Tech Giants Boosts Indian Rival Mobile Operators


Google, owned by Alphabet Inc., is India’s second-largest carrier two years after Facebook (now renamed Meta Platforms Inc.), led by Mark Zuckerberg, provided a huge amount of money to Reliance Jio Platforms. Invest up to $ 1 billion in Bharti Airtel.

What happened

In this transaction, Google will invest $ 700 million to buy a 1.28% stake in Airtel at a price of about $ 9.9 per share, up to $ 300 million for a potential multi-year commercial deal. Airtel said in a filing with regulators on Friday that it included launching.

Airtel, based in New Delhi, said the deal could enhance 5G plans on smartphones in all price ranges.

We will also promote the cloud ecosystem of companies across India.

“As part of the first commercial deal, Airtel and Google will work together to build a wide range of Airtel products covering a variety of Android-enabled devices for consumers through an innovative and affordable program.” Airtel says.

The deal also aims to lower “barriers to owning smartphones at different price points in collaboration with different device makers.”

Google CEO Sundar Pichai announced in 2020 that it will invest about $ 10 billion in India’s Digitization Fund over the next five to seven years.

Important reason

This investment is the latest example of growing interest in India’s 1.8 billion mobile users from US-based tech giants.

Google and meta products (Google Search, YouTube, Facebook, Instagram, WhatsApp) are very popular in India and operators are running 5G trials ahead of the expected commercial rollout this year.

In 2020, Meta Platforms invested $ 5.7 billion in Reliance’s Jio Platforms, the largest privately held telecommunications company owned by billionaire’s Mukesh Ambani listed company Reliance Industries.

By Rachit Vats

© 2021 Epoch Times. The Epoch Times does not provide investment advice. all rights reserved.

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