comscore Reliance Jio 4G services may face hurdles due to low spending users: Report
News

Reliance Jio 4G services may face hurdles due to low spending users: Report

The much-awaited 4G service of Reliance Jio Infocomm may face hurdle in attracting customers due to low average spend by them and adoption of handsets with special calling feature, global brokerage CL

  • Published: November 24, 2015 10:42 AM IST
reliance-jio-infocomm-logo

The much-awaited 4G service of Reliance Jio Infocomm may face hurdle in attracting customers due to low average spend by them and adoption of handsets with special calling feature, global brokerage CLSA has said. Also Read - DoT permits telecom service providers to go ahead with 5G trials

“…new entrant Reliance Jio will still face the daunting task of convincing/bundling/subsidizing 4G users to adopt new handsets when 95 per cent of subscribers are still prepaid with an average Arpu (average revenue per user) of Rs 160 per month. Also Read - Facebook invests Rs 43,574 crore in Reliance Jio; buys a 9.99 percent stake

“We maintain that switching to 4G handsets in this low-ARPU prepaid market and wide consumer acceptance of 4G/VoLTE will remain the key hurdles for the new entrant,” the report said. Also Read - Reliance Industries to buy majority stake in Den Networks, Hathway Cable; reports increase in Q2 net profit

VoLTE is advance version of present internet-based calls called Voice over Internet Protocol (VoIP) which is being facilitated by mobile applications like Skype, WhatsApp etc. In case of LTE, though the technology base remains that of internet, the download and upload speed offered through it is significantly high. Airtel claims that its 4G subscribers can download 10 movies in less than 30 minutes.

“VoLTE is yet to be launched even in China and even after Reliance Jio will launch commercially, users will need 4G VoLTE phones and interconnecting to incumbent voice networks will be key…While the number of 4G-enabled handsets being offered in the market has jumped, the availability of VoLTE enabled handsets remains low,” CLSA said.

The report estimates that top three operators continue to gain share and account for 73 per cent of sector revenue and expect data revenue to nearly triple to $14 billion. The report project Bharti Airtel as best player to cash on mobile data boom as it holds highest quantum of spectrum among incumbents that can be used for 4G services.

“We maintain Bharti Airtel as the best play on India’s mobile data boom and accelerating data network rollouts by top operators will drive Bharti Infratel’s (infrastructure arm of Bharti Airtel) growth,” the report said.

Elaborating on growth in 4G eco-system, CLSA said over the past three quarters India mobile device market has seen sharp rise in 4G smartphone shipments and a decline in non-4G smartphone shipments.

“Reliance Jio will also launch its own VoLTE-enabled 4G handset branded ‘LYF’ besides multiple distribution deals. 4G handsets are currently at 10 million (mostly not VoLTE-enabled) but in the past nine months, 4G shipments have jumped from 1 million to 5.5 million, implying one of every four smartphone shipped is 4G,” the report said.

There are over 120 4G handsets currently being offered in India 41 percent of which are below the price point of Rs 11,000 and highest number of offerings are in the Rs 7,000- Rs 11,000 range, the report said.

“Most of the VoLTE enabled handsets are above the Rs 20,000 segment however recently Indian phone manufacturers, Intex and Lava, as well as LG have launched VoLTE capable handsets priced in the range of Rs 10,000-12,000. As we near the launch of Reliance Jio’s 4G services, we expect more such launches,” the report said.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: November 24, 2015 10:42 AM IST



