Public telecommunications company BSNL has partnered with mobile handset manufacturers Lava and Micromax to create their own handsets with co-branded features in around Rs. 2,000 / -. They will be available with free gifts, including unlimited calling service. They will be launched in October.
The collaborative approach of BSNL
Strong competition in the telecommunications market has forced BSNL to move towards a more collaborative approach. The public telecommunication firm will engage with mobile manufacturers, Lava and Micromax to bring their own co-branded branded phones with aggressive call packs.
Feature phone with unlimited calling in Rs. 2,000 / –
The price of the brand’s next co-branded phones has been set very strategically. The 4G function of Jio costs Rs. 1500 and the next 4G phone from Airtel will cost around Rs. 2500. According to reports, both companies have calculated and calculated that the phones would cost around Rs 2,000 / – packaged with free unlimited calls.
The state-run operator has not yet revealed the initial spending figures on its new alliance. However, the two manufacturers will produce the co-branded phones exclusively for BSNL’s 10.5 crore subscribers scattered throughout India. The company has sold around 2.5 crore new SIM cards in the last fiscal year and has made mobile number portability (MNP) positive with about 7.5 lakh subscribers of rival networks.
Festive Market Advantage
The new alliance is a win-win situation for both state-owned telecoms makers and device manufacturers as their handsets will be launched ahead of Diwali, which will fall on Oct. 19 this year. According to the CyberMedia Research (CMR) survey, revenue from feature phones almost constitutes about 15% in terms of volume shipments. The feature phones account for almost 57% of the total mobile market in India.
Unlimited free calls is the title
The characteristic telephony market essentially falls into the voice call zone, and free calls remain an attractive proposition for semi-urban and rural consumers. A recent survey by the Mobile Marketing Association (MMA) and IMRB suggests that 85% of feature phone users do not want to switch to smartphones for their next purchase.
Manufacturers of locally manufactured devices take precedence
At a time when Chinese mobile manufacturers are ruling the phone market in the country, local phone companies Lava and Micromax have received the priority of BSNL. This will help them gain in the shipping rate with BSNL’s stable consumer base, where Chinese rivals Oppo, Vivo, Xiaomi, Lenovo and Gionee have taken up more than 50% of the mobile market. Approximately two years ago, Lava, Micromax, Karbonn and Intex enjoyed around 60% of the market share, where Chinese phone manufacturers have now surpassed a whopping 51% market share.
India is dumping ground for Chinese manufacturers
With an erosion of market share, manufacturers of local devices such as Micromax, Lava and Karbonn Mobiles have recently accused their Chinese counterparts of downloading low-cost smartphones in India, making it difficult to survive in the market. The recent collaboration between BSNL and Lava-Micromax will likely help the two local manufacturers with their shipping rate and market share.
The phone effect of the Jio 4G function?
The launch of Jio 4G Feature Phone forced other manufacturers and telecom operators to come with their own phones with cheap features. First Airtel, then Idea and now BSNL. Jio started a price war last year with his cheap plans offering unlimited free voice calls, which resulted in a major imbalance in the telecommunications market. His recent 4G phone has forced operators to rethink their policies and offers, and innovate for their existence in the market.
The collaboration will help both BSNL, Lava and Micromax to fight against Jio and Chinese rivals collectively! Will you buy these function phones from BSNL for free unlimited calls? Let us know in the comments below.