Reliance Jio in talks to make sub-Rs 2000 4G phones: Report

Indian telecom's newest entrant Reliance Jio is in early talks with Chinese manufacturers for a sub-Rs 1,500 4G LTE feature phone, according to various media reports.

The telecom arm of Reliance Industries is believed to be in discussions with Chinese firms including Techchain, FortuneShip and Uniscope.

The move would make sense for Jio as the company’s 4G SIM cards are not compatible with 3G smartphones. Also, with low prices, the new phone can further increase Jio’s customer base of more than 100 million.

Currently, on an average, a 4G smartphone costs around Rs 3,000. However, some of Jio’s Lyf Flame 4G smartphones are available for less than Rs 3,000.

Domestic manufacturers such as Micromax and Intex are also working on sub-Rs 2,000 4G smartphones.

According to a report in the Financial Express, Jio has sought some engineering samples for 4G smartphones from Chinese contract manufacturers.

Till now, Jio was following a model where once commercial orders are placed, the handsets will initially be imported, but manufacturers will later have to make the handsets within the country.

The feature phones market – which doesn’t have many low priced 4G phones – could see Jio grabbing more share if it starts producing affordable phones.

According to another report in the Economic Times, Chinese mobile chip company Spreadtrum Communications is planning features phones that could reduce prices by nearly half.

"We are working on a technology that makes a Rs 1,500 4G feature phone viable. We have already started concept promotions to our partners," Spreadtrum Communications' country head Neeraj Sharma told ET.

Spreadtrum currently has a two-year partnership with Reliance Industries.

Disclaimer: Reliance Jio is owned by Reliance Industries, who also own Network18, the publisher of Moneycontrol.