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The absence of popular social-media apps such as WhatsApp and Facebook and the requirement to recharge ₹1,500 annually may limit take-up of JioPhone, according to analysts at brokerage firm HSBC Securities.
The feature phone of 4G entrant Reliance Jio Infocomm is likely to hit markets this week, with 6 million units already pre-booked. It stands out as a differentiated product in the feature phone segment (₹1,000-2,000 price range) as it scores relatively better on data functionalities and voice commands, and has an attractive pricing plan of ₹150 tariff with a daily data usage of up to 500 MB.
The phone comes pre-loaded with all Jio apps with a strong focus on entertainment. Incumbents may find it tough to match Jio’s offering. Separately, the feature phone comes with a TV cable and adaptor.
The incumbents may see accelerated churn at the lower end of the base as feature phone subscribers account for 50 per cent of their base and at least 20-30 per cent of their revenues.
“We see incumbents cutting voice rates in an attempt to retain these subscribers. We see feature phones sold at anything between 25 million and 40 million, and there is a strong case for incumbent telcos to increase capex and step up 4G investments rapidly,” it added.
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