Reliance is an important player in India's telecom business. During Reliance Industries' annual general meeting on August 29, 2022, Chairman Mukesh Ambani announced plans to launch an affordable 5G smartphone in collaboration with Google. This announcement was part of Reliance's larger ambition to create various 5G applications and devices, including a 5G cloud computer and Jio Air Fiber. This collaboration intends to transform the availability of 5G technology in the Indian market.
He also stated that the Jio 5G phone would be very affordable. Currently, various 5G phones on the market cost less than Rs 20,000. According to previous leaks, the Jio 5G phone could cost less than Rs 15,000.
Additionally, the business has formed a collaboration with Qualcomm, implying that the Jio 5G phone will have a Snapdragon chipset. Given its low price, the phone will likely use Qualcomm's Snapdragon 400 series CPU, commonly found in less expensive smartphones.
Meanwhile, the positive news is that Reliance Jio is planning to deploy 5G services this Diwali. This aligns with Airtel's ambitions to launch 5G services for its subscribers within the same period. Reliance Jio has said that key cities, including Delhi, Kolkata, Mumbai, and Chennai, will be the first to receive 5G services.
The RIL chief emphasized that Jio's ambitious 5G rollout plan aims to be the fastest globally. He also stated that, " Jio's introduction of 5G will bring fourth industrial revolution. This technology will enable connectivity for everyone, everywhere, and everything, offering the highest quality and most affordable data.
Jio has offered Rs 2 lakh crore to construct a countrywide 5G network in India. Ambani also stated that Reliance's consumption of renewable energy increased by 352 percent in just a year. Reliance's main goal is to become net carbon neutral by 2035.
Familiar Playbook Method
An affordable handset strategy has always been essential to Reliance Jio's approach. When it entered the telecommunications sector in 2016, it launched its 4G network and VoLTE 4G device, effectively resolving the economic discrepancy in the 4G handset market.With sales topping 100 million units, the launch was a complete success. While the following models of the phones did not perform as well, Reliance Jio's push compelled competitors to build low-cost, entry-level handsets.
This same strategy is applied to 5 G smartphones. The business is anticipated to complete its nationwide 5G network by the end of the year. However, the present mentality appears to be one of "wait and watch." According to sources, if Jio discovers a market gap for the 5G phone, it will introduce the device, but not this year, as its 5G network may not be widely available by then.
Google Investment For 5G
At the RIL AGM last year, Reliance Industries unveiled a significant investment of Rs 33,373 crore from technology giant Google into Jio Platforms, securing a 7.7% stake in the company. Mukesh Ambani, Chairman of RIL, underlined the need to transfer 350 million Indians from 2G feature phones to inexpensive smartphones as India prepares for the 5G era.Ambani stated, "We have sold 100 million Jio Phones to date, but a significant number of feature phone users are eagerly awaiting an upgrade to a conventional smartphone." We are convinced we can address this demand by developing an entry-level 4G or perhaps 5G smartphone. We believe we can create such a phone for a fraction of the present price. Google and Jio are collaborating to develop a value-engineered Android-based smartphone operating system," he said. The goal is to encourage all Indian users to upgrade from 2G mobile networks to 5G.
The Price Factor
5G is an expensive network deployment, and the only way to monetize it is through high-value subscribers as the network develops increasingly complex high-data applications. Over 200 million telecom consumers in India continue to use 2G services; inexpensive 5G appears to be a long shot.Reliance Jio is currently focusing on what it does well. Last month, it introduced another affordable 4G-enabled gadget, a feature phone priced at Rs 999, to transition most 2G users to the 4G network.
The combined effort between Reliance and Google to introduce a budget-friendly 5G smartphone represents a significant milestone in India's journey towards digital transformation. This initiative showcases the potential for collaboration between industry leaders and highlights the power of technology to drive inclusive growth and innovation on a massive scale.
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