There are about 250 million feature phone users in India, and many of them still use 2G phones and only for voice calls, according to the International Data Corporation
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The world may be moving on to super-fast internet speeds on 5G or even 6G, but masses in rural India are still stuck in the 2G era.
All that could change with a new $12 phone from Reliance Jio this week.
The telecommunications arm of Indian conglomerate Reliance Industries, has opened the door for more people to gain access to the internet through the launch of its new internet-enabled phone with a 4G mobile network. Feature phones are essentially non-smartphones that have a push-button keypad and a small non-touch display.
Reliance Jio’s new feature phone aims to reduce the mobile connectivity gap between rural and urban India by giving non-smartphone users a cheaper alternative to switch from 2G to 4G mobile networks.
“There are still 250 million mobile phone users in India who remain trapped in the 2G era, unable to tap into basic features of the internet at a time when the world stands at the cusp of a 5G revolution,” Reliance Jio’s Chairman Akash Ambani said in a press release.
5G refers to the next-generation mobile networks that offer data at very high speeds, and are needed to support advanced technologies like driverless cars and virtual reality.
The new phone, named Jio Bharat, serves as an entry-level phone for first time internet users that would just rely on the basic functions without being convoluted by the endless number of applications that can be found on a smartphone, Varun Mishra, senior analyst at Counterpoint Research, said.
India is already the world’s second-largest smartphone market and is likely to add 300 million new internet users, making it the fastest country to provide internet services to those who remain unconnected, Mishra said.
“With a familiar form factor and internet connectivity, this device can help users experience key services like digital payments, content, and more for the first time through Jio’s ecosystem,” Mishra told CNBC. “However, screen size can limit the experience a bit, but still good for first-time internet users.”
Customer retention
Jio has an upper hand against its competitors in the telco service space, such as Vodafone Idea — a partnership between Aditya Birla Group and Vodafone Group — as well as Bhati Airtelas and BSNL.
Apart from selling the phone at an extremely low price point, monthly plans from Jio are also very affordable — and the other telco companies could even start losing customers, Mishra highlighted.
Reliance Jio claims that their monthly plans are 30% cheaper than other telcos, and offer customers seven times more data.
Paying $1.50 will get users unlimited voice calls and 14 gigabytes of data, compared to almost $3 for other voice calls and just 2 gigabytes of data from other operators, Reliance Jio’s press statement claimed.
This is Jio’s tactic to attract more feature phone users to sign a plan with them even though they only offer 4G and 5G mobile network services, according to Navkendar Singh of the International Data Corporation (IDC).
Reliance Jio has rolled out 5G services in 406 cities in India.
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There are about 250 million feature phone users in India, and many of them still use 2G phones and only for voice calls, according to Mishra.
Reliance Jio attracts these consumers and take them away from “legacy operators” by offering more “palatable” price plans, Singh told CNBC in a phone interview.
“From what we understand, the main objective for Jio is to get more customers on the Jio platform and the Jio network, and they can then start cross-selling the services,” he said, explaining that customers can also tap on Jio’s payment and streaming services.
Additionally, Singh highlighted that Reliance Jio hopes first-time internet users who purchase the Jio Bharat will eventually upgrade to more advanced phones down the road.
“Right now, Jio gets revenue of about $1.50 to $2 a month, and when customers subsequently upgrade their phones in three or four years time, they would choose more advanced feature phones or low cost smartphones at some point in time,” he added.
Price war with other telcos?
Analysts who spoke to CNBC also agree that despite Jio’s cost-friendly plans, other telco companies are unlikely to significantly drop their prices.
“There’s been an ongoing tussle between Jio and other telcos in India,” said Nikhil Batra, research director of IDC.
“Lowering prices across the board will not be a viable option, but it will be a challenge for [other telcos] to create new customer experiences and product bundles to increase customer stickiness,” Batra said.
According to data from Macquarie Research, Jio currently has the biggest subscriber market share in Delhi (34%), Mumbai (35%), and Kolkata (42%), compared to Vodafone Idea,Bharti Airtel and BSNL.
However, other telcos could still benefit from those in India who continue to choose phones that do not let them surf the internet.
