Reliance Jio’s launch hype sees LYF phone sales spurt

Whether Reliance Jio Infocomm (RJio) launches 4G services on August 15 is anybody’s guess, but the hype around the proposed commercial launch is resulting in a windfall for the company.

RJio, the digital arm of billionaire Mukesh Ambani’s Reliance Industries Ltd (RIL), has been registering a rise in sales of its LYF handsets and SIM cards for the past one month, according to market sources.

“The footfall at Reliance stores has increased by at least three times during the past 20-25 days, with customers mostly seeking LYF handsets and 4G SIM cards. Most of these footfalls are also translating into sales,” a source close to the development told BusinessLine .

The number of users has also gone up significantly, another source said, but did not provide the number of handset sales and subscriber additions the company has made. An email sent to RJio did not elicit any response.

On July 15, RIL said that its telecom venture had garnered more than 1.5 million test users and the company will launch commercial services soon.

“There is frenzied activity across all Reliance retail stores as hopes of the Independence Day launch are gaining momentum. All staff have been asked to focus on RJio customers and to get as many Customer Application Forms filled up (as possible),” another source said.

RJio is selling its SIMs and handsets through retail outlets, including Reliance Digital, Reliance Digital Express and Reliance Digital Express Mini, as well as independent sales channels.

Last month, analyst reports said that RJio would launch 4G services on August 15 with unlimited voice bundled with its data offering of above ₹300 per month. However, company employees manning various retail outlets said they haven’t received any official communication on the launch date.

RJio had earlier said it will launch the services only after extensive testing of its network and technology.

According to brokerage firms, RJio is expected to offer free voice along with its data services.

“When Jio commercially launches its services (expected on August 15), we expect the company to offer a differentiated offering. In our view, it will be unlimited VoLTEbundled with its data offering of above ₹300 per month,” Bank of America Merrill Lynch said in a report.

“Vendors have indicated to us that Jio has adequate capacity (850, 1800, 2300 MHz) to offer unlimited voice without congestion for the next few years at least,” the report dated August 4, said.

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