Report, Telecom News, ET Telecom

Report, Telecom News, ET Telecom

According to US-based venture capital firm Spark Capital, Jio could achieve a 5G subscriber base of 12/21 million and an average mixed income per user (ARPU) of Rs 188.208 at FY24E/FY25E.

New Delhi: Reliance Jio is likely to price its 5G smartphone in the range of Rs 8,000 to Rs 12,000, once the company achieves extensive 5G coverage in a bid to lure 4G smartphone users in the market to the 5G network and further cement its leadership, according to a report Issued by Counterpoint Research.

The research firm added that this strategy is similar to what Jio did with the Jio Phone Next 4G smartphone, co-developed with Google, by attracting “hundreds of millions of premium 2G phone users to its 4G network”.

A two-pronged strategy will be central to Jio’s growth and expansion of leadership in the 5G era as well. Moreover, sometime in 2024, Jio will also have to launch an affordable 5G mmWave+ sub-6GHz smartphone as the delta of cost between the two has shrunk dramatically from an overall BoM (list of materials) perspective,” the research firm said on Monday.

At the 2022 AGM of Reliance Industries Limited (RIL), Chairman Mukesh Ambani said Jio aims to launch 5G network in four metro stations – Delhi, Mumbai, Kolkata and Chennai by Diwali and achieve pan-India coverage by December 2023. Meanwhile , revealed plans to launch 5G phones at very affordable prices in partnership with Google, although no details regarding the price or launch schedule were revealed.

According to US-based venture capital firm Spark Capital, Jio could achieve a 5G subscriber base of 12/21 million and an average mixed income per user (ARPU) of Rs 188.208 at FY24E/FY25E.

The carrier is expected to price its 5G tariffs at a 20% premium over 4G tariffs, according to the venture capital firm.

Jio has leveraged partnerships with companies like Qualcomm, Samsung and AI-startup Syntiant, along with Korean and Chinese suppliers to keep component costs “disruptive BoM” at around $58 (~Rs 4,730) for JioPhone Next, Counterpoint said.

According to a BoM analysis by Counterpoint Research, memory (22%), followed by screen (21%) makes up the largest share of BoM’s costs. Processing, sensors and connectivity each have an 11% share, while the battery and cameras each have a 9% share.

Jio may price 5G smartphone between Rs 8,000 and Rs 12,000: Report

The JioPhone Next memory is provided by the South Korean company Samsung, the screen comes from Chinese TXD, the processor is from Qualcomm, and the NPU comes from Syntiant.

South Korea’s SK Hynix is ​​the supplier of the camera, and the battery is supplied by Guangdong Fenghua NEW Energy CO., LTD.

The affordable 4G smartphone is manufactured at Jio’s Neolync facility in Tirupati and Sriperumbudur.

“Standalone mode (SA) needs upgrade Core/transport upgrade cost assumed to be Rs. 250 billion (~13%). While spectrum makes up 43% (~Rs 0.9 trillion), cash flow is spread across 20 years. We see no need for towers Filling in the first 3 years of publication.The cost of the 5G life cycle (Spectrum + Infra + Opex) is estimated at Rs. 250 billion annually, the company said in a report on Thursday.

In India’s first 5G spectrum sale, Jio bought the highest amount of spectrum of 24,740MHz across the 700MHz, 800MHz, 1800MHz, 3300MHz and 26GHz bands, shelling out at Rs 88.78 crore.

In contrast, the second largest carrier Airtel picked up 19,867MHz of spectrum over the 900MHz, 1800MHz, 2100MHz, 3300MHz and 26GHz bands for a total of Rs 43,084 crore, while Vodafone Idea bought 6228MHz of airwaves over the 1800MHz bands. and 2100MHz, 2500MHz, 3300MHz and 26GHz for Rs 18,799 crore.

Newcomer Adani Data Networks captured 400MHz in the 26GHz band for Rs 212 crore, primarily for captive use.


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