Macquarie data also showed that in rural areas such as Bihar, Jammu and Kashmir, and Himachal Pradesh, Bharti Airtel holds a larger market share than Jio.
India’s 5G rollout
India has the world’s second largest telecom industry with a subscriber base of 1.17 billion people as of September 2022, data from IDC showed. The growth trajectory of the sector is just going to get higher from here, the market intelligence firm said.
“The industry’s growth over the past few years has been primarily driven by lower tariffs, availability of affordable smartphones, launch of telecom services by Reliance Jio, expansion of 4G coverage, and higher data consumption by subscribers,” Batra said.
More consumers are also expected to purchase smartphones that have a 5G mobile network.
About 52 million 5G-enabled phones were purchased in 2022, an increase from 26 million the previous year, IDC data showed.
“India’s 5G rollout has been much quicker and smoother and is well on course to reach pan-India by Jio by the end of the year. Jio and Airtel already have 5G services, and Vodafone Idea and BSNL are expected to join in rolling out 5G by 2024,” Counterpoint Research’s Mishra said.
Men talk on their mobile phones in front of an iphone 14 advertisement, in Kolkata on September 27, 2022.
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Counterpoint Research estimates there are nearly 85 million users of 5G capable smartphones in India, and 5G handsets had captured 32% of market share in 2022. Over 50% of smartphones shipped in April 2023 had 5G capabilities as well.
However, this is largely supply driven, Batra said. That’s because “brands are able to bring in more 5G devices due to the better supplies achieved by 5G roll out and demand for 5G phones in other countries such as China and Korea.”
“Consumers in India have not really demanded a 5G device until now, their purchases being driven by the availability as almost all smartphone models are priced around $300 and are 5G capable,” he added.
Despite regulation and telecom infrastructure challenges, “India will be a major market for 5G by 2026 and will dominate the 5G net additions just as China starts to mature and decelerate,” Batra said.
Technology is playing a much bigger role these days and “we can expect India to further accelerate and set an example,” he said citing the example of banking and Unified Payments Interface as an example.
“India leapfrogged the majority of developed nations in making digital payments convenient, accessible, and widely accepted, irrespective of merchant sizes,” he added.
The moon vacuum, which was unveiled on Wednesday by Blue Origin at Amazon‘s re:Invent 2025 conference in Las Vegas, was built using critical technology from startup Istari Digital.
“So what it does is sucks up moon dust and it extracts the heat from it so it can be used as an energy source, like turning moon dust into a battery,” Istari CEO Will Roper told CNBC’s Morgan Brennan.
Spacecraft carrying out missions on the lunar surface are typically constrained by lunar night, the two-week period every 28 days during which the moon is cast in darkness and temperatures experience extreme drops, crippling hardware and rendering it useless unless a strong, long-lasting power source is present.
“Kind of like vacuuming at home, but creating your own electricity while you do it,” he added.
The battery was completely designed by AI, said Roper, who was assistant secretary of the Air Force under President Donald Trump‘s first term and is known for transforming the acquisition process at both the Air Force and, at the time, the newly created Space Force.
Read more CNBC tech news
A major part of the breakthrough in Istari’s technology is the way in which it handles and limits AI hallucinations.
Roper said the platform takes all the requirements a part needs and creates guardrails or a “fence around the playground” that the AI can’t leave while coming up with designs.
“Within that playground, AI can generate to its heart’s content,” he said.
“In the case of Blue Origin’s moon battery, [it] doesn’t tell you the design was a good one, but it tells us that all of the requirements were met, the standards were met, things like that that you got to check before you go operational,” he added.
Istari is backed by former Google CEO Eric Schmidt and already works with the U.S. government, including as a prime contractor with Lockheed Martin on the experimental x-56A unmanned aircraft.
Watch the full interview above and go deeper into the business of the stars with the Manifest Space podcast.
Nvidia CEO Jensen Huang said he met with President Donald Trump on Wednesday and that the two men discussed chip export restrictions, as lawmakers consider a proposal to limit exports of advanced artificial intelligence chips to nations like China.
“I’ve said it repeatedly that we support export controls, and that we should ensure that American companies have the best and the most and first,” Huang told reporters on Capitol Hill.
