Exclusive: Poco India working with telecom companies to bring low-cost 5G phones
Poco is working with Indian telecom service providers to bring low-cost 5G phones to India by bundling tariff plans. The discussions, which are underway, will allow the brand to contribute further to the adoption of 5G in India.
“We are exploring certain partnerships with one of these [telecom] operators on how to make these [5G] phones more affordable by tying a 5G plan,” Himanshu Tandon, country head of Poco India, told BGR India in an exclusive conversation.
Tandon, who did not give a timeline for when phones with bundled plans will become available, said the rollout of low-cost 5G phones depends on the 5G tariffs, which are not out yet. The telecom service providers are in the process of deploying 5G to as many cities as possible according to the schedule and are likely to announce tariff plans for 5G services after a wider 5G rollout.
“Their complete plan of 5G and 5G adoption is still not out. Once that gets out then we can basically come to [the] forefront and partner with them to basically scale up the 5G adoption,” Tandon said.
More 5G phones but with compromises
Operating as a separate identity after it was spun off Xiaomi, Poco has carved out its fan base with the help of phones that have the right mix of specifications available at aggressive prices. It is also among the first brands to launch 5G phones in India.
As 5G continues to be available in more locations, the demand for 5G has surged and Poco is ready to be a part of the increased adoption. The brand is keeping pace with its rivals by launching affordable 5G phones, but producing low-cost 5G phones is challenging. Poco’s rivals have claimed to launch sub-Rs 10,000 5G phones. But it will be an uphill task, especially with the rising costs of components.
“There is a significant amount of tax. This is like a 5G tax that we have to pay for chipsets,” Tandon said while explaining why 5G phones will remain to be slightly more expensive than 4G phones for at least a few more months. Although a 5G phone is today available for as low as Rs 11,000, there are compromises on the specifications and features side, which affects the user experience. To make 5G phones affordable, the omission of some essential features such as a high refresh-rate OLED display or fast battery charging is inevitable.
“If a good-quality 5G phone, which consists of a basic chipset and AMOLED screen, it will basically be around 15k (Rs 15,000) or more than 15k. So, bringing that 5G technology to an affordable price point is possible but a complete phone with all the specifications will cost more, as compared to a 4G phone right now. And considering the 5G revolution is taking on, so our vendors and partners are also having extra cushion on the 5G chipsets as compared to 4G chipsets,” he added.
What customers want
Most customers do not care about the compromises. They would like to have a 5G phone, better if it fits their budget, even if they have to give up some features. The Rs 12,000 to Rs 20,000 segment has, thus, changed accordingly. A customer spending Rs 15,000 or more today wants their phone to be 5G ready, but, according to Tandon, in the next three to four months, people would expect 5G on a Rs 12,000 phone.
“Initially, like six months back, it was around 20k, but now above 15k, 5G has become a hygiene barrier. So, let’s say a 4G phone coming above 15k, [for] that, acceptance would be low,” Tandon said. “I’m expecting, with the data points we are seeing between 4G and 5G phones at similar price points, that [hygiene] will even come to down to, let’s say, 11k-12k. In the next three-four months, I think above 12k, that hygiene will set in, and so, a significant chunk of people opting for a 5G phone would be even higher.”
A vital role for telcos
There is only one thing that can make affordable phones a feasible business practice: the adoption of 5G. The faster the adoption, the cheaper 5G phones will get. And the faster adoption of 5G will depend on many factors, such as easy access to devices and plans that the masses can afford. The latter, Tandon believes, is crucial.
“The adoption of 5G, people will still have to see. This depends on the tariff rates. If let’s say, there is a significant amount of difference between 4G and 5G tariff rates, then the adoption would be low. Then, people might transfer back to 4G phones,” he explained.
The post Exclusive: Poco India working with telecom companies to bring low-cost 5G phones appeared first on BGR India.
Poco is working with Indian telecom service providers to bring low-cost 5G phones to India by bundling tariff plans. The discussions, which are underway, will allow the brand to contribute further to the adoption of 5G in India.
“We are exploring certain partnerships with one of these [telecom] operators on how to make these [5G] phones more affordable by tying a 5G plan,” Himanshu Tandon, country head of Poco India, told BGR India in an exclusive conversation.
Tandon, who did not give a timeline for when phones with bundled plans will become available, said the rollout of low-cost 5G phones depends on the 5G tariffs, which are not out yet. The telecom service providers are in the process of deploying 5G to as many cities as possible according to the schedule and are likely to announce tariff plans for 5G services after a wider 5G rollout.
“Their complete plan of 5G and 5G adoption is still not out. Once that gets out then we can basically come to [the] forefront and partner with them to basically scale up the 5G adoption,” Tandon said.
More 5G phones but with compromises
Operating as a separate identity after it was spun off Xiaomi, Poco has carved out its fan base with the help of phones that have the right mix of specifications available at aggressive prices. It is also among the first brands to launch 5G phones in India.
As 5G continues to be available in more locations, the demand for 5G has surged and Poco is ready to be a part of the increased adoption. The brand is keeping pace with its rivals by launching affordable 5G phones, but producing low-cost 5G phones is challenging. Poco’s rivals have claimed to launch sub-Rs 10,000 5G phones. But it will be an uphill task, especially with the rising costs of components.
“There is a significant amount of tax. This is like a 5G tax that we have to pay for chipsets,” Tandon said while explaining why 5G phones will remain to be slightly more expensive than 4G phones for at least a few more months. Although a 5G phone is today available for as low as Rs 11,000, there are compromises on the specifications and features side, which affects the user experience. To make 5G phones affordable, the omission of some essential features such as a high refresh-rate OLED display or fast battery charging is inevitable.
