 "People queuing for Jio sim card outside Reliance Digital Express store in Lucknow")
The internet is flooded with images of consumers across India queuing up to avail of Reliance Jio’s preview offer, which is now available to nearly 68 million 4G handset users in India. The company is in talks to extend the preview offer to all the users of Micromax and TCL 4G smartphone users, too, after opening it up to users of Samsung and LG phones.
Around 90 per cent smartphones in India are dual-SIM devices and Jio wants to be the second SIM on smartphones to give users of these devices a superior data experience. However, these devices will have to be voice-over long term evolution (VoLTE)-enabled as Jio will offer voice services on LTE and not through the traditional circuit switch route.
Last week, the company delinked the preview offer from the sale of devices. It is now offering free data and voice for three months to all Samsung and LG smartphone users. While the company has expanded the trial offer, analysts say only a small number of 4G-enabled smartphones in India are capable of delivering voice on VoLTE. According to Bank of America Merrill Lynch estimates, a very small number of smartphones will currently work on the Jio ecosystem (less than five million), as less than three per cent of the smartphones have VoLTE capability.
Last week, Jio expanded its preview offer to all users of Samsung, LG, Asus and Panasonic LTE smartphone users. According to analysts tracking the smartphone market, there were 68 million 4G handsets in India at the end of June. A majority of the 4G smartphone users are now eligible to avail of Jio's trial offer. On Tuesday, the company extended the offer to all 4G smart phones from Panasonic and Asus.
By expanding the preview offer to users of LTE devices, Jio has expanded its addressable market substantially.
Till recently, Jio's preview offer was available to consumers who were buying a new device. All signs point to the company's readiness to absorb a large number of subscribers on its network. Sources within the company suggest the firm's network has been tested with the three million-odd subscribers who have signed up for the trial preview offer. According to CLSA, several indicators suggest a strong possibility of a commercial launch of Jio’s services within the next three months.
