What is the actual Math behind Reliance Contract scheme for iPhone ?


Reliance finally after seeing lot Contract based Phones in USA recently came up with a solid idea of implementing a contract based iPhone 5c and iPhone 5s sales in India too

The scene isn’t new to the western world anytime but is surely new to prepaid customers in India. So today I will mention about the whereabouts of this scheme for general public ,who aren’t much aware of what they are engaging into.

Warning: The above Math is purely for informative purpose , any Apple Fan please don’t treat it as anything different and if you are die hard apple Fans you wouldn’t care too much to read about it

iphone 5s

The below table means you pay INR 2599 for an iPhone 5c and INR 2999 for an iPhone 5s as a 24-month Contract based EMI for 16 GB version and you pay the down payment if you want 32 GB or 64 GB (refer Table)


Though This offer from Reliance is unique and first of its kind in India and marks the beginning of subsidized contract-based smartphone sale in India. This has really stirred high-end smartphone industry in India and is definitely positive indication of similar future contract-based smartphone launch offers.

Now How Actually the Deal works?

  • iPhone 5c 16GB costs Rs.56376 with this bundled offer (incl. tax) on upfront payment (no monthly payment required for 2 years;One time)
  • iPhone 5s 16GB costs Rs.65976 with this bundled offer (inclusive of tax) on upfront payment.

Note : They Offer a INR 6000 Discount Discount for this Scheme

  • On EMI Payment via Only credit card, iPhone 5c costs Rs. 2599 each month for 24 months
  • On EMI for iPhone 5s, INR 2999 will be deducted each month for 2 years.
  • If purchased on EMI, The total cost for iPhone 5c INR 62376 and for iPhone 5s -INR. 71976
  • The entire amount of the transaction is blocked from your credit limit. You only pay the EMI to your card issuer.


Image Courtesy:Captialmind.in

The above pic displays the EMI + Interest cumulative distribution

So it means that in the first place you need to have following:

  • A Credit Card with atleast a limit of INR 75,000 (recommend)so then only you can pay for it and have the credit limit still left behind with you

E.g: You order a 5c 16 GB then you need to pay the INR 62376  amount upfront from your credit card and this actually is included in your billing so need to pay the additional Tax on this amount also

The Worst Part: This is a sort of loan taken by you from your bank,So need to pay 15 % interest too on it  That Amounts to

EMI Details

Image Coutesy:Thinkdigit

What is Still Unclear is the “Service Tax” to be paid to the Bank for this…If you account that too then it amounts to about after 24-Months

  • INR 1150 (for iPhone 5C 16 GB)
  • INR 1360 (for iPhone 5S 16 GB)

Note: The Banks which have this scheme are:

  • ICICI Bank
  • HDFC Bank
  • Standard Chartered bank
  • Citi Bank
  • The bundled offer (usage benefit) from Reliance is same for both the smartphone i.e. customer will get Reliance postpaid connection with Unlimited calls, sms, 3G, 2G, free roaming (incoming and outgoing) with NO FUP or speed capping.(No FUP means No Restriction on speed after certain usage)
  • iPhone is not locked i.e. you can use iPhone with any sim card/network of your choice.
  • The Reliance sim card/connection which comes with an iPhone doesn’t only work with an iPhone          

e.g: Say your Father buys an iPhone and doesn’t want to use it ,then he can change his SmartPhone and make use of the scheme on that phone(This is cool)

  • This reliance iPhone offer sim card/connection can not be used in USB Dongles so you can not use it in your 3G data card for internet.
  • Available in select cities only New Delhi, Mumbai, Chandigarh, Ludhiana, Bhopal, Indore, Raipur, Gwalior, Jabalpur, Amritsar, Jalandhar, Patiala, Jamshedpur, Patna, Ranchi, Bhubhaneshwar, Jaipur, Guwahati, Bhatinda, Cuttack, Siliguri Customer can also buy from any of the given cities with a local address proof and use it in their own city. Customer can also buy it online but before placing order, pin code checking is done to ensure that customer is from one of the given cities.
  • If you don’t have 3G in your Area then you can get 2G unlimited(but price is same; No cost benefit)
  • You can use MNP from other Carriers to switch to Reliance for this Scheme
  • Only GSM Networks ;No CDMA Offers

Can You Run Away With The Phone and Not Pay?