“If a good-quality 5G phone, which consists of a basic chipset and AMOLED screen, it will basically be around 15k (Rs 15,000) or more than 15k. So, bringing that 5G technology to an affordable price point is possible but a complete phone with all the specifications will cost more, as compared to a 4G phone right now. And considering the 5G revolution is taking on, so our vendors and partners are also having extra cushion on the 5G chipsets as compared to 4G chipsets,” he added.
What customers want
Most customers do not care about the compromises. They would like to have a 5G phone, better if it fits their budget, even if they have to give up some features. The Rs 12,000 to Rs 20,000 segment has, thus, changed accordingly. A customer spending Rs 15,000 or more today wants their phone to be 5G ready, but, according to Tandon, in the next three to four months, people would expect 5G on a Rs 12,000 phone.
“Initially, like six months back, it was around 20k, but now above 15k, 5G has become a hygiene barrier. So, let’s say a 4G phone coming above 15k, [for] that, acceptance would be low,” Tandon said. “I’m expecting, with the data points we are seeing between 4G and 5G phones at similar price points, that [hygiene] will even come to down to, let’s say, 11k-12k. In the next three-four months, I think above 12k, that hygiene will set in, and so, a significant chunk of people opting for a 5G phone would be even higher.”
A vital role for telcos
There is only one thing that can make affordable phones a feasible business practice: the adoption of 5G. The faster the adoption, the cheaper 5G phones will get. And the faster adoption of 5G will depend on many factors, such as easy access to devices and plans that the masses can afford. The latter, Tandon believes, is crucial.
“The adoption of 5G, people will still have to see. This depends on the tariff rates. If let’s say, there is a significant amount of difference between 4G and 5G tariff rates, then the adoption would be low. Then, people might transfer back to 4G phones,” he explained.
The post Exclusive: Poco India working with telecom companies to bring low-cost 5G phones appeared first on BGR India.
Poco is working with Indian telecom service providers to bring low-cost 5G phones to India by bundling tariff plans. The discussions, which are underway, will allow the brand to contribute further to the adoption of 5G in India.
“We are exploring certain partnerships with one of these [telecom] operators on how to make these [5G] phones more affordable by tying a 5G plan,” Himanshu Tandon, country head of Poco India, told BGR India in an exclusive conversation.
Tandon, who did not give a timeline for when phones with bundled plans will become available, said the rollout of low-cost 5G phones depends on the 5G tariffs, which are not out yet. The telecom service providers are in the process of deploying 5G to as many cities as possible according to the schedule and are likely to announce tariff plans for 5G services after a wider 5G rollout.
“Their complete plan of 5G and 5G adoption is still not out. Once that gets out then we can basically come to [the] forefront and partner with them to basically scale up the 5G adoption,” Tandon said.
More 5G phones but with compromises
Operating as a separate identity after it was spun off Xiaomi, Poco has carved out its fan base with the help of phones that have the right mix of specifications available at aggressive prices. It is also among the first brands to launch 5G phones in India.
As 5G continues to be available in more locations, the demand for 5G has surged and Poco is ready to be a part of the increased adoption. The brand is keeping pace with its rivals by launching affordable 5G phones, but producing low-cost 5G phones is challenging. Poco’s rivals have claimed to launch sub-Rs 10,000 5G phones. But it will be an uphill task, especially with the rising costs of components.
“There is a significant amount of tax. This is like a 5G tax that we have to pay for chipsets,” Tandon said while explaining why 5G phones will remain to be slightly more expensive than 4G phones for at least a few more months. Although a 5G phone is today available for as low as Rs 11,000, there are compromises on the specifications and features side, which affects the user experience. To make 5G phones affordable, the omission of some essential features such as a high refresh-rate OLED display or fast battery charging is inevitable.
“If a good-quality 5G phone, which consists of a basic chipset and AMOLED screen, it will basically be around 15k (Rs 15,000) or more than 15k. So, bringing that 5G technology to an affordable price point is possible but a complete phone with all the specifications will cost more, as compared to a 4G phone right now. And considering the 5G revolution is taking on, so our vendors and partners are also having extra cushion on the 5G chipsets as compared to 4G chipsets,” he added.
What customers want
Most customers do not care about the compromises. They would like to have a 5G phone, better if it fits their budget, even if they have to give up some features. The Rs 12,000 to Rs 20,000 segment has, thus, changed accordingly. A customer spending Rs 15,000 or more today wants their phone to be 5G ready, but, according to Tandon, in the next three to four months, people would expect 5G on a Rs 12,000 phone.
“Initially, like six months back, it was around 20k, but now above 15k, 5G has become a hygiene barrier. So, let’s say a 4G phone coming above 15k, [for] that, acceptance would be low,” Tandon said. “I’m expecting, with the data points we are seeing between 4G and 5G phones at similar price points, that [hygiene] will even come to down to, let’s say, 11k-12k. In the next three-four months, I think above 12k, that hygiene will set in, and so, a significant chunk of people opting for a 5G phone would be even higher.”
A vital role for telcos
There is only one thing that can make affordable phones a feasible business practice: the adoption of 5G. The faster the adoption, the cheaper 5G phones will get. And the faster adoption of 5G will depend on many factors, such as easy access to devices and plans that the masses can afford. The latter, Tandon believes, is crucial.
“The adoption of 5G, people will still have to see. This depends on the tariff rates. If let’s say, there is a significant amount of difference between 4G and 5G tariff rates, then the adoption would be low. Then, people might transfer back to 4G phones,” he explained.
The post Exclusive: Poco India working with telecom companies to bring low-cost 5G phones appeared first on BGR India.
