India preparing for 4G/LTE revolution with Rs.2000 4G smartphone from Reliance Jio
Reliance Jio Infocomm the subsidiary of Reliance Industries hopes to do a repeat of what Reliance communications did in 2003 with mobile telephony in India. It is in talks with Gionee, Huawei and Xiaomi to secure smartphones for as low as $30 (roughly Rs. 1,800). In 2003, Reliance Communications promised a mobile for for Rs.500.00 for every Indian and was successful in roping in 1 million customers within few days.
Sources indicate Reliance Jio will be unrolling its national 4G/LTE juggernaut in coming months and to make it successful, Reliance Jio will be offering 4G/LTE enabled smartphones at a cut-throat price of Rs.2000.00.
Reliance has reportedly spent $13 billion (roughly Rs. 82,779 crores) for laying out the 4G/LTE infrastructure and without wide acceptance, its Indian rollout plans can go awry. By offering smartphones at Rs.2000.00 it will look to seize on the first mover advantage as well as cut through the competition offered by 4G handset makers who are pricing their smartphones at around Rs.10000.00.
“(Jio) will go for the kill from the start,” said Neil Shah, research director at Counterpoint Technology Market Research. He adds,”They definitely want to go for mass market play with 4G, because only that will give them the scale to be profitable.”
Looks like Indians are on the verge of a 4G/LTE revolution akin to the mobile telephone one which took off in 2003 with the entry of Reliance and Airtel.