Lawmakers were considering including the Guaranteeing Access and Innovation for National Artificial Intelligence Act in a major defense package, known as the National Defense Authorization Act. The GAIN AI Act would require chipmakers like Nvidia and Advanced Micro Devices to give U.S. companies first pick on their AI chips before selling them in countries like China.
The proposal isn’t expected to be part of the NDAA, Bloomberg reported, citing a person familiar with the matter.
Huang said it was “wise” that the proposal is being left out of the annual defense policy bill.
“The GAIN AI Act is even more detrimental to the United States than the AI Diffusion Act,” Huang said.
Nvidia’s CEO also criticized the idea of establishing a patchwork of state laws regulating AI. The notion of state-by-state regulation has generated pushback from tech companies and spurred the creation of a super PAC called “Leading the Future,” which is backed by the AI industry.
“State-by-state AI regulation would drag this industry into a halt and it would create a national security concern, as we need to make sure that the United States advances AI technology as quickly as possible,” Huang said. “A federal AI regulation is the wisest.”
Trump last month urged legislators to include a provision in the NDAA that would preempt state AI laws in favor of “one federal standard.”
But House Majority Leader Steve Scalise (R-LA) told CNBC’s Emily Wilkins on Tuesday the provision won’t make it into the bill, citing a lack of sufficient support. He and other lawmakers will continue to look for ways to establish a national standard on AI, Scalise added.
File: Then Apple Creative Director Alan Dye celebrates the launch of the July Issue at the new WIRED office on June 24, 2015 in San Francisco, California.
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Apple‘s head of user interface design, Alan Dye, will join Meta, in a notable shift of executive talent in Silicon Valley.
The iPhone maker confirmed Dye’s departure on Wednesday and Apple CEO Tim Cook said in a statement that the company prioritizes design and has a strong team. The statement said that veteran designer Stephen Lemay will succeed Dye.
“Steve Lemay has played a key role in the design of every major Apple interface since 1999,” Cook said in a statement.
Meta CEO Mark Zuckerberg in a Wednesday social media post said that Dye would lead up a new creative studio that brings together design, fashion and technology.
“We plan to elevate design within Meta,” wrote Zuckerberg, who did not say what specific products Dye will work on.
Compared to other Silicon Valley companies, Apple has always emphasized design to customers and investors as one of its strengths. Apple prominently features its design executives to discuss interface changes at the company’s launch events.
In June, Dye revealed a redesign of Apple’s software interface for iPhones, Macs and the Apple Watch called Liquid Glass. The company described it as an “elegant” new design with translucent buttons, updated app icons and fluid animations.
Dye said it was the “next chapter” of the company’s software and said it “sets the stage” for the next era of Apple products.
“Our new design blurs the lines between hardware and software to create an experience that’s more delightful than ever while still familiar and easy to use,” Dye said at the launch.
Apple announces liquid glass during the Apple Worldwide Developers Conference (WWDC) on June 9, 2025 in Cupertino, California.
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For years, Apple design was embodied by executive Jony Ive, who left Apple in 2019 and is now working with OpenAI on artificial intelligence hardware alongside Sam Altman.
Dye took over user interface design and became one of the design studio’s leads in 2015 when Ive stepped back from a day-to-day role. Dye started at Apple in 2006 and worked on software for the iPhone, iPad, Mac, Apple Watch, Apple TV and Vision Pro, according to his LinkedIn profile.
He was also partly responsible for the first iPhone in 2017 that did away with the home screen button at the bottom of the device and replaced it with a software-based swipe-up motion.
Meta has said in recent years that it wants to be a major developer of hardware and Zuckerberg has said Apple is one of his company’s biggest competitors.
The social media company currently makes several virtual reality headsets under its Quest brand, and recently scored its first hardware hit with Ray-Ban Meta smart glasses, which are stylish sunglasses equipped with cameras and the ability to run an AI model that can answer questions. Sales of the device tripled over the past year, Ray-Ban parent company EssilorLuxottica said in July.
“We’re entering a new era where AI glasses and other devices will change how we connect with technology and each other,” Zuckerberg wrote.