Reliance unveils zero cost 4G phone, aims to further disrupt telecom sector

Reliance Industries launched on Friday a keenly anticipated phone with 4G-enabled features that it said will be "zero cost", in a move aimed at further disrupting the country's highly competitive telecoms sector.

Through the new phone, India's most valuable company is attempting to woo tens of millions of low-income users to its upstart telecoms venture Jio, which has already upended the telecoms industry in the country by offering cut-rate prices on its services.

Buyers will be able to get the new device, named JioPhone, for a one-time refundable security deposit of 1,500 rupees ($23.32), Reliance chairman, billionaire Mukesh Ambani, said at the petrochemicals-to-retail conglomerate's annual general meeting (AGM).

Voice calling will be free on the JioPhone, while unlimited data packs will cost 153 rupees a month on the device, Ambani said.

The phone will be available from August 15, India's Independence Day, on a trial basis.

Reliance plans to make 5 million JioPhone available every week.

About 65 percent, or 500 million, devices in the Indian mobile phone ecosystem are so-called feature phones - that allow basic calling and texting, according to brokerage CLSA. These phones still outsell smartphones.

Jio calls its new device "India's intelligent smartphone".

The phone's launch was widely anticipated as Ambani, India's richest man, uses the company's annual meeting to make key launch announcements. Jio was launched at last year's AGM and now has more than 125 million customers.

Reliance shares traded 3.1 percent higher on Friday afternoon, while shares of rivals Bharti Airtel and Idea Cellular fell 2.9 percent and 6.2 percent, respectively.

Mukesh Ambani-backed Reliance Industries has launched the JioPhone for free during the 40th annual general meet that was held in Mumbai on July 21. The feature phone with smartphone alike features will go on testing beta phase starting August 15 and the preorder will begin starting August 24. The phone will go on sale in September to users who prebook the device. ( The details on how to pre-book with device have yet not been shared by RIL).

Even though the phone is effectively free, there is a catch in the form of one-time security deposit fee of Rs 1,500, which is refundable only after 36-months, that the user need to pay.

In a bid to bring the 50 crore feature phone customers of India on to Reliance Jio network, the company launched the phone with cost-effective tariff plans. Reliance Jio is offering free voice, data, Jio apps and SMS to its users at a monthly recharge of Rs 153. Jio will also offer a weekly Rs 54 plan valid for 7-days and Rs 24 plan valid for 2-days with the purchase of the phone. Both these plans come with free voice, data, apps and SMS.

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