Reliance JioPhone, announced at the company's AGM on 21 July, could prove to be a huge disrupter in the market because of the offers it comes with. The phone, according to Reliance Chairman Mukesh Ambani, is effectively free as it comes with a refundable deposit of Rs 1,500.
This deposit can be claimed after three years, once the instrument is returned. But how many would really return the instrument? The investment may not seem like much for a smart feature phone, but if you look at the numbers Reliance is planning to roll out, the figures are staggering.
This year, the company plans to sell about 18 million phones. That would net it about Rs 2,700 crore by December itself. Even if it had to return the money to users at the end of three years, it would earn substantial interest on the money collected. Its real revenue though will come from the data charges – which seem low right now – but will create a captive, addicted audience over the next few years, slowly increasing its average revenue per user.
The Quint decodes what this could mean.
Also Read: Free Reliance Jio 4G VoLTE Feature Phone Launched
Don't have time to watch the video? Then here are some Frequently Asked Questions that we have some answers to.
(We all love to express ourselves, but how often do we do it in our mother tongue? Here's your chance! This Independence Day, khul ke bol with BOL – Love your Bhasha. Sing, write, perform, spew poetry – whatever you like – in your mother tongue. Send us your BOL atbol@thequint.com or WhatsApp it to 9910181818.)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)