Of course you can. But that’s like saying “Can you steal from my Safe deposit from Bank ?”

Your loan is from a bank (that issues the credit card), not from Reliance. So if you  don’t pay, the bank will come after you for the loan. They will add you as a defaulter.

They don’t care whether you have decided to become an Android or a Windows fan, and they will not cancel the loan if you give back the phone. Your credit card will be blocked – because you’re a defaulting in front of them now.

And Once you are in Defaulter, you face many problems;If I list a few:

  • No Visa application can be filled
  • NoLoan application can be filled and if you are Guarantee for someone’s Loan ,even he suffers
  • They can Chase you for Generations ,So even your Grandsons will suffer

My adviceDon’t be like ADIDAS and Just Do it

What Reliance Benefits from this?

  • Reliance gets its Upfront Cost beforehand, it is the Bank who suffers after that; so in a way Reliance is Out of Picture when it comes to EMI installments
  • RCOM charges INR 62000 whereas Orginal Off-Contract Price is INR 53000 odd, so considering that they get the Phone for INR 40000 they make a INR 20000 profit straight away(speculation considering 650$ or INR 40131 US price)
  • India has many Apple fans who are ready to pay anything ,so RCOM even gets a Subscriber rise substantially

What is the Downside for this Scheme?

  • Network: RCOM doesn’t have the best network coverage in India nor for GSM nor for 3G ,so this might be a problem for many

ROI- Airtel-small

ROI Reliance CoverageCourtesy:Sensorly

This is the map of parts of West and South India, comparing the

Reliance network – bottom 

Airtel network – top

Airtel Mumbai rcom mumbai

This is Comparison of Network Coverage in Mumbai 

  • No Upgrades: Consider if you want a iPhone 6 or 6s(whatever) next year ,considering that only half of your installment will be paid by next year ;You can’t upgrade to it until and unless you pay the full Amount and the Contract Violation Charge + Down payment (if any)for that Phone

TL;DR: Who should Buy this?

  • Really want to buy the iPhone 5(S or C) with warranty
  • Don’t mind switching to the Reliance network, and
  • Don’t care about upgrading your phone for two more years, and
  • Don’t want 4G LTE (RCOM doesn’t offer it now)for free when it comes
  • Don’t have a problem with the limit getting blocked on your card,
  • Can afford this EMI (A must. Revolving credit costs on credit cards are ludicrously high)
  • Who generally have a INR 1000+ Bills

What is the Best Deal?

The 16GB iPhone 5s sounds like the best deal. It has ample storage for most uses and based on the calculation of Rs 2,999 EMI, it comes to Rs 71,976+1334(Service tax if bank charges)

That Totals to INR 72,310 including all costs for 24 months.

The unlocked price of the iPhone 5s base model is Rs 53,500, so in essence you will be paying a Rs 18,476 premium over the course of 2 years with the RCOM offer.

That’s about Rs 770 per month for 24 months.

Considering, The 4GB 3G data plan on RCOM is priced at Rs 450,(prepaid) this sounds like a Sweet deal indeed and is easily the best option to go with when it comes to buying the new flagship iPhone.


Paying a One time INR 65976  

Any Alternatives?

Yes, Airtel also offers the iPhone 5s for INR 53,500 upfront and then 50% discount for iPhone users

Using Airtel vs Reliance: for iPhone 5s

Airtel(INR) Reliance(INR)
Upfront Cost 53,500 65,976
Installment EMI 0 2,999 (To Bank)
Calls Limited* Unlimited
DATA 3G Limited* Unlimited
Total(at end of 24 month) 77,500**  74130
Savings 12,000/year  3,000/year
Disadvantage while saving Restriction to calls ,3G DATA Need to pay for 2 years at one time

*Refer above table for Airtel Rates

**Airtel 2000 Scheme

Note: Upfront Price is One time in above list

So After Reading this ,Still Think that Reliance is offering it at very less price…Nah!

