JioPhone Offer Might Attract Airtel, Vodafone 2G Users: Report

Reliance Jio has announced new offers on its feature phone. This move will likely affect the non-data 2G users of Airtel and Vodafone Idea, reports Economic Times. According to the report, this move will help Jio increase its subscriber base, but it will affect its average revenue per user.

"The offer targets non-data/2G subscribers of Bharti and VIL, which stand at 42 percent and 52 percent, respectively. The move is negative for both Bharti and VIL, and historically VIL has been more susceptible to market share loss," analysts at brokerage firm Emkay was quoted by ET.

Reliance Jio has recently announced a new offer for its subscribers. Under this Diwali offer, the company is providing the JioPhone only for Rs 699, instead of Rs. 1,500. This means users can save Rs. 800. Jio will also provide data benefits of Rs. 700. However, to avail this offer customers will need to do seven recharges worth Rs. 700, after that the telco will add Rs. 99 worth of data.

To recall, the company launched JioPhone in 2017 at Rs. 1,500 with an exchange scheme. But, now users can buy this device, without exchanging any phone.

"This is a smart strategy to acquire new customers. In the next few quarters, there will be an ARPU drop but a company looks at long term and sustainability," Deven Choksey, MD at KR Choksey Investment Managers was quoted by the report. Adding to that, "Jio is well-positioned because these customers will move onto higher tariff plans as they consume more data, and later on when broadband is offered, there will be more takers.

Should You Go For JioPhone During This Festive Season?

Almost all companies are offering discounts on smartphones on e-commerce platforms (Flipkart and Amazon). But, if anyone wants to upgrade his/her feature phone, then you can opt JioPhone.