Ravinder Takkar: Vodafone Idea won't Subsidise Devices to Counter JioPhone Next

Vodafone Idea MD Ravinder Takkar said that the telco won't look subsidize devices to counter the JioPhone Next. The Jio-Google joint smartphone will retail at an ultra-affordable price point.

Won't Counter JioPhone Next - Vodafone Idea

Takkar said that heavily subsidizing a smartphone takes the customer's choice away to choose a price point and specifications. He added that letting the customers have their say is the right way to do it.

During a investor call on Friday, Takkar said, "the best option for us to make decent smartphones available to our customer base is that If the OEMs as well as NBFCs allow our customers to purchase these smartphones in a manner which is financially suitable for them, which is by instalments...they can also buy used phones through our programmes in instalments".

The MD further said, "then on top of that, potentially subsidising it. And so you have to put a lot of money on the table, to say I will pay to subsidise this much to where you get the phone, I think, in our view, is not providing the right choice to the customer".

The comments came after a question whether the JioPhone Next was a potential threat to Vi’s customer base. Last week, at the 44th Reliance AGM, Mukesh Ambani announced the JioPhone Next. Jio said that the phone will come at an aggressive price point, as it targets the 300 million 2G users.

The Vodafone Idea MD also commented on the price points in the Indian smartphone market. He said that only around 2% phones are sold at the sub-₹5000 price point. He further added that to truly experience 4G, customers want to use a smartphone made for 4G.

"That means, if you want to have a good experience on 4G, if you want to use a smartphone for things that it is made for, which is taking pictures, sending pictures, doing ecommerce, doing other social media type of activities, you need a quality smartphone, which unfortunately today, in whatever cheapest pricing that you do is more than ₹5000," Takkar said.