Google is set to invest as much as $1 billion in the second largest telecom operator in India, Airtel. The company has made worldâ€™s second largest internet market as a part of commitment to the country which is worth $10 billion and is the latest in the series of bets.
To acquire a 1.28 per cent stake, Google has mentioned that it will invest $700 million in Airtel, which is the leading telecom operator in India that bags the second position. The company has more than 300 million subscribers. Google will also put in the amount up to $300 million more, in order to explore the commercial agreement on multi-year basis with the telecom operator.
Google has mentioned that it will invest $700 million in Airtel, to acquire 1.28% stake.
Both the companies are planning to work together and expand the offerings provided by Airtel to cover a wide range of android devices to its customers through the program they are launching as â€˜innovative affordability programsâ€™. Both the companies, Airtel and Google will also explore smartphone making companies for partnership in order to make more affordable smartphones for the customers. Â
The chief executive of Google and Alphabet, Sundar Pichai has said that Airtel is a leading company that is working towards shaping the digital future of India and the company is proud to have partnered with Airtel, as they share a vision to expand accessibility and connectivity of internet for Indians and more for those who still are unaware. The investment in Airtel made by google is a prolongation of Google for India Digitization, which are funds to increase the access of smartphones, betterment of connectivity in order to support new start-ups and help the companies with the digital transformation.
The announcement of the investment was made at a time Airtel and the other telco, Vodafone were muddling to find ways to repay the Indian government with billion of dollars both the companies owe. Vodafone has made Indian government its biggest shareholder by giving away more than 35% ownership of the company to New Delhi in the beginning of the year.
Airtel and Google are working together to expand the offerings provided by Airtel to cover a wide range of android devices to its customers.
The big competition for both Vodafone and Airtel are Jio platforms, which is run by Mukesh Ambani who is the richest man of Asia. With over 400 million subscribers in India, Jio has bagged many customers through its calls and data offerings that are made at lower prices than Vodafone and Airtel. The firm by Ambani has been supported by Facebook and many other companies. In the year 2020, Google invested a sum of $4.5 billion in Jio. Google and Jio also collaborated to introduce a customised android smart phone that was made to aim the mass population but, according to the analysts, the handset was too costly for people to afford and reach the mass population due to which, the launch was delayed.
Airtel, in collaboration with Google, now explore the new strategic goals for the company and will also create a network domain specifically for India like 5G. Airtel aims to shape and grow the cloud space system in India. The company is presently serving more than 1 million businesses of different sizes by offering its connectivity.