Jio’s feature phone hits Vodafone revenue

New Delhi: The country’s second largest telecom player Vodafone expects Jio’s ‘effective free phone’ with unlimited calling to erode operators’ revenues which are already under pressure and sought reduction in various levies imposed by the government as a breather to the industry.

“…the new operator continues to aggressively under-price its services, including announcing launch of ‘Effective Zero Price Feature Phone’ with unlimited voice.

“This is likely to cause further erosion in revenue for existing operators,” the company in a letter to the Telecom Commission Member (Finance) Anuradha Mitra

RIL Chairman and MD Mukesh Ambani recently launched JioPhone, a 4G feature phone at a one-time fully refundable deposit of Rs. 1,500 per unit. Jio is slated to beta-test the low-cost phone from August 15. The booking will start from August 24 online as well as through Reliance Retail and Jio stores.

Vodafone said there is continuous decline in its revenue from telecom services and it has recorded further decline of 3.41 per cent in the the quarter ended June 2017

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