Some Reliance investors may flinch at the cost of subsidies.
Reliance Jio has been reportedly subsidising at least 40% of the cost of its basic 4G phone, reported Reuters citing sources.
The report claimed that the JioPhone, which would be rolling out this week for a refundable deposit of Rs 1,500, will cost at least Rs 2,500 to assemble.
That means Jio will likely carry more than $150 million in costs for every 10 million JioPhones it sells.
And the company aims to build a subscriber base of between 250 million and 300 million users in the next two years, said one of the sources.
Reliance Industries did not respond to a request for comment.
Some Reliance investors may flinch at the cost of subsidies, but the scale of the outlay is a clear signal of the level of Jio's ambition, as it targets an audience of some 500 million who still cannot afford smartphones in India.
Jio's advanced voice over LTE (VoLTE) network only works with 4G enabled devices, inaccessible to many even at subsidised rates. The significantly cheaper JioPhone, however, will open the Internet to a less affluent segment of Indians for the very first time.
"The 3,000-rupee smartphone was not cutting it," the second source said. "Reliance is making a bold attempt with this phone and data will be the key driver for them."
Analysts estimate a majority of Indian feature phone users have an average revenue per user (ARPU) of Rs. 50 or lower. JioPhone's Rs. 153 monthly plan for so-called pre-paid users aims to drive up this ARPU, the first source said.
Jio, backed by India's richest man Mukesh Ambani, has amassed more than 128 million subscribers since its launch last year, by offering free voice and cut-price data for months.
Reliace Jio has started deliveries of its JioPhone, that had received pre-bookings of over 6 million units in August.
The deliveries will be completed within 15 days, according to a PTI report, citing a channel partner of Reliance Jio Infocomm Ltd (RJIL).
Deliveries of the low-cost 4G handsets will begin from rural areas and small towns before urban centres, the partner, who did not wish to be named, told PTI.
"The Chairman (Mukesh Ambani) had said that the JioPhone will bridge digital divide between rural and urban India. Therefore, delivery of JioPhone will start this Sunday in rural areas and small towns," the channel partner said. However, Reliance jio has not said anything over the latest buzz.
According to CyberMedia Research, a total of 61.8 million mobiles were shipped in the second quarter of 2017. With 6 million units of sale, JioPhone is estimated to account for around 10 percent of India's total mobile phone market in a quarter.
Reliance Jio Chairman Mukesh Ambani had announced that voice calling for customers of JioPhone would always be free and they would get unlimited data for a month against a payment of Rs. 153.
(With inputs from agencies)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "mukesh ambani")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}