In rural India, where many are still using 2G phones for voice calls, Reliance Jio is offering a solution with its new $12 internet-enabled feature phone. The phone aims to bridge the digital divide between urban and rural India by providing a cheaper alternative for non-smartphone users to switch to 4G mobile networks. With an estimated 250 million feature phone users in India still stuck in the 2G era, Reliance Jio hopes to attract these users with its affordable monthly plans and seven times more data compared to other telco companies. The Jio Bharat phone is designed to be a simple, entry-level device for first-time internet users, allowing them to experience key services like digital payments and content through Jio’s ecosystem. Eventually, Reliance Jio hopes that these users will upgrade to more advanced phones. Other telco companies may not significantly drop their prices to compete with Reliance Jio, but they will need to create new customer experiences and product bundles to increase customer retention. Despite challenges, India is on track to become a major market for 5G by 2026, surpassing even China. The country has already demonstrated its ability to leapfrog developed nations in terms of technology adoption, as seen with the widespread use of digital payments.
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