Reliance Jio may launch Rs 500 4G feature phone in July

Key highlights:

• Reliance Jio to launch 4G VoLTE feature phone for Rs 500
• The company expects the 4G feature phones to cross over the hurdle adoption
• The company will be subsidizing the phone to make the device cheaper

In a move that may see Reliance Jio's user-base increase even further, the company is planning of launching 4G feature phone priced at just Rs 500. In the short time since its existence the Mukesh Ambani-led company registered over 112 million subscribers.

One of the biggest hurdles to faster 4G adoption in the country being the limited number of 4G-capable phones, the company expects the 4G feature phones to cross over the hurdle.

While earlier reports suggested that the Reliance Jio phones will be priced between Rs 999 to Rs 1,500. A new report by Economic Times says that Reliance Jio may soon launch a 4G feature phone priced at just Rs 500.

It said that the company will be subsidizing the phone to make the device cheaper and more accessible to the lower end of the consumer base.

This new development will the second time a Reliance feature phone will be launched in Rs 500. However, earlier it was Mukesh's brother Anil Ambani's ADAG group that had launched a CDMA-based feature phone for Rs 500.

Ringing Bells has also launched the Freedom 251 smartphone for Rs 500 in February. However, not many phones have made it into the market.

Reliance Jio will however launch a feature phone with 4G VoLTE capabilities which will allow users to use 4G data. It is however not clear how users will consume high volumes of 4G data with only making 4G calls and maybe browsing on the small screen of the feature phone.

There are also reports that Reliance Jio may soon launch a new 4G-capable laptop with dedicated 4G SIM slot, besides more offers and discounts.

Reliance Jio currently offers smartphones under the Lfy brand which start at Rs 3,000 in the economy 4G phones segment. However, the Rs 500 feature phone by Reliance Jio would disrupt the Indian telecom sector and also the feature phone manufacturers. This will facilitate more buyers to shift to 4G network with the need for a higher priced smartphone.

The company has already created a huge disruption in the telecom market after its launch of Jio 4G services back in September last year.

Jio has already placed orders for around 18-20 million 4G feature phones with Chinese manufacturers such as Zhejiang Techain Electronics Technology Co, Shenzhen Chino-E Communication Co, Crave and Megaphone, said the report. The shipments could begin as early as the end of this month or the first half of next month.

However, it is not known whether the subsidised phones will be launched as a part of an offer from Reliance Jio or will be stand alone device.