JIO:-How to book the handset and Essentially 'free' JioPhone to hit telcos and cable operators hard
NEW DELHI: There was euphoria among investors when the 40th annual general meeting of Reliance Industries kicked off on Friday morning. Most investors were looking for the announcement of a possible Rs 500 4G handset. But the company delivered a plan that effectively offers the phone at 'zero' cost.
The caveat is that subscribers would pay Rs 1,500 upfront, which would be fully refundable after three years. As the AGM progressed, RIL shares came off the day's high, only to rebound later on the news of bonus share issue.
Mukesh Ambani, Managing director and Chairman of Reliance Industries, told the AGM that JioPhone will be available for user testing in beta from August 15 and for pre-booking from August 24. Ambani said his firm was looking to roll out 5 million phones every month.
Vikas Agarwal of OnePlus India said each and every service that Jio is offering is directed at users utilising their services.
"A lot of these services are traditionally offered by the global brands like YouTube or other technology services. Jio has to somehow figure out a way to get into the mix and with the free bundled data plan it plan to offer, it expects users to start using Jio services. I think other telecom players also have to move into services on data and not just on the telecom services," Agarwal said.
Jimeet Modi CEO, SAMCO Securities said one operator's gain is other's loss in the telecom space and effective zero cost of the smartphone will certainly impact and erode long-term profitability of telecom companies and cable operators.
"Stock prices of these companies impacted by Jio are likely to underperform in the near to medium term. It is better to avoid them and not do bargain hunting as long as predatory strategies are alive," he said.
Sushil Choksey of Indus Equity Advisors said the company may roll out 260 million handsets in the first year, assuming the demand is full. "It would in that case bring in Rs 39,000 crore deposit," he said.
The caveat is that subscribers would pay Rs 1,500 upfront, which would be fully refundable after three years. As the AGM progressed, RIL shares came off the day's high, only to rebound later on the news of bonus share issue.
Mukesh Ambani, Managing director and Chairman of Reliance Industries, told the AGM that JioPhone will be available for user testing in beta from August 15 and for pre-booking from August 24. Ambani said his firm was looking to roll out 5 million phones every month.
Vikas Agarwal of OnePlus India said each and every service that Jio is offering is directed at users utilising their services.
"A lot of these services are traditionally offered by the global brands like YouTube or other technology services. Jio has to somehow figure out a way to get into the mix and with the free bundled data plan it plan to offer, it expects users to start using Jio services. I think other telecom players also have to move into services on data and not just on the telecom services," Agarwal said.
Jimeet Modi CEO, SAMCO Securities said one operator's gain is other's loss in the telecom space and effective zero cost of the smartphone will certainly impact and erode long-term profitability of telecom companies and cable operators.
"Stock prices of these companies impacted by Jio are likely to underperform in the near to medium term. It is better to avoid them and not do bargain hunting as long as predatory strategies are alive," he said.
Sushil Choksey of Indus Equity Advisors said the company may roll out 260 million handsets in the first year, assuming the demand is full. "It would in that case bring in Rs 39,000 crore deposit," he said.
Jio has, on an average, added 7 customers per second every single day over the past six months. This has been the fastest adoption of any technology service anywhere in the world. Overall, Jio has over 125 million customers.
Nitasha Shankar, Senior Vice-President and Head of Research, YES Securities, said the announcement on service offerings and the new phone would continue to act as a disruptive force for the telecom industry, which is already reeling under pricing pressure due to Jio's aggressive pricing plans.
Nitasha Shankar, Senior Vice-President and Head of Research, YES Securities, said the announcement on service offerings and the new phone would continue to act as a disruptive force for the telecom industry, which is already reeling under pricing pressure due to Jio's aggressive pricing plans.
"The announcements of JioPhone and TV would also hurt the cable TV industry. The industry had seen top line and bottom line come under pressure due to on-the-ground issues related to the rollout of digitisation. While digitisation is a long term positive for the industry, it would take the next couple of quarters for the benefits to start reflecting in the earnings.During such times, if Reliance were to launch the Phone-TV, it could lead to disruption on the pricing side," She said.
Reliance just launched its new feature phone, called as the JioPhone. Although the handset has been introduced by the company chairman Mukesh Ambani at the 40th Reliance Annual General Meeting, there is still some time before users can get hands on it.
The JioPhone, as Ambani said, will be hitting the shelves in September. The company has not yet announced the exact date yet. However, you can still book your JioPhone before September.
Reliance just launched its new feature phone, called as the JioPhone. Although the handset has been introduced by the company chairman Mukesh Ambani at the 40th Reliance Annual General Meeting, there is still some time before users can get hands on it.
The JioPhone, as Ambani said, will be hitting the shelves in September. The company has not yet announced the exact date yet. However, you can still book your JioPhone before September.
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