According to a report by Emkay Global Financial Services, given the recent 2G tariff hike by telecom operators and limited availability of affordable feature phones, JioBharat is coming at the right time to accelerate the 2G to 4G transition and enable digital experiences for masses.
The Jio Bharat phone is expected to democratise internet access, enhancing these users’ economic prospects. With Jio’s network and distribution strength along with the device, Jio would be able to capture over 40 per cent market share, Emkay said.
Currently, a bulk of the feature phones in India don’t support quality data usage. As a result, a sizable population uses 2G services, and hence can’t use quality internet access, digital payment options, and avenues for entertainment.
“Over the years, this has led to a significant digital divide in the country, particularly between urban and rural areas. The divide has deepened over time, mainly due to the financial constraints faced by the rural population, making it difficult for them to afford basic digital services,” said an analyst, who asked not to be named.
With the government’s consistent push for digital payments, there has been a significant behavioural shift in our cash-driven economy. “The UPI system has grown rapidly and is now used by close to 300 million individuals and 50 million merchants. To fuel this growth, all panchayats across the country are being pushed to use digital payments for development work and revenue collection from August 15,” said the analyst.Thus, JioBharat, which supports, JioPay – a UPI-based digital payments app – can help the growth of digital payments in rural India.Brokerage JP Morgan said in a report that ‘Jio Bharat’ has the potential to disrupt the entry-level market. “We believe with this phone, Jio can take market share at the lower end of the market. This also puts Bharti at risk as it can see increased churn from its recent 2G price action of increasing the Rs99 plan to Rs155 plan,” said the report.
