Reliance Jio recently introduced its most affordable 4G phone, Jio Bharat in India at an incredibly low price of ₹999. This move is part of Jio’s plan to eliminate 2G networks in India. The launch of the Jio Bharat phone is a significant step towards digital inclusion in India. It aims to provide affordable and reliable internet access for everyone. This means it could transform the lives of people who have previously been restricted to 2G due to financial limitations and help fill the gap between urban and rural India.
While the 5G network is rapidly expanding in the country, there are still around 250 million mobile users stuck using 2G feature phones as per Jio and these users don’t have access to the internet, digital payment methods, or entertainment options. This creates a significant digital divide, a gap between urban and rural India which over time has worsened due to the inability of the low-income rural communities who can’t afford essential digital services.
With the government’s efforts to promote digital payments, the country’s cash-based economy is experiencing a noticeable change in behavior. The UPI system has gained considerable traction in India with nearly 300 million individuals and 50 million merchants using it. Moreover, it has been announced that all panchayats across the country will be required to use digital payments for development work and revenue collection starting from 15th August. As a result, Jio Bharat with its JioPay, a UPI-based digital payments app is expected to greatly boost the growth of digital payments in rural India.
According to the India Telecom report by JP Morgan, ‘Jio Bharat’ has the potential to disrupt the entry-level market. “We believe with this phone Jio can take market share at the lower end of the market. This also puts Bharti at risk as it can see increased churn from its recent 2G price action of increasing the Rs99 plan to Rs155 plan,” said the JP Morgan report.
According to a new report by Emkay Global Financial Services, with the recent increase in 2G tariff by telecom operators and limited availability of affordable feature phones, JioBharat is coming at the right time to accelerate the 2G to 4G transition and enable digital experiences for masses. The Jio Bharat phone is expected to democratize internet access, enhancing these users’ economic prospects. With Jio’s network and distribution strength along with the device, Jio would be able to capture over 40% market share.
Jio says at only ₹999, this will be the lowest entry price for an internet-enabled phone in addition to its 30% cheaper monthly plan that’s cheaper than the competition. The company has launched two new Jio Bharat plans priced at ₹123 and an annual ₹1,234 plan. The ₹123 plan will offer unlimited voice calling and 14 GB of data valid for 28 days validity whereas the annual plan provides a total of 168 GB of data.
