Mumbai, July 21: After taking India's telecom sector by storm some 10 months ago, Reliance Jio is set to unleash its second wave of disruption.

Chairman Mukesh Ambani today announced the launch of a 4G-enabled feature phone at an "effective" price of zero.

The phone, which will target 50 crore users, will use Jio's cocktail of life-long free voice calls and cheap data to bring customers into its fold.

The profile of the customer Jio is targeting for its bundled service is someone who cannot afford a smart phone or has no access to a 4G LTE connection.

Ambani announced the launch of the device - JioPhone - at the company's 40th annual general meeting (AGM) here today. Bulk of his address to shareholders was concentrated on Jio.

Feature phones are devices with limited functionality vis-a-vis a smartphone, though one can access the Net or listen to music.

RIL's telecom arm Jio had commenced operations last September and its formula of free voice and cheap data had helped it to bag more than 125 million customers so far.

Customers interested in buying a JioPhone will have to make a one-time refundable security deposit of Rs 1,500. This deposit will be refunded after 36 months on return of the phone.

The JioPhone will be available for user testing in beta form from August 15 and for pre-booking from August 24.

While voice calling will be free, Jio will offer attractive data tariffs. Data packs will cost Rs 153 per month on the device.

To fit every pocket, there will be two sachets - a weekly plan of Rs 54 and a two-day plan of Rs 24. However, there will be a fair-use policy of half a GB per day, to ensure that bandwidth is fairly apportioned for every user. This means internet speeds will be reduced after an individual consumes 500MB of data in a day.

While the phone comes with features such as voice recognition, it will be pre-loaded with Jio apps that are now available on its smartphones.

This apart, users can purchase a "JioPhone TV cable" that connects the phone with any television set, thereby allowing users to watch videos and movies.

"It is both unjust and ironic that 50 crore Indians who have feature phones pay more for voice calls and texts than those with smartphones. They end up spending their entire month's telecom budget of Rs 150-200 only to get 150 minutes of voice - while their smartphone counterparts on the Jio network get voice for free," Ambani said.