Flash sale of JioPhone 2, with YouTube and Facebook installed, starts today

Jio is getting closer to building a closed-loop ecosystem, with multiple device, OS and data offerings with the launch of both Jio GigaFiber registration as well as the introduction of popular apps on the Jio Phone OS on Wednesday. The upgraded version of Jio’s feature phone will start registrations on Thursday.

Starting Wednesday, Reliance Jio is introducing common apps such as Google Maps, YouTube and Facebook on JioPhone, the telco’s proprietary device.

Currently, JioPhone users depend largely on internal apps for content consumption. Further, starting midnight on August 16, the upgrade to the feature phone JioPhone 2 will also be available for purchase through their website.  

The company also started registrations for its Jio GigaFiber fiber to the home (FTTH) service on Wednesday. However details of tariff plans are not available yet.

JioPhone 2 is meant to give the feel of a high-end phone with QWERTY keyboard as well as a larger screen, both of which are aimed primarily towards driving data consumption on the Jio ecosystem.

Analysts see this as a move to attract more the digitally-savvy and aspirational segment within the lower budget bracket, while also helping to push more content consumption and advertisement revenues similar to ecosystems of Google and Apple. JioPhone 2 will be available only through online bookings on the company website for the time being.

“At 215 million (Jio) subscribers, the incremental smartphone market share gains will be challenging for Jio. To keep the subscriber momentum, Jio needs to expand its offering to address the feature phone market. This plan is clearly aimed to accelerate the market share gains in the feature phone segment,” said a recent IDFC report.

While releasing its quarterly results, the company said less than 10 per cent of the total Jio user base continues to be on the cheapest Rs 49 plan, with most users choosing to upgrade to higher plans as data consumption increases across the ecosystem. Jio currently has the highest average revenue per user (ARPU) in the market at Rs 134.5, much higher than that of rivals Airtel (Rs 105) and Vodafone (Rs 102). As Jio primarily depends on data consumption for revenue, the additional feature phone is expected to ride up the ARPU.  Further, the current strategy is to offer a whole range of services to Jio subscribers in order to increase data consumption and monetise it through apps and advertisements.

During the June quarter results, Jio’s management said revenue from app and advertising within KaiOS ecosystem of the JioPhone is routed into Reliance Retail. Reliance Retail and Jio together account for 21 per cent of parent Reliance Industies' earnings before interest, tax, depreciation and amortization, up from 13 per cent last quarter.

The FTTH services will be launched based on the demand density from different localities. The services will be launched across 1,100 cities aimed to reach 50 million households.

What to expect

•  JioPhone users will have access to Facebook, YouTube, Google Maps
•  WhatsApp to be introduced shortly
•  Jio Gigafiber, which will also see registrations from today, is  targeted towards 50 mn households