After announcing that the Reliance Jio Phone would be virtually 'free', the company has modified the terms and conditions on its website, a move that would make users shell out more than what they previously expected.
The recently changed terms and conditions on the Jio phone’s website come at a time when the company claims that six million handsets have already been pre-ordered and that they had started shipping them.
According to the new terms and conditions, users will now have to shell out a minimum of Rs 1,500 for recharges every year. That number comes to a minimum of Rs 4,500 for three years. Failing this, the company reserves the right to take away your phone and the customer will also have to pay additional charges.
"The Jio Phone is available for continued use on the Recipient purchasing telecom recharge vouchers of an Authorised Carrier (presently Reliance Jio Infocomm Limited) from the Company or any of its authorised retailers for use in the Jio Phone of a minimum value of Rs. 1,500/- per annum for a period of 3 years from the date of the first issue of the Jio Phone," says the company on its website.
At the launch of the phone, RIL supremo Mukesh Ambani offered life-long free voice calls bundled with 4G data streaming at an "effective price of zero". Effectively though, it will not be zero.
The phone was made available for pre-booking from August 24 on payment of a ‘refundable’ security deposit of Rs 1,500. The amount of the refunds has been changed as well.
If a user wants to return the phone within the first 12 months, they are entitled to Rs 1,500 “plus applicable GST or other taxes”. Between 12 and 24 months, you get Rs 1,000 with taxes, and in the final year, Rs 500 with taxes.
However, Outlook learnt from the Reliance Jio team that the Rs 1500 minimum recharge per year is still lower than the current average usage of nearly Rs. 130 per month (or about Rs.1,560 per year) for users on other 2G networks.
"The minimum usage stipulation has been incorporated in order to encourage appropriate usage of the phone and prevent any misuse or hoarding," said Jio in a statement given to Outlook.
"Nowhere in the world does anyone provide full refund for products that are used," it further added.
At the launch, Ambani had said that Jio aims to provide an "affordable" device to these 50 crore users and "end the digital exclusion in India". That may be the case, or not.
