New Delhi [India], July 4 : The launch of Reliance Jio's new entry-level phone with more aggressive tariffs plans was aimed at attracting additional feature phone users into its fold, said Morgan Stanley in a report.
It, however, said it does not view this as "immediately disruptive" for competitor Bharti Airtel "but would be watchful".
"At Rs999 per phone, it is quite a competitive pricing for an entry-level feature phone that could support online music and video streaming (Jio Saavn, Jio Cinema)...," said the Morgan Stanley report.
On the possible churn among 2G users, it said, "While we do not completely rule out potential increase in churn rate over time in the 2G user base, we will wait and watch the success in beta trials of Jio Bharat phones."
Jio on Monday launched a 4G-enabled phone 'Jio Bharat' at only Rs 999 per unit, the lowest entry price for an internet-enabled mobile phone.
A recharge of Rs 123 per month will provide users with unlimited voice calls and 14 GB data, compared to other operators' Rs 179 plan for voice calls and only 2 GB data.
India still has an estimated 250 million mobile subscribers trapped in the 2G era with feature phones.
Jio Bharat is being launched with the objective of empowering every Indian with the power of digital services, especially those who cannot afford a smartphone, Jio said in a release.
Beta trial for the first 1 million Jio Bharat phones will begin on July 7. The phone comes with inbuilt apps such as JioSaavn and Jio Cinema. It also offers UPI through Jio Pay.
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