[iVento]

RCom to offer new iPhones for Rs 2,599 under 2-year contract

Apple Inc seems to have finally cracked the mobile handset subsidy model in India. The world’s second-largest smartphone maker has signed a deal with Reliance Communications wherein a user will get the 16GB iPhone 5c and iPhone 5s at zero upfront cost.

The telecom company will offer unlimited voice calls, SMS and 3G data for a fixed monthly fee ranging between Rs 2,599 and Rs 2,999. The subscriber will be locked in to RCom’s network under a two-year contract.

Dishonour fears

This is the first time an Indian telecom company is subsidising an iPhone, although Apple has been trying to convince operators for a while. Indian operators have so far stayed away from this model fearing that subscribers will dishonour the contract by unlocking the phone for use on another operator’s network or to resell it in the grey market.

Since more than 90 per cent of the Indian mobile phone market consists of pre-paid cards, operators have been wary of tracking down defaulters.

RCom has dealt with the problem by restricting the subsidy offer to credit card users, thus putting the onus of subscriber verification on partner banks, including ICICI Bank and HDFC Bank. An RCom spokesperson declined to comment, but industry sources said the company will announce the offer on Friday.

Under the scheme, the 16 GB iPhone 5c, priced without subsidy at Rs 41,900, will be available for a monthly fee of Rs 2,599 while the 5s, priced at Rs 53,500, will be on offer for around Rs 2,999 a month. The 32GB version will come with an upfront fee of Rs 10,992 for 5s and Rs 11,600 for 5c in addition to the respective monthly charges. The 64GB model will be on offer for an upfront fee of Rs 19,992.

While iPhone is also available through equated monthly instalments, RCom has sweetened the deal by bundling in unlimited voice and data plans along with the device for a two-year period.

Rival operator Airtel will also start selling the new iPhones from November 1 but is unlikely to offer a subsidy.


RCOM: http://www.rcom.co.in/iPhone/iPhonePeelCover.html

Source: http://www.thehindubusinessline.com/...cle5301772.ece

[DRIV3R]

It is available only in the following locations + Siliguri.

I guess RCom is testing the waters by introducing only in North India for now.

[aroop]

A bold move. It is RCOM's second attempt at selling phones under contract (remember the early days of RCOM - the Reliance India Mobile)?

It is interesting that the subscriber verification is on banks, and probably risk too (the customer unlocking the phone, not paying for full 24 months) is transferred to banks. Then isn't this akin to the EMI schemes offered against credit cards by banks which RBI had quashed?)

For the end customer, its a good deal. Ignoring the interest part, the customer pays approx 62400 over the period of 24 months, while the upfront 41900 (for the 5c). This translates to Rs 20500 or Rs 854 / month for unlimited voice and 3G data. Quite attractive!

Clearly, RCOM is buying these phones at quite a low price. A win win situation!

[drmohitg]

I have been thinking about this deal seriously. Only thing holding me back is the lack of connectivity options in the Apple I phone specially the absence of the Bluetooth function.
Otherwise the deal sounds great. Reliance network is excellent and as good as the other leading service providers like airtel. Total payment at end of 2 years for the 16 gb 5s model is 72k. But my current monthly bill comes to around 1200 rs. So that comes to around 28k in 2 years. Hence effectively I am paying them only 43k approx with the added advantage of unlimited free Calls, SMS and 3G connectivity. Unable to find a fault with the deal for someone who is planning to buy the 5S.

[pradyblr]

Newspapers report that Airtel, although not offering any monthly scheme, is out of stock already of the phones. Such has been the demand.
Maybe, in hindsight, this was a bad strategy by RCOM? Why offer EMI if there are people queueing up to pay the entire amount upfront?

[ninjatalli]

Guys,
Please understand this is not the "contract" model we get overseas.
- You need a credit card that has a credit limit more than 63k (for 5c) and 72k (for 5s)
- The funds in the card are blocked and the repayment schedule created on a monthly EMI basis
- Read somewhere that the interest component is 15%
- Unlike the contract model, even if there is a newer model available or you want to quit the plan, the EMI continues
- Not sure if the phone comes 100% unlocked i.e. say you want to sell off the phone to someone else
- Do note the market price for the same phone is a lot cheaper than what you are eventually paying for the phone+plan out here
- Basically Reliance is getting overpaid for the iphone upfront with a credit card company coming in the middle
- Reliance might be offering unlimited calls, sms (upto 3000 per month) and 3G - but a lot depends on how good the Reliance service in your area(s). MNP is of no use out here.