But the Scheme is definitely worth it, if you are wanting an Unlimited Scheme and Don’t mind staying with it for 24 Months

Finals Thoughts: This is a very common scheme in USA and when after using this scheme for years there USA citizens are now wanting to opt for Contract-free(like now in India) GSM sims for phones

So in a way ,we are again implementing something which the Western world has already played with and are fed up it

Lets see how it fares in India in time ahead….What do you think about it?

EDIT:Updated the Calculation

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Buying Nexus 5 From US Play Store to India under Rs. 26000


 Nexus 5 was launched today and it will be atleast a couple of months before it arrives in India. So, if you want to order Nexus 5 immediately from US play store, this is the ultimate guide you need to follow.

And the best part is, ordering from US play store will not only get you Nexus 5 much earlier, but you will actually end up saving good amount of money compared to buying it from India.

Follow the guide given below, and you should not have any problems.

Google Nexus 5 INR Price if you Order in India from US Play Store

[Price calculated at Rs. 62 exchange rate]

  Nexus 5 (India)16 GB Nexus 5 (US)16 GB Nexus 5 (India ) 32GB Nexus 5(US) 32 GB    
Prices INR 28,999 USD 349 INR 32,999 USD 399    
Shipping   USD 37   USD 42    
Shopandship INR 0 INR 620   INR 620    
Import Duties +Octroi(optional to maharshtra,so exclude from total ) INR 0 INR 1200-1300   INR 1200-1300    
Total INR 28,999 INR 25,105 INR 32,999 INR29,109    

Note: The prices may vary slightly depending you are address in the US as taxes differ from state to state.

Link to :Custom Duties Prices

Please keep in mind that guide below was prepared for Buying any Product from US, the process is exactly the same for Nexus 5

If you follow me on Twitter  , by now, you know that I am a proud owner of Samsung Galaxy Nexus. It is definitely not the most expensive  out there, but when I got it for the first time, it felt like I had achieved something.. and by the end of this article you will know why I had that feeling. Nexus 5 is available in India through regular Google Play store

So 2 Reason to Buy From US:

Of course, you can buy it on 3rd party websites like E-bay, grabmore,Amazon and many other sites, but you need to pay atleast 30 to 40 percent premium on the pricing. Now, I could have bought by paying the premium, but it would not have given me half the satisfaction.of ordering it from playstore

Buying a Nexus 5 via Google play store in India is an arduous task, it really is, and it will probably remain so till the time Google decides to release it in India.I Doubt that those who aren’t Tech Savvy will Hardly Ever own a Nexus ..But this Guide will Surely help them Somehow to Simplify it,

Step 1 – Getting to Google Play Nexus  “Buy Now” page

While you can visit Google Play Nexus page by going to Nexus 5 once you click on “shop now” button, you will be first presented with a screen that says:

PS 2

The devices on Google play are COMING SOON in India, so you will need a workaround.

So the first thing to Shop the US playstore on your Browser you need to Download a VPN Client which will give you a Temporary US based IP so the Playstore understands that you have logged in from US. These VPN Clients offer Free Data of 500 MB to 1 GB Free per Month.

If you are not comfortable with VPN Clients, just search Google for a US proxy or VPN client, and you should get many others as well.

HotSpot Shield

You will need to download the VPN Client Hotspot Shield  register with them and you are ready to go. Once you have started the VPN Client, It will ask you for Upgrade Options..It your wish if you want to Upgrade you can Carry on(if you wish to use Spotify , Pandora etc  US based Service then you will surely need to Upgrade to pro)

Vpn 2

Now go to the Browser and Open the Same Site and BOOM

Nexus 5

You can opt for 16GB or 32 GB(its only USD 50 more) its upto you.But once the phone is in shopping cart, you are faced with another issue. You need to 2 things – A US Credit card with and US shipping address because Google does not ship outside of the US. So, before you actually go through the process, you will need to have these 2 things in place.

