Event update: Telecom - Jio feature phone exchange plan to offer 14GB at Rs99
Event
Reliance Jio has formally launched the Jio phone exchange offer, where existing feature phones users from any operator can avail this exchange offer.
Key details
- Feature phone users can bring in any feature phone (not older than 3.5 years) and exchange it for Jio phone.
- Users need to pay a refundable deposit of Rs501.
- The user needs to recharge for 6 months, which is worth Rs594.
- Jio is offering a plan of Rs99/month (28 days) – free voice calls, 14GB data( 0.5GB/day) and 6GB one-time data voucher worth Rs101.
- Thus effectively for Rs1095, users can upgrade from feature phone to a data enabled Jio phone for Rs1095 (including 6 months of ARPU).
Our view
At 215mn subs, the incremental smartphone market share gains will be challenging for Jio. To keep the subscriber momentum, Jio needs to expand its offering to address the feature phone market. This plan is clearly to accelerate the market share gains in the feature phone segment. Although the plan for Rs501 exchange was announced in the RIL AGM, we think that pricing and data offered (14GB/month for Rs99) is attractive. Though this plans also demands an upfront investment of Rs1095 from feature phone users who typically spend in small recharges. Jio has already been gaining market share from incumbents (visible in May subs data), which could accelerate in the interim.
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