Reliance Jio Infocomm is anticipated to provide users of its 4G feature handset the alternative to give back the phone prior to the predetermined time frame of 3 Years and get fraction of the security deposit returned. People having deep knowledge of the development claimed that Mukesh Ambani-headed Jio is expected to declare the policies of the refund offer in the coming couple of days.
The feature handset, dubbed as JioPhone, will be accessible from August 15, 2017 for beta testing. Pre-bookings for the phone will begin from August 24, 2017. Jio did not react to media’s questions on this subject.
The decision to roll out more refund alternatives arrives in the background of some experts inquiring if the JioPhone offer is eye-catching enough for wide scale acceptance of the new gadget. The new telecom segment player is counting on this device to drive user base. The offer by the company says that Rs 1,500 is refundable post 3 Years on return of the handset and an extra Rs 153 of monthly tariff.
Via the 4G handset, Jio is aiming some 500 Million users in India who are still on fundamental 2G/3G feature handset, have not shifted to a smartphone for reasons of affordability or due to the fact that they do not feel they require one, and using chiefly voice services. The firm has grabbed almost 125 Million users so far, but there has been a slowdown in the speed of additions of user, mainly due to restricted number of 4G handsets in the market.
Users who give Rs 1,500 for 3 Years as deposit for a handset and pay Rs 164 each month (Rs 153 for 28 Days) are 2 equally private sets. The Average Revenue Per User (ARPU) for most feature handset consumers in the country is less than Rs 100. This is much less than the Rs 153 per month that Jio is asking its users to give each month.
It has been observed that churn rate in the country is reasonably high, at 3–5% per month. Let us see if JioPhone will be able to show its strength in the market or not.