NEW DELHI: Telecom operator Reliance Jio has opened its low-cost 4G feature phone recharge plans to rival devices after the Telecom Regulatory Authority of India (Trai) flagged device-specific tariffs as “discriminatory”, according to people aware of the matter and changes seen on the company’s website.
The move, analysts said, could widen Jio’s reach among feature phone users but dilute one of its key customer lock-in advantages.
The change means users of 4G feature phones with physical keypads from brands such as Nokia, Lava and itel can now access Jio’s low-cost recharge plans that were earlier restricted to its own JioBharat and JioPhone devices.
The move follows Trai’s March directive asking Jio to stop certain tariff practices that the regulator said violated transparency norms and disadvantaged consumers. “(D)evice-specific tariffs are treated as discriminatory and disadvantageous to the consumers as the offered tariff plans can be accessed only upon purchase of particular make/technology device,” Trai said.
Jio communicated compliance with Trai’s March 24 directions to the regulator a few weeks ago, according to two people aware of the matter. The regulator is currently reviewing the company’s response.
Queries emailed to Trai and Jio on 11 May did not elicit any response till press time.
JioBharat and JioPhone are low-cost 4G feature phones from Jio that come bundled with special recharge plans. The company launched its first 4G feature phone, JioPhone, in 2017 with a refundable security deposit of ₹1,500 to drive migration from 2G to 4G networks. In 2023, it launched the upgraded JioBharat at a starting price of ₹999, which the company had described at the time as the “lowest entry price for an internet-enabled phone".
JioBharat phones are now available from ₹699 onwards across models, according to the company’s website.
“JioBharat is continuing in the market and the company has now discontinued the JioPhone, with only some older models remaining. The company will also reach out to other 4G feature phone makers to have their devices integrated with Jio systems for tariff plans availability,” one of the two people, cited above said, on the condition of anonymity.
Beyond lock-in
Jio has introduced pricing for its 4G feature phone plans at ₹123 for 28 days, offering 0.5 GB of data per day, unlimited voice calls and 300 SMS messages, according to information on the company’s website. This is similar to the JioBharat phone recharge plans offering.
In comparison, rival operators’ entry-level 4G pricing starts at ₹199. Earlier this year, Vodafone Idea introduced an offer in partnership with HMD under which new users buying select HMD and Nokia feature phone models get 2 GB of data and unlimited calls at ₹140 per month, subject to a mandatory first recharge within 30 days of SIM activation.
“The decision to open Jio’s 4G feature phone plans to users of other operators is a significant step towards making network access more equitable across the entire 4G feature phone consumer base,” said Sumit Singh, senior vice president and head of product at Lava International. “This move will particularly benefit users at the grassroots level, irrespective of their handset brands.”
In India, the feature phone to smartphone conversion has slowed. People are holding on to feature phones as the delta between feature phones and a good entry level smartphone has reached an all time high. By opening 4G feature phone plans to users of other operators, Jio will be able to increase its user base in a market which is still a sizable chunk,” said Tarun Pathak, research director at Counterpoint Research.
According to estimates from Counterpoint Research, India has a feature phone base of around 220 million users, of which the installed base of 4G feature phones stands at 35-40 million. HMD holds more than 70% share of the 4G feature phone market, while JioBharat devices account for around 17%.
“While the move will make Jio lose its device lock-in advantages, it can still tap in more subscribers with its cheaper 4G feature phone offers,” said Faisal Kawoosa, chief analyst at market research firm Techarc, adding that any loss in handset revenue would likely be marginal as the company’s primary objective was to gain 4G subscribers.
Trai had also raised concerns over Jio not making certain tariff plans available uniformly across offline stores, apps and websites. Last year, Jio discontinued some entry-level prepaid recharge plans offering 1 GB data per day, saying they would be available only through its retail stores.
The regulator had asked the company to publish all tariff offerings, including the ₹249, ₹199 and ₹209 special tariff vouchers, across all platforms.
Jio has told Trai that it has since discontinued the 1 GB tariff plan from offline stores and made the required changes to ensure uniformity, according to the people cited above.
