This is the first of multiple partnerships that the company is lining up with mobile handset manufacturers to bring such bundled 4G smartphone options to the market, Airtel said.
While Mukesh Ambani-led Reliance Jio announced in July an Internet-enabled feature phone for a refundable deposit of Rs 1,500, Airtel said its partnership brings an "affordable" 4G smartphone to the market "effectively at the price of a feature phone".
The Android-based 4G smartphone, Karbonn A40 Indian, has dual SIM slots and access to popular apps like YouTube, WhatsApp and Facebook. The offer comes bundled with monthly recharge pack, cashback and data and calling benefits, it added.
More From This Section
But the cash refund benefit is contingent on consumer going in for recharges worth Rs 3,000 within the first 18 months (to claim the first refund instalment of Rs 500) and additional Rs 3,000 over the next 18 months (for second refund instalment of Rs 1000), it added.
The consumer will not need to return the handset to Airtel or Karbonn at any point to claim the cash benefit.
The alliance between Airtel and Karbonn is part of Airtels 'Mera Pehla 4G Smartphone' initiative, and more handset makers will be added to the program in due course.