New Delhi [India], July 4 : JioBharat phone is better placed to disrupt the market versus the original JioPhone launched in 2018, according to Emkay Global Financial Services.
In a report, Emkay noted the new 4G-enabled phone is a more focused product, has a simpler value proposition, and has better distribution, and production planning.
"We believe JioBharat can again transition over 100 mn subscribers if there are no supply chain or product-performance hiccups," said the Emkay report.
Vodafone Idea and Airtel had 103 million and 111 million 2G subscribers, respectively, at end of 2022-23, and the shift of 40 per cent of 2G users to JioBharat may impact their India mobile revenue by 11 per cent and 8 per cent and impact mobile EBITDA by 19 per cent and 11 per cent, respectively.
The launch of JioBharat, Jio, Emkay said, would once again expand the adoption of digital networks and efficient use of next-generation technologies
"There is an addressable market of over 250 mn users, where the device was a key challenge. With Jio's network and distribution strength along with the JioBharat device, Jio would be able to capture over 40 per cent market share," Emkay said.
Jio on Monday launched a 4G-enabled phone 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, 2023. The phone comes with inbuilt apps such as JioSaavn and Jio Cinema. It also offers UPI through Jio Pay.
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