Why success of ‘LYF’ is critical to the success of RJio

Traditionally Indian telcos have shied away from venturing in the devices segment. They have hardly ever aped the western model of bundled devices. Predominantly, this is because of extremely low Average Revenue Per User (ARPU), high churn and dominance of pre-paid users.

  • Make Telecom Talk My Trusted Source
  • Source of Google
  • Source of Google

JIO Logo

Now the new kid-on-the-block, Reliance Jio seeks to change this. Because of new technology it is almost imperative for the company to focus on the devices as well as its retail channel.

The new 4G technology means that a significant chunk of mobile users subscribers do not own a 4G device. However RJio subscriber is going to need a VoLTE device (not just any 4G device) to experience `True 4G’. As of now the device manufacturers have been focusing on 4G devices and not so much on VoLTE devices. However, RJio believes that VoLTE is what is going to differentiate its services from other 4G networks of Airtel, Vodafone and Idea Cellular. VoLTE is believed to offer enhanced services and better voice quality to the subscribers.

It can be said that the success of the venture depends on whether the subscriber experiences what RJio believes to be differentiated services and a subscriber can do so only if he/she owns a VoLTE device. It is not surprising that success of LYF, devices brand to be launched by RJio, is critical to the success of the latter.

The retail strategy and the pricing of the devices is thus of immense importance and can be the reason for the success or failure of RJio itself. So it is not surprising that the company is leaving no stone unturned before launching LYF branded handsets. Besides, its own brand, RJio has also tied up with Micromax, LG, Intex and Lenovo. Strangely, big brands like Samsung have decided to stay away from devices venture of RJio. (See: First Look And Feel Of Reliance VoLTE Service.)