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After much speculation and plenty of leaks, Reliance Jio[1] announced its ultra-affordable 4G-enabled feature phone today. Called JioPhone[2], the device promises to bridge the digital divide in India once and for all. RIL chairman and MD Mukesh Ambani announced the Jio Phone at the company's annual general meeting today[3], and declared that the combination of low hardware cost, low service subscription cost, and high-speed connectivity will empower over 50 crore users in India who cannot afford even today's least expensive smartphones and data plans.

The JioPhone is effectively free, since buyers have to pay only a deposit of Rs. 1,500 which is refundable after three years. The lowest subscription cost is Rs. 153 per month[4], which gives users unlimited data, voice calling, and text messaging. The fine print is that while data is unlimited, speed is capped after 500MB each day. For Rs. 309, Jio Phone subscribers can get 1GB per day for 56 days[5], which works out to better value. On the other hand, users who can't pay even that much upfront can buy mini "sachet" Jio packs for Rs. 24 or Rs. 54, which offer similar benefits but only have two days/ one week of validity respectively.

Reliance Jio did not reveal detailed specifications. We know that it is a standard candybar[6] with a 2.4-inch screen, and supports storage expansion. Reliance did not confirm what operating system the JioPhone runs, but we do know that Jio apps including Jio Music, Jio Cinema and Jio TV will be preloaded. Initial observations suggest that apps will be supported[7] and that Facebook is one of them, but WhatsApp is not[8].

The...

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