HMD is committed to transitioning nearly 300 million 2G users in India to high-speed 4G networks by offering affordable Internet-enabled "Cloud Phones", according to a senior executive of the company.
HMD has partnered with US-based CloudMosa to provide its feature phones with a web browser-driven operating system (OS) capable of running multimedia applications such as YouTube, Facebook, Twitter, Wikipedia, and Radioline for streaming online radio channels.
Ravi Kunwar, CEO & Vice President - India & APAC for HMD, stated in an interview with ETTelecom, "The objective of the ecosystem here is how do we migrate these 300 million subscribers to a better user experience through cloud apps or multimedia apps?...the market data for the last one and a half years shows that our proposition to consumers is being accepted very well which is resulting in growth of share for us"
To recap, Reliance Jio, led by billionaire Mukesh Ambani, introduced its JioBharat 4G feature phone at Rs 999 in July 2023, aiming to attract over 250 million entry-level 2G mobile broadband users, particularly in rural markets. The telco subsequently continued with similar device launches.
Kunwar mentioned that while HMD and CloudMosa's initiative resembles Jio's efforts, consumer preferences will ultimately hinge on the user experience and back-end support for applications on the 4G-enabled feature phone. He emphasized that competition is beneficial as it simplifies the decision-making process for consumers.
HMD's range of Cloud phones comprises devices priced between Rs 1,999 to Rs 3,999. These keypad handsets offer UPI functionality, video calling, YouTube, Facebook, Google Assistant, and JioChat, and they are locked to the Jio network. On the other hand, 4G Cloud phones allow users to access applications and services hosted in the Cloud without requiring onboard storage or processing power.
Shioupyn Shen, Founder and CEO of CloudMosa, stated that the company is open to collaborating with any telecom operator in India on a revenue-sharing basis. He clarified that their partnership with carriers is primarily revenue neutral, with the device manufacturer being responsible for paying a nominal fee. Shen also mentioned that they are not pursuing any exclusive partnerships with carriers.
CloudMosa has established partnerships with device makers Itel, Snexian, Blackzone, and MT in India. According to Shen, the company's technology can significantly reduce the cost of a 4G feature phone by 50-80% compared to current options in the Indian market. This cost reduction presents a substantial opportunity to bridge the digital divide.
Currently, India accounts for over 80% of CloudMosa's global user base. The company has received backing from Morningside, GIC, Inventec, Lenovo, and Foxconn. Recently, Vodacom South Africa and Mobicel collaborated to launch a similar cloud-powered handset, priced at only $13.93. Analysts emphasize that the success of the Cloud phone approach is contingent upon reliable 4G network coverage, particularly in underserved areas.
Menka Kumari, an Analyst at CyberMedia Research (CMR), highlighted the significant opportunity for 4G feature phones to facilitate the transition from 2G networks, despite the increasing adoption of smartphones. CMR forecasts that 4G feature phones currently constitute approximately 30-35% of the overall Indian feature phone market. Jio and HMD have contributed to this growth by offering affordable connectivity options for users transitioning from 2G devices.
While CMR expects the growth rate of 4G feature phones to decelerate compared to smartphones, it anticipates that the 4G feature phone market may reach nearly 18 million units by 2025, maintaining a substantial share, especially in rural and semi-urban regions.
Source: ETTelecom