Shares of telecom service providers gained up to 7 percent on the BSE in today’s(1st Nov.2021) intra-day trade after RJio launched the much-awaited JioPhone Next. Jio Platforms (“Jio”), a majority-owned subsidiary of Reliance Industries (RIL).
JioPhone Next will be made available from November 4. The device is priced at Rs 6,499. However, the company is offering customers EMI options starting at Rs 300 per month with a down payment of Rs 1,999.
According to ICICI Securities, the pricing per se is not disruptive given the slew of smartphones already available in the Rs 5,000-7,000 range as well as the current mix of Rs sub 3,000 phone and sub Rs 100 ARPU paid by existing lower strata of 2G users. “We expect Jio move to target ARPU up gradation as well as retention of its own existing low-cost JioPhone users,” the brokerage firm said in a note.
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