Stung by Jio, Idea to venture into cheap handsets market

  • Stung by Jio, Idea to venture into cheap handsets market

Stung by Jio, Idea to venture into cheap handsets market

Micromax has also said that it will launch its own 4G VoLTE featurephone - Bharat 1 - at Rs 1999. "While we have no intention to subsidise handsets, both handset manufacturers and telecom operators need each other to make sure that the offering to the consumer is strong enough when you have to make a choice between a bundle offer and telecom operator with a locked handset", he said.

Currently, Mukesh Ambani-owned Reliance Jio is offering the VoLTE or Voice over LTE networks in the country and that was the main reason why Jio is providing free calls to its customers.

A related report on the financial performance of Ambani's telecom business states that despite sucking in over Dollars 31 billion in investments - a substantial chunk of which has been aimed at the success of Reliance Jio - this vertical is yet to earn Ambani and his shareholders any profits.

Well, in the same attempt (as per as our knowledge), Idea is planning to launch a smartphone in Rs 2,500, which would be able to handle 4G services. For the company's upcoming Jio phone, Reliance has partnered with handset maker company Intex and some Chinese smartphone makers. Nonetheless, it showcased several features that will make it a feasible option for first-time Internet users who do not have much access to the Web on the legacy feature phones. Though each plan offered by different carriers caters to different needs of the user, these particular data pack should be sufficient for an average Indian consumer. Faced with the challenge, Idea Cellular on Friday said it is working with handset makers to bring down the cost of handsets.

Amid the ongoing telecom wars and the race to win the huge domestic market, Reliance Jio had launched a cheap 4G-enable handset a few days ago.

Idea 4G feature will come with a price tag between 2000-2500. Reports say that the company is working with handset companies in order to lower the cost of the mobile phones.

On July 21, Ambani had said that customers can get the JioPhone with a Rs 1,500 deposit, which they can claim after three years.

Jio is slated to beta-test the low-priced phone from 15 August. Those who pre-book the handset will start receiving their order in September on first come, first serve basis.