Reliance Jio is reportedly preparing to launch a low-cost 4G Android smartphone, and market analysts believe the timeline is being pulled forward. The push comes after subscriber growth slowed, prompting the Mukesh Ambani-led telecom to lean on an affordable handset built in partnership with Google. Here is what is known so far, and why the move matters.
Why Reliance Jio is accelerating its 4G phone plans
TRAI subscription data for September 2020 showed that Jio added fewer new users month over month. According to that report, Bharti Airtel signed up twice as many subscribers as Jio. Market research firm ICICI Securities estimates that the slowdown will push Jio to speed up the launch of its low-cost 4G Android smartphone.
The thinking is straightforward. A cheaper handset lowers the barrier to entry for first-time smartphone buyers, and that fresh pool of users could help reverse the dip in new additions. Analysts expect the device to arrive sooner rather than later as a direct response to the cooling growth.
The Reliance Jio and Google partnership explained
The plan is to bring Android phones priced under Rs 5000 through a tie-up with Google. Under the arrangement, Google handles the software side of the device while Jio takes care of the hardware. The two companies are also said to be working together on affordable 4G and 5G smartphones more broadly.
One important caveat: there is no information yet about the specifications of any upcoming Jio phone. The details below cover what has been reported, but the hardware sheet remains unconfirmed.
- Target price: under Rs 5000
- Software: handled by Google
- Hardware: handled by Jio
- Scope: affordable 4G and 5G devices in the works
When will the phone launch?
A September report initially suggested the cheap 4G phones from Jio and Google would arrive in December. That timeline has since shifted. The handsets are now reported to reach the market in the first quarter of 2021. No firm launch date has been confirmed.
How the subscriber numbers stack up
In September, Jio added 1.5 million new subscribers, while Airtel brought in 3.6 million. Even so, Jio's active subscriber base percentage is higher than that of Bharti Airtel. You can follow more updates on the company through our Jio coverage.
Jio reached 100 million subscribers in just five months and has stated its aim of becoming the fastest-growing telecom operator with 500 million subscribers. It became the largest telecom company last month, though hitting the 500 million mark is proving difficult for now. A successful budget handset could be the lever that helps close that gap.
