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    OS that makes ‘dumb phones’ smart takes on Android, Apple

    Synopsis

    With millions of Indians still using feature phones, it’s no surprise that this brainchild of KaiOS Technologies is already the second most popular mobile operating system in India.

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    Codeville says that for KaiOS, the partnership will help fast-track development, and has helped bring features like Google Maps, Assistant, and others to the feature phone ecosystem.
    In a mobile operating system (OS) landscape dominated by Google’s Android and Apple’s iOS, there’s a new rising star called KaiOS. The secret to its success? It makes the humble feature phone ‘smart’ or ‘smart-ish’ (if you go by The Economist).

    With millions of Indians still using feature phones, it’s no surprise that this brainchild of San Diego startup KaiOS Technologies is already the second most popular mobile operating system in India after Android, capturing over 16% market share. iOS is third with 10% share, as per an August 2018 analysis by tech consulting firm Device Atlas.

    The new category of handsets powered by KaiOS, which has partnered with Reliance Jio, require limited memory while still offering a rich user experience through services like Google Assistant, Google Maps, YouTube, and Facebook, among others.

    Faisal Kawoosa, founder, techARC, credits KaiOS with bringing about a paradigm shift in infotainment in India. “This (the feature phone platform) becomes the first exposure of mobile users to a digital environment. It is also helping the ecosystem add new users to digital services without much increase to the cost of the device,” he said.
    For all of 2018, Counterpoint Research estimates that KaiOS held almost 21% share of the total handsets shipped. Globally, over 85 million KaiOS-powered devices have been shipped worldwide, including the US, India and other emerging markets.

    ‘81 crore of 137 crore Indians don’t have access to internet’
    Out of more than 100 million subscribers Reliance Jio added since its launch, almost half come from KaiOS-powered 4G Jio phones, according Counterpoint Research. In India, the KaiOS-powered JioPhone has its own applications directory — the JioStore — which not only includes Google, Facebook, WhatsApp, but also a range of custom apps like Jio Music, Jio TV, and others.

    KaiOS CEO Sebastien Codeville told TOI that Jio approached the American startup in December 2016, seeking a partner to help them develop a new 4G feature phone that could create a digital ecosystem in India. “Although the adoption and growth has been explosive, we believe there’s still untapped opportunity given that out of 1.37 billion Indians, 810 million Indians still don’t have access to internet,” Codeville said.

    In its efforts to help firsttime mobile users go digital , KaiOS also found a partner in Google, which invested $22 million in KaiOS in a Series A round last year. Interestingly, Google’s Android, especially the lighter version Android Go, competes with KaiOS when it comes to powering affordable smartphones.

    Codeville says that for KaiOS, the partnership will help fast-track development, and has helped bring features like Google Maps, Assistant, and others to the feature phone ecosystem. The voiceenabled Assistant is especially important to people with poor literacy skills.

    KaiOS makes money from in-app purchases, advertising, and other fees charged to partners for backend services. Earlier this year, KaiOS also launched KaiAds, its first advertisement software development kit, thereby mitigating the low average revenue per user (ARPU) characteristics of a feature phone.

    “KaiOS gives a huge opportunity for all the mobile industry stakeholders to monetize from the growing user base through services such as connectivity, applications, content, advertisements, payments, location-based services, among others,” Varun Mishra, research analyst, Counterpoint Research, said.

    Interestingly, JioPhone is the first device running on the KaiOS platform to get WhatsApp access, which is, in fact, still not available in other global markets. In September 2018, JioPhones started hosting WhatsApp, thereby addressing users’ biggest grouse with feature phones worldwide, and making them an attractive companion handset for many smartphone users. Even as KaiOS has managed to woo the largest feature phone market in the world, analysts say the platform’s further reach and momentum will depend heavily on its ability to bring WhatsApp and other sought-out apps on feature phones worldwide- a feat it has already achieved in India with Jio.

    “A focus moving forward in India, as well as other regions, is to expand the developer network so they can create more customized content,” Codeville said.
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