Improvement in technology is not a one day effort. It is a conscious determination that strives us to improve the current condition of today’s generation. Making people aware about the happenings in world, mobile phone, as a technologies counterpart, is a basic need today. Besides, its increasing price makes it a commodity not all can afford.
However, after Jio, a telecommunication company; made its debut in the market, the affordability factor saw a major transformation as the smartphones price began to tumble. On the other hand, big companies like Airtel, Vodafone and Idea, suffered the consequences and started losing their customers.
With the companies looking forth to finding the solution, Bharti Airtel, Vodafone India and Idea Cellular, are now working with the handset companies to make 4G smartphones drastically cheaper than feature phones, maybe as low as Rs 500. Also,they might offer voice and data plans for Rs 60-70 a month.
The approach looks a nice counter to Reliance’s Jio, which offers features to its users atRs 49 per month. While it looks quite obvious that low-cost smartphones will hurt average revenue per user in the coming future, but the telecommunication companies are focused to retain their potential customers for the long run.
In addition, feature or basic phone subscribers typically use 2G voice services and account for 65-70% of India’s billion-plus mobile users. They contribute 50% of the telecom sector’s revenue, sizeable enough for India’s operator to try and retain them.
Bringing out new phones along with data and voice plans at subsidized rates will add new clients for sure. However, will the company be able to generate enough revenue or not is the question, that only time will answer.