HMD Global is reportedly partnering with India's Vodafone Idea (Vi) to accelerate the adoption of affordable 4G feature phones in India by offering carrier-backed benefits, a top company executive said. The partnership, aimed at addressing affordability challenges in rural markets, is expected to be announced soon.
HMD–Vi partnership targets rural and low-income users
The handset maker also leverages Bharat Sanchar Nigam Limited’s (BSNL) distribution network to sell devices across villages and rural regions. According to the report, unnamed analysts estimate India has nearly 250–300 million keypad phone users, underlining the scale of the opportunity as the market transitions from 2G to 4G.
“We will have very strong tie-ups with the likes of Vodafone Idea as well, as we move forward in the low-cost 4G feature phone space. While we at HMD have addressed the price entry barrier as far as the device is concerned, the cost can still be prohibitive for Indian consumers in the rural market,” Ravi Kunwar, vice-president (VP) and CEO, HMD India and APAC, told ETTelecom.
“The partnership between HMD and Vodafone Idea will work on that (price for 4G feature phones),” he added.
Vi grapples with ongoing subscriber losses
The proposed collaboration comes at a time when Vi is struggling to arrest month-on-month subscriber losses despite offering plans that include Hero Unlimited, NonStop Hero, or Super Hero benefits. There have been no major updates on Vi’s 5G rollout since its last 5G launch announcement in Dehradun in September 2025.
Vi’s newly onboarded CEO, Abhijit Kishore, recently said the telco increased its 4G population coverage to over 84 percent as of September 2025, up from nearly 77 percent in March 2024, alongside a 38 percent expansion in 4G data capacity.
Feature phone market remains competitive
According to the report, HMD’s push is part of its broader strategy to grow 4G-enabled device sales in India. Last year, the company partnered with CloudMosa to equip feature phones with a browser-led operating system capable of running multimedia applications over 4G networks.
The segment remains competitive, with Reliance Jio having launched several 4G-enabled JioBharat devices priced as cheap as Rs 1,000 as part of its efforts to eliminate 2G usage in the country.
India’s feature phone shipments
Kunwar reportedly said HMD continues to work closely with telecom operators, including the state-run BSNL. “We have designed the product, which is compatible with any operator here in the country, and we work closely with their (BSNL) distribution network in the villages to promote our product,” he said.
According to data cited by CLSA from the International Data Corporation (IDC), India’s feature phone shipments rose 11 percent quarter-on-quarter to 12 million units in Q2FY26, even as 4G feature phone shipments declined 4 percent sequentially and 41 percent year-on-year to 1.9 million units, the report added.
BSNL distribution and government-led 4G expansion
Despite the broader market trends, Kunwar remains optimistic about the 4G feature phone segment. He said growth is being supported by the government’s push to expand BSNL’s 4G infrastructure nationwide. HMD, backed by its own brand and Nokia-branded feature phones, expects to achieve volume leadership in the segment by the end of Q1 2026.
"We introduced a string of affordable 4G models. This was in line with what the government is rolling out, particularly BSNL, in terms of 4G towers across the length and breadth of the country," Kunwar was quoted as saying.
HMD bets on affordability
“We believe that affordability is still a big challenge, and there is a sizeable market out there in this price range, which HMD is in a powerful position to cater to," he reportedly said.
Alongside feature phones, the company will continue to focus on smartphones priced between Rs 10,000 and Rs 15,000, a segment it believes still offers significant demand amid ongoing affordability challenges.
Also from HMD:
Cheap Phone Launch: HMD to Launch New Sub-Rs 10,000 5G Smartphone in India
D2M Devices Partnership: Lava, HMD Partner Tejas Networks, FreeStream to Launch Direct-to-Mobile Devices in India
