Post the Launch of Reliance Jio, the Sale of VoLTE Smart Phones Has Increased

Reliance Jio’s commercial launch marked the introduction of high-speed digital services and 4G-enabled smart phones in India. Devised to function as a comprehensive digital ecosystem, the company intends to act as a catalyst for the digital revolution in the country. It aims to contribute to the Digital India initiative spearheaded by the Indian Government.

A subsidiary of Reliance Industries (RIL), Reliance Jio opened its services to the public officially on the 5th of September, 2016. Prior to its pan-India launch, the company conducted extensive beta testing in order to ensure the efficiency of its network.

VoLTE smart phones

VoLTE is a technology that allows individuals to utilize both calling and data services on their smart phones without requiring their network to switch bands. It facilitates a seamless user experience and allows uninterrupted HD voice and video calling. Reliance Jio’s launch led to an increased demand for VoLTE-supporting cellular devices. Jio’s network is designed to only support superior VoLTE calling.

Industry experts stated that this technology is in much higher demand in rural areas than in bigger towns and cities. Additionally, these are also regions where the Reliance Jio Welcome Offer is being appreciated to a large extent.

The demand for VoLTE phones below the price band of Rs. 5,000 has increased. To support this, the smart phone market is also attempting to increase the production and retail of such devices at affordable rates. This is a stark difference from the earlier marketing strategy implemented with regard to the sale of VoLTE devices. At the beginning of 2016, such devices were exclusively placed in premium retail segments.

Increase in sales

In the quarter that ended in September 2016, the Internet searches for VoLTE phones had already experienced a 40% rise, according to the data provided by 91mobiles.com. Another report by Cybermedia Research stated that the September quarter witnessed double the sale volume, resulting in the shipment of more than 14 million such devices in India. Most market vendors are expecting the new range of smart phones to support this new technology.

Tarun Pathak, the Senior Analyst at Counterpoint Research, stated that the market is expecting VoLTE to become a default feature in upcoming smart phones. He explained how the average selling price of such devices would penetrate the Rs. 3,350 price band, thereby helping generate a large volume of sales in the price-sensitive Indian market.

Pankaj Rana, Head of Smart Phones Business at Panasonic, explained that the company’s Diwali strategy focused on making all its current 11 4G models VoLTE-enabled. He stated that while customers belonging to the lower tiers did not fully understand the benefits of this technology, they are beginning to prefer it nonetheless. Tier I and II consumers, however have realized that VoLTE will allow them to experience quality HD voice calls.

Although initially, 4G technology was becoming a norm in the Indian smart phone market, Mukesh Ambani led Reliance Jio was one of the first brands to introduce VoLTE technology. The company’s price-sensitive marketing strategy and services have brought about a transformation in the telecom industry.

Summary

Reliance Jio’s commercial launch has led to an increase in the demand for VoLTE-compatible smart phones in the Indian market.

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