new arrivals in india

Infinix Note 10 Pro
Infinix Note 10 Pro

16,999

Infinix Note 10
Infinix Note 10

10,999

Vivo Y73
Vivo Y73

20,990

OnePlus Nord CE 5G
OnePlus Nord CE 5G

22,999

iQOO Z3
iQOO Z3

19,990

Realme C25s
Realme C25s

9,999

Poco M3 Pro 5G
Poco M3 Pro 5G

13,999

Realme X7 Max 5G
Realme X7 Max 5G

26,999

Oppo F19
Oppo F19

18,990

Motorola Moto G40 Fusion
Motorola Moto G40 Fusion

13,999

POCO M2 Reloaded
POCO M2 Reloaded

9,499

OPPO A74 5G
OPPO A74 5G

17,990

Oppo A53s 5G
Oppo A53s 5G

14,990

Vivo V21 5G
Vivo V21 5G

29,990

Realme C25
Realme C25

9,499

Realme C21
Realme C21

7,999

Realme C20
Realme C20

6,799

Motorola Moto G60
Motorola Moto G60

17,999

iQOO 7
iQOO 7

31,990

Samsung Galaxy M42 5G
Samsung Galaxy M42 5G

21,999

Xiaomi Mi 11 Ultra
Xiaomi Mi 11 Ultra

69,999

Xiaomi Mi 11X Pro 5G
Xiaomi Mi 11X Pro 5G

39,999

Xiaomi Mi 11X
Xiaomi Mi 11X

29,999

Realme 8 5G
Realme 8 5G

13,999

Samsung Galaxy F02s
Samsung Galaxy F02s

8,999

Samsung Galaxy F12
Samsung Galaxy F12

10,999

POCO X3 Pro
POCO X3 Pro

18,999

Realme 8 Pro
Realme 8 Pro

17,999

Realme 8
Realme 8

14,999

Vivo X60 Pro Plus
Vivo X60 Pro Plus

69,990

Vivo X60 Pro
Vivo X60 Pro

49,990

Vivo X60
Vivo X60

37,990

OnePlus 9 Pro 5G
OnePlus 9 Pro 5G

64,999

OnePlus 9R 5G
OnePlus 9R 5G

39,999

OnePlus 9 5G
OnePlus 9 5G

49,999

Samsung Galaxy A72
Samsung Galaxy A72

34,999

Samsung Galaxy A52
Samsung Galaxy A52

26,499

Micromax In 1
Micromax In 1

10,499

Asus ROG Phone 5
Asus ROG Phone 5

49,999

Samsung Galaxy M12
Samsung Galaxy M12

10,999

Motorola Moto G30
Motorola Moto G30

10,999

Motorola Moto G10 Power
Motorola Moto G10 Power

9,999

Oppo F19 Pro Plus 5G
Oppo F19 Pro Plus 5G

25,990

Oppo F19 Pro
Oppo F19 Pro

21,490

Xiaomi Redmi Note 10 Pro Max
Xiaomi Redmi Note 10 Pro Max

18,999

Xiaomi Redmi Note 10 Pro
Xiaomi Redmi Note 10 Pro

15,999

Xiaomi Redmi Note 10
Xiaomi Redmi Note 10

11,999

Realme Narzo 30A
Realme Narzo 30A

8,999

Realme Narzo 30 Pro
Realme Narzo 30 Pro

16,999

Infinix Smart 5
Infinix Smart 5

7,199

Samsung Galaxy F62
Samsung Galaxy F62

23,999

Samsung Galaxy A12
Samsung Galaxy A12

12,999

Nokia 5.4
Nokia 5.4

13,999

Nokia 3.4
Nokia 3.4

11,999

Realme X7 Pro 5G
Realme X7 Pro 5G

29,999

Realme X7
Realme X7

19,999

Vivo Y31
Vivo Y31

16,490

Oppo Reno5 Pro 5G
Oppo Reno5 Pro 5G

35,990

Samsung Galaxy S21 Ultra 5G
Samsung Galaxy S21 Ultra 5G

1,05,999

Samsung Galaxy S21 Plus 5G
Samsung Galaxy S21 Plus 5G

81,999

Samsung Galaxy S21 5G
Samsung Galaxy S21 5G

69,999

Vivo Y12s
Vivo Y12s

9,990

Vivo Y51A
Vivo Y51A

17,990

Samsung Galaxy M02s
Samsung Galaxy M02s

8,999

Xiaomi Mi 10i
Xiaomi Mi 10i

21,999

Oppo A15s
Oppo A15s

11,490

Tecno Spark 6 Go
Tecno Spark 6 Go

8,499

Vivo V20 2021
Vivo V20 2021

24,990

Vivo Y20A
Vivo Y20A

11,490

Xiaomi Redmi 9 Power
Xiaomi Redmi 9 Power

11,999

Motorola Moto G9 Power
Motorola Moto G9 Power

11,999

Motorola Moto G 5G
Motorola Moto G 5G

20,999

Vivo V20 Pro
Vivo V20 Pro

29,990

Xiaomi Mi 10T
Xiaomi Mi 10T

35,999

Xiaomi Redmi 9i
Xiaomi Redmi 9i

8,299

Xiaomi Mi 10T Pro
Xiaomi Mi 10T Pro

39,999

Infinix Hot 10
Infinix Hot 10

9,999

Vivo V20 SE
Vivo V20 SE

20,990

Vivo V20
Vivo V20

24,990

Micromax In 1b
Micromax In 1b

6,999

Micromax In Note 1
Micromax In Note 1

10,999

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

13,999

Oppo F17
Oppo F17

16,990

Samsung Galaxy M51
Samsung Galaxy M51

22,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Best Sellers