The only options where I really see this as a good buy (assuming good Reliance network in your areas)
1. Your current monthly bills are quite high (>2000)
2. Your company pays your monthly phone bills (with a max limit more than 2-3k)
3. You are a die-hard Apple fan

[itwasntme]

Consider this offer a good option for someone who is considering an iPhone ANYWAY, will DEFINITELY keep it for 2 years AND is a heavy user of BOTH sub-components, i.e. voice (including high roaming) AND 3G data.

My take is that most middle class buyers will probably have minimal issues with 72k being blocked on a credit card. For example, I had earlier bought a Samsung 80k side-by-side fridge from eZone via a 24 EMI deal (discounted price + 0 processing fees + 0% interest), so why worry about a phone?

Does the scheme cover bundled insurance if there is accidental damage to the phone etc.? This is important even if on a co-pay basis.

Personally, can't stand iPhones plus there is always the Reliance 'unreliability' factor in my head, so steering clear!

[VW2010]

Iphones getting sold out while the public is fighting for onion price drop. What an extreme set of financial inequiality

On a lighter note, on hearing the cost of the 64GB my friends said, he would rather buy a bike and go to the person he was planning to talk to and actually have a face to face conversation. But jokes apart, the phone is extremely over priced and 74K on a phone to me looks so bad that i am already feeling bad i am using a smart phone costing close to 25K. Damn those temptations and now damn those money wasted on the phone.

But RCOM is the last operator i would want to build a contract with and having a 2 year contract in this world of changing scheme and changing speed is just too much.

I have already bought a Nokia 1100 as my main phone for work to avoid being contacted via whats app and what not and get back to the basics of call and messaging.

I will love to have a iphone 5S if its rate is somewhere around 30K though . Irony of wanting to not spend and spend.

[Jaggu]

I think this is the right step, its high time other operators offer the same.

See i average around 700 Rs per month on bill and i would definitely upgrade my current iPhone 5, if airtel offers the same scheme. But without the scheme i would be more than happy to wait for the next model. I am with Airtel for last decade and more, and if they are looking its a great model to increase the revenues.

For me not only do i get new phones but less worries regarding usage, especially the data and roaming which is where most of my bill is.

[Eddy]

- Are the free calls onnet only or offnet also i.e. Reliance to reliance or reliance to any operator ?

- Any fair usage policy on the 3G internet ?

[Jaggu]

Originally Posted by Eddy

- Are the free calls onnet only or offnet also i.e. Reliance to reliance or reliance to any operator ?

- Any fair usage policy on the 3G internet ?

Fine print from the site says the following:

[Eddy]

Fairly clear that it is indeed unlimited calling and messaging.

No word on the FUP, I strongly suspect that there is a catch in there.

[vvb8530]

Originally Posted by ninjatalli

The only options where I really see this as a good buy (assuming good Reliance network in your areas)
1. Your current monthly bills are quite high (>2000)
2. Your company pays your monthly phone bills (with a max limit more than 2-3k)
3. You are a die-hard Apple fan

Hi Ninjatalli,

If your company pays your bills wont this scheme rather be a problem considering most companies would require you to submit your monthly mobile bills in order to get a reimbursement and in this case i dont think reliance would be sending you a bill.

I have already bought a 5s but a friend is considering this scheme but her company requires her to submit her phone bills in order to get a reimbursement so shes looking for a way out. Let me know if you have a way out, it would help her.

Thanks.
VVB

[wildsdi5530]

I read about a good idea somewhere on the net.
The Iphone 5S is a SIMfree phone.
Meaning that it can be used with any SIM card.
The contract price is Rs. 2999/- x 24 = Rs. 71976.
Buy it and sell the Iphone to someone else for Rs. 54000/-
Balance 17976, which works to 749/- per month. This for a connection with unlimited everything except ISD connection.
Only thing I'm worried about is if the 3G is speed capped.

[ninjatalli]

Originally Posted by vvb8530

Hi Ninjatalli,

If your company pays your bills wont this scheme rather be a problem considering most companies would require you to submit your monthly mobile bills in order to get a reimbursement and in this case i dont think reliance would be sending you a bill.

I have already bought a 5s but a friend is considering this scheme but her company requires her to submit her phone bills in order to get a reimbursement so shes looking for a way out. Let me know if you have a way out, it would help her.

Thanks.
VVB

Different companies have different systems. I'm not sure if I have a feasible answer to your query.

- My previous company (telecom domain) allowed me to submit bills in any manner as long as it was linked to a wireless/line connection. I even had an option to buy a phone every two years which would be reimbursed by the company.
- My current organization has my credit card transactions linked to the system - every month I need to indicate specific transactions as mobile based charges and I get reimbursement (upto a limit & pending approval) for the same.