The three biggest telecom operator that is Bharti Airtel, Vodafone India and Idea cellular is all set to work on handset company that will make 4G smartphones costing at just Rs 500 with one of the cheaper monthly voice and data plans of just Rs 60-70.
Giving competition for Reliance Jio plan of subsidising 4G feature phones with latest Rs 49 a month for Jio phone users, will give benefit to large amount of voice subscribers.
In the matter of launching the cheaper phone One of the telco’s executive stated that, “we will gear towards low-cost smartphones via alliances. Smartphones are expected to become cheaper, so for an offering with them, it makes more sense that setting up our own phones”.
The basic intention is to bring down the prices of smartphones and bring it to a level of feature phones by adding up bundled data and voice packages with an amazing cashback offers too.
The three companies are already working together with smartphone priced under Rs 1,500 with data and voice along with cashback.
After Jio recently lowered price for the monthly recharge for Jio users to Rs 49 to Rs 153 with unlimited voice and 1 GB of data for 28 days, the three companies are struggling with high debt, slumping revenue and profitability but still lowers the price bar.
Analyst said that the Indian billion plus mobile subscribers are already contributing 50% of the telecom sector’s revenue, making the Indian operators to attract them at any cost.
Shobhit Srivastava, a research analyst at counterpoint technology market research said: “The launch of low-cost 4G chipsets from spreadtrum and mediaTek with google’s android go strategy makes it possible for OEMs to offer cheap smartphones that live up to the first-time smartphone user’s expectations”.