JioPhone Ripple Effect: More cos plan 4G feature phone

Aug 1, 2017

More mobilephone companies are gearing up to launch affordable 4G feature phones by the year-end, anticipating a pick-up in demand following Jio's foray into the space, said a top official of 4G chipset firm Spreadtrum.

"We are in talks with 4-5 players for launching phones (on Spreadtrum chipset). We expect they will be launching them in the fourth quarter," Neeraj Sharma, Country Head - India, Spreadtrum Communications told PTI.

The company is also one of the chipsets suppliers for JioPhone.

Home-grown mobile firm Lava has already launched a 4G feature phone using Spreadtrum chipset. Another mobile phone firm, Intex, has plans to launch a similar phone for ₹1,999 this month end, but it will use Mediatek chipset.

"In India, a large population still uses feature phones, which are primarily on 2G. With the arrival of Reliance (Jio), which is a greenfield LTE only network, it makes sense for companies to launch 4G feature phone as there will be customers who are feature phone users, but would like to use Reliance as their preferred choice of operator," Sharma said.

Industry sources, who did not wish to be identified, said while some JioPhones will have chipset from Qualcomm, others will come with Spreadtrum chipsets.

RIL Chairman and MD Mukesh Ambani recently launched JioPhone at a one-time fully refundable deposit of ₹1,500 per unit.

When asked about the price point at which other players will sell their 4G feature phones, Sharma said it cannot be estimated at present because it will depend on the marketing strategies of the companies.

He, however, said the bill of material or total cost of components that will be used for making a 4G feature phone will be $20-30 (about ₹1,200-2,000) per unit.

"We are working with Reliance Jio as technology partner. They have announced that JioPhone will have Wi-Fi and NFC (near-field communications) capabilities by the end of the year. The final price will depend on companies' decision if they are willing to add these features," Sharma said.

He said the Spreadtrum chipset for 4G feature phone comes with a 1.2GHz dual-core processor, 3D graphics support, up to 5 megapixel of front and rear camera and 16 gigabyte of internal storage.

Indian Cellular Association National President Pankaj Mohindroo said there are about 450-500 million feature phone users in India with 130-140 million feature phones getting sold every year.

"In urban centres, 2G is highly spectrum inefficient. This phenomenon (launch of 4G feature phones) will be good in urban area, but ₹1,500 is very expensive for bottom of the pyramid. The package (in case of Jio) is very attractive, so some of the them may like to experiment with it," he said.

Mohindroo said besides 4G feature phone, some companies may launch 4G smartphones in low range.

Hit by the aggressive strategy of Reliance Jio and to counter the impact of JioPhone, Idea Cellular top officials, in its earnings call, had said the company is working with handset makers to bring down the cost of handsets.