The iPhone Will Finally Be Offered on Contract in India

The iPhone Will Finally Be Offered on Contract in India

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Reliance Communications has announced that it offer subsidized iPhone 5s and iPhone 5c devices in India with a two year contract, reports the WSJ.

The contract system, which is widely prevalent in other parts of the world, is a rarity in India. Telecom operators in India don’t subsidize the handset for their subscribers as the lack of a universal data base–such as the U.S.’s social security number–makes it difficult to track users and determine their credit worthiness.

Reliance Communications experimented with a contract system in 2003 but it was a big failure. They received a million new subscriptions in 10 days; however, customers ditched the phone and switched providers after a few months, leaving the company with huge losses.

This time around Reliance is partnering with credit card companies who will be responsible for the billing. Customers without credit cards will not be able to sign up on contract.

The iPhone 5s will cost 2,999 rupees ($48.50) per month and the iPhone 5c will cost 2,599 rupees per month. This includes unlimited phone calls, Internet subscription, and no additional costs.

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The iPhone Will Finally Be Offered on Contract in India

vizzi4 - November 4, 2013 at 1:33pm
It would be fine, if AIRTEL, offer similar plans too
Sharon Nathaniel - November 4, 2013 at 2:35am
I think tie-ups with credit card companies for the credit history is a good move by Reliance, if they boost their network strength I think its going to profit huge. And with contract Reliance steals the show from other service providers, I strongly believe 55% of the young professionals will be comfortable to pay 2999 for iPhone 5S with unlimited plan. Personally its a good move.
Prakash Munjuluri - November 3, 2013 at 6:25pm
Wowwwww..this is great news for iphone lovers in India..Apple company has to concentrate more on Indians & India to attract us towards Apple devices..dont forget that at present India is 2nd most populated country,economically stable & very powerful,rich country in the world..!!
Jorge - November 3, 2013 at 2:28pm
It's closed minded people like you that fail to understand cross-cultural differences.
Raj - November 3, 2013 at 12:30pm
It's not the fact that indians are cheap. The point is most family's only make $4,000 - $6,000 the general average. Than theres a phone that you may want thats $1,000 dollars out of contract. In general it would be utterly stupid for someone to pay about $1,000 USD for a phone when they only make about $4,000 a year. Unless it's only 2,999RS and 2,599RS than it will be afforable. But chances are the company is paying full retail price for the phone and even though the customers may be getting the phone for cheap in the beginning they might charge outrageous prices for the phone service. Thus throwing those extra costs within the bill itself. - Market Researcher / IT Enginner ( vodafone India ) I'm one of the 1% as it would be considered in India I make about $34,000 a year due to my crucial role in Vodafone india.
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