Airtel mulls co-branded smartphone deals to take on JioPhone Next

JioPhone Next, widely expected to be among the most affordable smartphones, may attract Airtel and Vodafone Idea’s 2G users

In a bid to protect its 2G user base, Bharti Airtel is mulling co-branding smartphone deals with handset makers and bundled data and voice offers to bring down the effective price of a smartphone ahead of the JioPhone Next launch, according to a report by The Economic Times.

JioPhone Next, widely expected to be among the most affordable smartphones, is likely to attract Airtel and Vodafone Idea’s 2G users to its network with an affordable 4G smartphone. However, the Sunil Mittal-led telecom operator is planning to steer clear of handset subsidy game to ring-fence its 12 crore 2G subscribers, sources told the publication.

Airtel has reportedly floated a request for proposal (RFP) for handsets. Manufacturers including Lava, Karbonn and HMD Global have already readied possible devices and specifications, sources added.

DH independently could not verify the report.

Airtel is also said to be looking at specifications for a possible smartphone in tie-ups with handset brands but is awaiting Jio’s pricing and offers. JioPhone Next is in advanced trials and its festive season rollout will commence before Diwali.

"Airtel’s device offering is ready but the question is subsidy and if they would be able to match Jio’s offering. Airtel has sorted out specifications but it will be difficult to match the pricing with subsidy for them… but it will come up with an offering," a source told the publication.

Airtel chief executive Gopal Vittal had recently said that the handset subsidy route was not the right one, adding that Airtel had clarity on “how to deal with this (JioPhone Next)”. Highlighting the company's pilots with original equipment makers (OEMs) for affordable handsets, he said, "...it is a competitive industry, we will look at what happens in the marketplace through a combination of good marketing optics and capability and platforms around locks."

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