Mumbai: Billionaire Mukesh Ambani-led Reliance Jio is set to launch the Google-powered Jio Phone Next on September 10 for an estimated price of Rs 3500, making it the world's cheapest smartphone to bring India's 300 million feature phone users online.


The company has tied up with leading financial institutions to offer the phone with an initial payment of Rs 500, as Asia's richest has set up an ambitious target of selling five crore phones with Reliance Jio sims till December 2021, making Reliance Jio, world's largest telco by subscriber base exceeding 500 million-plus subscribers, after China Mobile Communications Corporation. 


This means Reliance Jio will have to add over 40,6505 customers per day, replicating the success of "Monsoon Hungama 501" in 2003, which helped Relinace make "the world's fastest consumer acquisition."


Jio Phone Next Features


Jio Phone Next will use the Android OS specifically tailored for this device with 2GB and 3GB RAM options to customers. It will have language and translation capabilities, a fantastic camera with augmented reality filters, and support for Android updates.


JioPhone Next is packed with cutting-edge capabilities like Google Assistant, automatic read-aloud of screen text, and much more, all while being ultra-affordable.


The Qualcomm Snapdragon 215 CPU, which supports 4G networks, is believed to be included in the smartphone.


In terms of internal storage, Jio may release a 16GB and 32GB model.


The gadget is expected to have a 5.5-inch display with HD quality and come in various colors, including blue. 


GPS, eMMC 4.5 storage, and even Bluetooth 4.2 will be included in the smartphone's other features. 


Crucial quotes


Alphabet and Google CEO Sundar Pichai believes that the Jio Phone Next will open up new possibilities for millions of new users who will experience the internet for the very first time.


"Our vision is to bring affordable access to information for Indians in their own language, to build new products and services for India's unique needs, and to empower businesses with technology. Our teams have optimized a version of our Android OS, especially for this device. It will offer language and translation features, a great camera, and support for the latest Android updates," said Pichai. 


"Google and Jio teams have jointly developed a truly breakthrough smartphone that we are calling JioPhone Next. This is testimony to a global technology company and a national technology champion working jointly to make a breakthrough product. JioPhone Next will be available in the market from the auspicious date of Ganesh Chaturthi, 10TH SEPTEMBER, this year," said Reliance chairman Mukesh Ambani. 


Why are these 300 million feature phone users important for Jio, Google, and Facebook? 


Jio will have access to over 500 million customers, or half of India's mobile users when most feature phone customers are still out of digital inclusion.


With access to data of 500 million-plus users, Ambani may lure these users into buying groceries from JioMart, by ordering through Facebook-owned WhatsApp. 


By doing so, WhatsApp will further consolidate its position in India, with 390 million-plus users, already the world's largest. Its parent firm Facebook may push the users growing passion for Instagram Reels, a video-sharing platform, while Google will also gain access to useful information about users' locations and search queries.


Facebook last year invested Rs 43,574 crore for a 9.99% stake in Jio Platforms on a strong belief in India’s entrepreneurial talent and opportunity to help create meaningful impact for Indians and Indian businesses using their multiple platforms. 


In comparison, Google invested Rs 33,737 crore in the Mukesh Ambani firm for a 7.73% stake to upgrade the feature phone users to a smartphone. 


India is already home to Facebook’s most thriving communities on WhatsApp, Facebook, and Instagram. 


Alternate data for digital lending


The conversion of feature phone users to smartphones should not be seen as the only business opportunity for Jio. The Reliance firm is beyond a vanilla mobile service provider and counts itself as India's leading digital services provider, with a vision to propel India into global leadership in the digital economy. 


The data of 300 million feature phone users will be crucial, as even after having access to a bank account, they remain unbanked and hence out of financial inclusion. 


The Account Aggregator (AA) framework, developed by the RBI as part of the Data Empowerment and Protection Architecture (DEPA), aims to provide individuals authority over their data. 


Credit scores have played a significant role in consumer lending. While credit score awareness has increased in the previous five years, according to World Bank data, 300 million Indians adults are still not covered by any private credit bureaus, making them “credit invisible.” 


The AA network now includes eight major Indian banks (State Bank of India, ICICI Bank, Axis Bank, IDFC First Bank, Kotak Mahindra Bank, HDFC Bank, IndusInd Bank, and Federal Bank, accounting for 40% of India's banking consumers. 


This initiative heralds in India's open banking era, allowing millions of users to securely access and exchange their financial data across institutions over the internet.


Banks will never be able to match the platforms' clout when it comes to real-time data. The new telco data will help assess customers' credit who pay their bills on time to acquire a television on a reasonable "buy-now, pay-later" scheme. 


Besides, customers will escape being caught in the tech industry's biassed algorithms if they own and explicitly share their data. By combining everything from tax payments to client receipts, small businesses will show their cash flows to lenders. 


May replicate the success of Ant Group's digital lending. 


Ant Group Co. originated loans to half a billion people in China, accounting for about a fifth of the country's outstanding short-term consumer debt in June last year.


The astounding data, released in August 2020, revealed how Jack Ma's financial-technology behemoth has quickly risen to become one of China's largest originators of unsecured personal loans and why Ant is now under severe regulatory scrutiny.


It's no surprise that Google wants to influence India's deposit market, while Facebook wants a piece of the small business lending pie. The partnership between Jio, Google, and Facebook will be a win-win for all.