Is the Reliance Jio phone really free?

Lets do some analysis on this.

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The latest details come courtesy the Jio website, which has updated the terms and conditions for the JioPhone to make them more clear. The site notes:

"The JioPhone is available for continued use on the Recipient purchasing telecom recharge vouchers of an Authorized Carrier (presently Reliance Jio Infocomm Limited) from the Company or any of its authorized retailers for use in the JioPhone 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 JioPhone."

In simple words, what this means is that a JioPhone user will have to spend at least Rs 1500 on Jio data plans every year. The JioPhone will be ideally paired with the Rs 153 plan monthly plan. This will give users 512MB 4G data and unlimited VoLTE calls and messages. Using this plan will also mean that consumers will end up spending more than Rs 1500 in a year on Jio, which will meet the condition laid out for the use of JioPhone.

Now, this also means that even though Jio has for the first time specifically spelled it out that a JioPhone user will have to spend Rs 1500 on the phone every year, it is not actually new. Earlier too the company had said that JioPhone users will have to spend money on Jio plans to use the device.!

Although, the new terms and conditions make a couple of things clear.

-- One, the weekly Jio plans, which are very cheap, should be used by JioPhone users temporarily. If you are getting a JioPhone, it is almost mandatory for you to use the Rs 153 or higher value plan.

-- Jio doesn't want people to get the JioPhone and then not use it. If you are getting the JioPhone, you have to use it.

Apart from saying that JioPhone users will have to spend Rs 1500 on Jio every year, the company has also said that they will have to use the phone for at least 3 years before they get Rs 1500 back. This fee of Rs 1500 a user has to pay as a refundable security fee while getting the device.

You will get it back only if you return the JioPhone back to Jio after using it for 36 months but before 39 months. Also, the phone will have to returned in a working condition with no damage.

In case a user returns the JioPhone back before completing three years, here is what he or she will have to pay:

-- Returning before 12 months: Full Rs 1500 fee will be forfeited.

-- Returning between 12 months to 24 months: Rs 1000 will be charged

-- Returning between 24 months to 36 months: Rs 500 will be charged

Yet, again there is not exactly anything new that Jio is saying. When the JioPhone was launched Reliance Chairman Mukesh Ambani had said that users will get their refundable Rs 1500 back after using three years. But there was some confusion about this. Whether this was after three years or within three years. Today Jio is making it clear the Rs 1500 fee is refundable only after you use the device for 3 years.