Photo by Eirik Solheim on Unsplash
India’s wealthiest man, Mukesh Ambani, is making waves in the mobile phone market by introducing a 4G internet-connected phone called “Jio Bharat” for just $12. This move aims to disrupt the market of 2G non-smartphones that are used by approximately 250 million people in India. The Jio Bharat phone will initially be available on a trial basis on July 7 through Reliance Jio Infocomm Ltd., the No. 1 wireless carrier in India.
Source: Reliance Jio
This innovative product is part of the ongoing disruption caused by Jio, a company backed by Google and Facebook, which revolutionized India’s mobile telecom sector in 2016 with their initially-free data and inexpensive voice plans. This competition led to Jio and Bharti Airtel dominating the rapidly growing mobile market as a duopoly.
The Jio Bharat phone is not Jio’s first handset. They previously launched the 4G-enabled feature phone JioPhone in 2017, and the Android-enabled JioPhone Next smartphone in 2021. However, the Jio Bharat aims to be their most affordable offering yet. According to Bloomberg, the price is 20% cheaper than average non-smartphones in India.
With the Jio Bharat, Jio will provide a monthly unlimited voice and 14GB data plan within India for just $1.50. This is a competitive offering compared to Bharti Airtel’s unlimited call and 2GB data plan for $2.18.
The Jio Bharat will come equipped with Jio’s video and music streaming apps, digital payment capabilities, and a camera. While WhatsApp and Facebook are not currently available on the Jio Bharat, Mark Zuckerberg’s Meta has a stake in Jio.
Industry experts believe that Jio’s efforts to bridge the gap between 2G and 4G connectivity are crucial for India’s ongoing digital transformation. The Jio Bharat phone is seen as a positive step towards widening access to customers at the bottom of the socio-economic pyramid. However, its success and consumer reception are yet to be fully determined.
Further Possibilities
1. Rural E-Commerce Platform
There could be an e-commerce platform specifically tailored to rural customers who adopt the Jio Bharat phone. By partnering with local vendors and leveraging Jio's extensive network, the platform can facilitate online shopping for rural communities, creating a commission-based revenue model.
2. Gaming
If the new phone catches on, it expands the potential user base and creates new opportunities for game developers to cater to this larger market. The broader adoption of affordable Internet-connected phones can drive an increase in microtransactions and in-game purchases.
3. Dating
The affordability of Internet-connected phones allows online dating platforms to focus on localized content and cater to the diverse cultural preferences of different regions.
4. Targeted Advertising for Local Businesses
With a large user base on the Jio Bharat phone, Jio can offer targeted advertising opportunities for local businesses. By leveraging user data and location-based targeting, Jio can help small businesses reach their specific target audience, generating advertising revenue while supporting local entrepreneurship.
5. Mobile Financial Services
Building on Jio's digital payment capabilities, entrepreneurs might offer additional financial services, such as banking services, microloans, or insurance products tailored to the needs of the underserved population, generating revenue through transaction fees and interest charges.
