Idea working with handset-makers for less expensive cell phones

MUMBAI: Faced with the modern challenge of ultra-cheap 4G function cell phone from Reliance Jio, Idea Cellular today stated it’s miles operating with handset makers to deliver down the cost of handsets.

Also Read: JioPhone to harm Samsung, Micromax, Intex, Lava, Karbonn.

However, the Aditya Birla Group agency, set to be merged with bigger rival Vodafone, made it clear that it will not subsidize handsets.
“The practical answer that we’re running on is to work with the handset industry and paintings with them to carry down fee of handsets using bringing down the bill of cloth, so that the distance of the introduced price of Jio function telephone versus a smartphone may be brought right down to reasonable stages,” its Managing Director Himanshu Kapania informed analysts.

Kapania said the proper charge factor for a handset could be Rs 2,500.

In the past, the telecom operators had labored with handset makers once they were challenged via the then Reliance Infocomm’s cheaper handsets, he referred to.

“Given the fact that this (Jio statement) has occurred, and it’s far going to be allotted in huge volumes, our notion is that we want to work with the handset industry and introduce comparable phones within the marketplace,” he said.

This will be a “lower-priced smartphone” that allows you to permit customers to choose dual SIM, choose 2G and 4G networks, sign up with telecom operators of desire, and apply applications of preference, he said.

There might be tremendous marketplace research at the wide variety of features that can be added down, running gadgets and whether or not it should have the touchscreen, among others, he said.

Also Read: Reliance’s ‘free’ JioPhone shakes up reasonably-priced stop of India’s billion dollar-robust marketplaces.

“With the launch of 4G characteristic telephone, now not most effective the prevailing telecom operators get affected, it’ll upload a huge threat to the handset providers,” he stated, including that the biggest marketplace of 2G telephones will “vanish.”

“They (handset makers) believe the proposition will now not be robust enough if there may be no help from telecom operators.

“While we don’t have any aim to subsidize handsets, both handset producers and telecom operators need every different to ensure that the imparting to the consumer is robust enough when you have to choose a bundled provider and telecom operator with a locked handset,” he stated.

The telcos will assist the workout through their domain knowledge, needs of the customers, and distribution channels, he stated, including that monetary assistance is not required.

He conceded that margins might be squeezed in the system for the handset makers but pointed out that the larger volumes will offset it. For the telcos, bundled plans — wherein they promote handset at the side of voice and data plan — will help grow the average sales consistent with the user over a longer-term, he said.

Jio introduced a 4G characteristic telephone for a refundable deposit of Rs 1,500 last week.

Kapadia also said that the company is looking at more than one option of monetizing its tower assets and will look at all options, including an IPO for Indus Towers.

Idea working with handset-makers for less expensive cell phones 12

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