ICICI, Telecom News, ET Telecom

Last Friday, Jio launched the highly anticipated JioPhone Next last Friday, which will be purchased from November 4, 2021 with an upfront payment of Rs 6,499. Users can also pay Rs 1,999 in advance and the rest via EMIs. spread over 18 or 24 months with service refills.

NEW DELHI: Reliance Jio aims to integrate 100 million users using its latest 4G smartphone, JioPhone Next, which was developed in partnership with Google, ICICI Securities said in a note Monday.

“We expect the company to focus heavily on converting JioPhone customers (whose three years are approaching expiration) to JioPhone Next,” the brokerage said.

Jio launched the highly anticipated JioPhone Next last Friday which can be purchased from November 4, 2021 with an upfront payment of Rs 6,499. Users can also pay Rs 1,999 in advance and the remaining amount via EMI over 18 or 24 months with service refills. Monthly payments start from Rs 300 to Rs 600.

“The price of the JioPhone Next is not disruptive as there are mobiles with similar functionality available in the market,” ICICI said, adding that the device comes with rich voice features such as read aloud, immediate translation and others.

The average revenue per user (ARPU) of the JioPhone Next will, however, be higher than existing smartphones.

“Our calculations suggest that the underlying base prices for the services are slightly lower than the existing base package; however, JioPhone Next has a significant restriction on voice minutes. Monthly data usage is limited to 5 GB and only 100 minutes will cost Rs113-119 per month, ”ICICI said, adding that charging the smartphone costs Rs 129 (or Rs 138, adjusted for 30 days) as well as calls unlimited voice and 2 GB of data.

Analysts said the price is higher than what is available in the market and therefore will not be able to bring the disruption it was intended for. They said Airtel and Vodafone Idea might not need to worry much about Jio’s offer as they can easily counter it with their bundles with handset brands.

“The most popular plan (1.5 GB of data per day) will cost Rs263-Rs269 per month, which is 23-26% more than the current price of Rs199 (Rs213, adjusted for 30 days),” ICICI said. “The price of the underlying services is also comparable to, or higher than, existing tariffs, which supports our argument in favor of an anticipated increase in tariffs… In addition, the increase in the tariffs of the existing packs will make the JioPhone Next services more affordable. In the coming months. RJio has priced the new product in such a way that it will help the industry to repair, ”he added.

The brokerage firm expects the prices of the services for JioPhone Next to become attractive with tariff increases and an anticipated tariff increase in the smartphone category could arrive soon.

“In this case, the prices of the JioPhone Next will seem affordable and this will allow RJio to attract more users. In our opinion, this is an early involvement of JioPhone Next on the rate hike, ”said ICICI.

Jio reported an ARPU of Rs 143.6 for the second quarter of 2021, up from Rs 138.4 quarter on quarter.

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