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Why Is Google Likely To Invest Big in Airtel?

Entry of Jio in Telecom Industry- Aftereffects

With the entry of Jio in 2016, the Indian telecommunication industry has changed drastically. It offered large amounts of data and voice calls at cheaper rates to customers. Thus, becoming a powerful force that changed the paradigm of the entire ecosystem. India became the world’s biggest consumer of mobile data, even surpassing countries like the US and China.

As a result, Jio’s entry resulted in sharp declines in profits and revenues of other telecom companies. Majorly the damage was faced by Vodafone Idea Ltd. However, Bharti Airtel Ltd had fared relatively better, even though its profits have fallen sharply too.

In 2020, Jio even received backing from Facebook and Google. Google paid ₹33,737 crores to Jio Platforms Limited. This  Google-Jio collaboration aims to develop ‘an entry-level affordable smartphone’ for Indian users. Jio Platforms was launched in November 2019. It is described as a next-gen technology platform that is focused on providing affordable quality digital services. Therefore, this partnership with Google will help the company in capturing India’s emerging digitization market. Prime Minister’s vision for Digital India has brought significant changes in the country and the lives of people.

Will Google invest in Airtel?

Airtel is struggling to keep up in the telecom industry. However, the search giant Google is in talks to make ‘substantial investments‘ in Bharti Airtel. Well, Google’s strategic assistance and data analytics can be of immense help to Airtel. It can even turn around Airtel’s fate in the industry. Earlier, Google partnered with Jio and now it is in the news that it is likely to invest in its rival company Bharti Airtel.

Reportedly, Bharti Airtel can soon get an investment from Google which could run into several thousands of crores. The sources suggest that Google has been in ‘advanced stages of negotiations’ with Airtel for ‘nearly one year’ now. As a result, there is a ‘substantially large’ probability that the deal will materialize.

In a regulatory filing, Bharti Airtel said, “Being a significant player in the telecom and digital industry, the company receives interests from high-quality investors and companies for its various businesses.” Top executives from both companies are collectively working on finer aspects of this partnership. Once it is completed, the partnership will be known to all.

In Conclusion

As a result, this deal will allow the telecom company to pay off its debt to the government. It will also keep investing in 4G and 5G networks. Therefore, a large investment from Google can set a lot of things in order for Bharti Airtel.

About the author

Vrinda Gupta

Hi there! I am on a journey to discover myself. As a result, I enjoy putting myself out there and exploring the intricacies that life offers. Things I have tried and learned from - painting, reading, writing, cooking, teaching, and traveling. I am all set to graduate from the University of Delhi in 2022 with a Bachelors's Degree in Management Studies. Hope you have a good time reading my articles!