Airtel and Karbonn have launched a 4G smartphone Karbonn A40 Indian at an ‘effective’ price of Rs 1399. Now the 4G smartphone was announced last week and is clearly aimed at the Reliance JioPhone, which is a feature phone with an ‘effective price’ of Rs zero. Of course, both the devices comes with terms and conditions attached. Here’s a look at the detailed terms and conditions of the JioPhone vs the Airtel Karbonn A40 Indian smartphone.
Airtel Karbonn A40 Indian smartphone: Terms and conditions
Airtel Karbonn 4G mobile phone comes with a string of terms and conditions attached. The effective price might be Rs 1,399, but a user actually has to pay more at the time of transaction. The phone has an actual MRP of Rs 2,899. So when purchasing the Karbonn A40 Indian smartphone, a user will pay this amount. The Rs 1,399 price is terms of cashback benefits of Rs 1500.
Airtel is not offering instant cashback of Rs 1500. According to the terms and conditions, the “subscriber is eligible for total Cashback of Rs. 1500 on this device, which will be split over a period of 36 months from the date of purchase of the Karbonn A40 Smartphone device.” The user will get Rs 1500 over the period of three years, which is a rather long time.
Also the cashback won’t be actual cash, but rather payment in the Airtel Payments Bank account. In the first instance, a user will get Rs 500 after 18 months, which is nearly one and a half years. The remaining Rs 1000 will be given after 36 months.
Unlike the JioPhone, a user doesn’t have to return the Karbonn A40 Indian mobile for the cashback. As long as the customers uses this phone and get recharges done on the Airtel SIM, the company will give the cashback.
So how can a user get cashback? Airtel has included further strings in this segment as well. In order to get Rs 500 cashback at the end of 18 months, there have to recharges done “at least once every month for 18 months.” The conditions adds “A cumulative recharge of minimum Rs 3000 should be made on this specific Airtel Mobile number.” If one includes the Rs 2,899 price of the phone and Rs 3000 spent on the phone recharges, then the total is Rs 5,899 for a cashback of Rs 500.
Now to get 1000 cashback at the end of 36 months, the user has continue with the recharges, once every month for the 18 month period with Rs 3000 being the minimum total spent. If one adds Rs 3000 to the earlier charges, a user is spending close to Rs 8,899 for a cashback of Rs 1000 after a period of nearly three years.
Airtel Karbonn recharge of Rs 169
Airtel has a special Rs 169 recharge for this phone. Benefits include unlimited local + STD Mobile calls (subject to fair usage policy) coupled with 0.5 GB data per day for a period of 28 days. Assuming a user gets this recharge every month for 18 months, the total is around Rs 3042. Add the same recharge for another 18 months, and that’s another Rs 3042.
A user will end up spending Rs 6084 on recharges in total if they go for the Rs 169 offer per month. Coupled with the cost of Rs 2899 spent for the phone, the total is around Rs 8,983 for smartphone and recharges, just to get back Rs 1500 as cashback from the company.
Reliance JioPhone Terms and Conditions
Now Reliance JioPhone has an ‘effective price’ of Rs zero, but that’s not how it works. The phone comes with a refundable deposit of Rs 1500, given at the end of three years (36 months). But there are terms and conditions attached to claiming this Rs 1500 back. Also the JioPhone has to be returned at the end of three years to get this money back and the device will have to be in a working condition. The Airtel phone does not have to be returned.
The Rs 1500 deposit is “interest-free” so you’ll get exactly this amount back. JioPhone’s terms and conditions include that in order to get the deposit the customer can’t tamper with the device, unlock it, root it, if they want the money back. Also only a Jio SIM can be used with this, while with Airtel’s 4G smartphone another SIM can be inserted in the second slot.
So what happens if a user returns the phone early? If you return this in under a year from the date of issue, the company will deduct Rs 1,500 plus applicable GST or other taxes. So if you try and claim the deposit in under 12 months, you’re not getting back anything.
Between 12 months and up to 24 months from the date of first issue of the JioPhone, the company will deduct Rs 1,000 from the deposit, along with GST and other taxes. If a user tries to return the phone, between 24 months and up to 36 months from the date of first issue, the company will deduct Rs 500 plus applicable GST or other taxes. Also if a user doesn’t return the JioPhone three months after the 36 month period has elapsed, they won’t get the deposit back.
Reliance JioPhone: Minimum recharge conditions
With Reliance JioPhone, users have to get a recharge Rs 1,500 per year for three years. If they don’t do so, the refund will not be valid. Also Jio’s conditions say the company can take back the phone if the user is not getting recharges. JioPhone has a Rs 153 pack with similar details as Airtel and 0.5GB data per day. Rs 153 into 12 months comes to Rs 1836, and for three years this is Rs 5508.
If one includes the deposit paid for JioPhone, which is Rs 1500, the total minimum amount spent on this feature phone is Rs 7008. Of course, one can get back Rs 1500 from this amount, but again they have to comply with all terms and conditions and return the device in a non-damaged condition. Remember, a user will spend over Rs 7000 on a feature phone over the course of three years to get all benefits, which is pricey.