The 4G smartphones being shipped in India has shown a sharp increase with 54% of total shipments in Dec 15 being 4G smartphones vs. 5% of total shipments being shipped. Infact, 4G smartphone shipments surpassed 3G volumes for the first time in Dec-15 quarter, primarily led by Samsung and Lenovo. A majority of these smartphones only support 1800/2300 MHz and do not support VoLTE.
We estimate less than 15% of 4G smartphones currently sold in India support 850 MHz & VoLTE (which is essential for Jio to have a better network quality and voice calls). We consider this to be a near-term disadvantage for Jio and expect Jio to distribute / launch more LYF branded phones in coming months to overcome the ecosystem disadvantage.
