The US-based firm was skeptical over Jio’s proposition to hold on subscribers with Rs 153 a month plan. "In all likelihood, if the consumer can afford to pay at least Rs 153/month for three years (JioPhone ARPU pricing), s/he is quite likely a smartphone user well before this three-year period runs out," it said in the report.Smartphone penetration for Airtel and Idea have crossed 40% of their subscriber base even as a significant part of them are not broadband (3G/4G) users yet. The finding points out that the low-end of this smartphone user base operates at clear sub-Rs 200 ARPU (Average Revenue Per User) and consumers would likely to consider the pros and cons of downtrading to JioPhone from a smartphone.It is this gap that Ambani wants to bridge and he may have found a way around it with WhatsApp. "Some of the (JioPhone) challenges relate to feasibility, while others relate to the product being attractive and attractively-priced enough to induce habit-changing consumption," the brokerage said.Reliance Jio that forayed into commercial fourth generation or 4G technology-based services in September 2016, has launched JioPhone some weeks back at a refundable Rs 1,500 security deposit for a lock-in period of three years to compliment Jio services. The JioPhone is scheduled to hit the markets in September, while pre-bookings will start from August 24.

Source: Economic Times August 10, 2017 05:40 UTC