How to Get US Shipping Address

There are few online portals who offer you virtual US post box addresses. Shopandship.com, is one of the leading sites who offer you US, UK as well as China shipping addresses. I recommend you using this  to order my Nexus 5. I have been recommended by one of my members here  for Choosing shopandship

However, please note that you will need atleast a week for your account to get activated and your shipping address being assigned to you. So, before you head to the Google Play store, please make sure that you have your US shipping address in place with you and you are ready to give it a go

In regards to the US credit card, there is a workaround. You can use your Indian Credit card itself(sometimes it works ,Sometimes it doesn’t) and for billing address, you can give any US address. ;I gave US address of my Friend studying there

If you don’t have a credit card and have a debit card from banks like HDFC,ICICI ,AXIS Bank they offer virtual netsafe credit cards to be generated, which could be used!

Alternate:You can go to this Website for getting a Virtual Debit Card for US or This also work ( Tipped by One of my friend)

Note:This problem of Virtual Debit card only Occurs for PlayStore and not for sites like Amazon,Ebay

Placing the Order on Google Play

Coming back to placing order on Playstore. Once you have selected the Nexus 5 model 16 GB or 32 GB and entered the shopping cart, enter you credit card and US shipping address and in all probability your order should get through.[OT]One of my Friend who placed an Order on 1 Nov 2013 from India had a email saying that it will Leave the Warehouse by 5 November by Luckily his Brother Stays there and he will Ship it to him via International Courier

Additional Charge of 20 USD to 30 USD( approx INR 1240 to 1860) [/OT]

India Shipping, Customs & Duties

Luckily Shopandship and PPoBox does everything on your behalf.Once they receive the Product on mY behalf on the Virtual Address. they will Weight the Product and Accordingly Charge me the Shipping Rates

Luckily Nexus 5 is 130 g (4.59 oz) so the Shipping Charges are Minimal ( INR 600-1000 )

Note: The Heavier the Product the More is the Shipping Charge

Exact Cost of Google Nexus 5

Here is the exact break-up of cost on Google Nexus 5(Rate INR 61.88)

  Nexus 5 (India)16 GB Nexus 5 (US)16 GB Nexus 5 (India ) 32GB Nexus 5(US) 32 GB    
Prices INR 28,999 USD 349 INR 32,999 USD 399    
Shipping   USD 37   USD 42    
Shopandship INR 0 INR 620  INR 0 INR 620    
Import Duties* +Octroi(Only For Maharashtra,So Exclude from total) INR 0 INR 1200-1300  INR 0 INR 1200-1300    
Total INR 28,999 INR 25,105 INR 32,999 INR29,109    

Add to this Octroi which came to about Rs. 1100 taking the cost of Nexus phone to Rs. 25,500. However, in most other cities in India, Octroi is not there. So, even with slight change in exchange rates and other things, the cost of your Nexus 5 phone should not exceed Rs. 25,500/-. For that price, Google Nexus 5 is definitely worth it!

N5 India

Image Edit: Nexus 5 Comes up on indian Retail Store

Wait for it cause this time Google is expected to Launch In India for INR 28,999 and INR 32,999 for 16 and 32 GB respectively on PlayStore .But this is Exclusive of Shipping and Taxes So ,Considering Google’s Shipping Charges (Like in US) the Price Of Nexus 5 may go beyond INR 30,000 or INR 34,000

TIP: Buy it from Amazon US and you can get a 7.5% (Monthly Coupon Code if you Buy from there frequently) off on the Nexus 5 (i.e 323$ or INR 19987 )

Like I said, it is a Difficult task buying a Nexus 5 in India… but in the end, it was all worth it and you save a certain Amount! If you have any questions, do drop me a comment if it Help and I would be more than happy to clarify it!


  • This whole Process Might Take More than a Week …approximately 10-11 days..So Order it Now
  • This Method is Universal for all products from any Country but Play Store is Little bit Strict in this so Wrote a guide on it

Thanks to Arun Prabhudesai :whose Buying a Nexus 4 from US Tutorial helped me

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