Google will invest $700 million in the second largest Indian telecom operator Airtel, the latest in a series of bets the company has made in the world’s second largest internet market as part of a $10 billion commitment to the country .
Google said it will invest $700 million to acquire a 1.28% stake in Airtel, which has amassed over 400 million subscribers in India and other markets, and pour in up to $300 million more to explore multi-year commercial agreements.
To begin with, the two firms said they will work to build on Airtel’s extensive offerings that covers a range of Android-enabled devices to consumers via “innovative affordability programs.” The companies also said they will explore partnerships with smartphone makers to “bring down the barriers of owning a smartphone across a range of price points.”
“Airtel is a leading pioneer shaping India’s digital future, and we are proud to partner on a shared vision for expanding connectivity and ensuring equitable access to the Internet for more Indians,” said Sundar Pichai, chief executive of Google and Alphabet, in a statement.
“Our commercial and equity investment in Airtel is a continuation of our Google for India Digitization Fund’s efforts to increase access to smartphones, enhance connectivity to support new business models, and help companies on their digital transformation journey.”
Friday’s announcement comes at a time when Airtel and Vodafone have been scrambling for ways to repay billions of dollars they owe to New Delhi. Vodafone gave away over 35% to New Delhi earlier this month , making the Indian government its largest shareholder.
Vodafone and Airtel compete with Jio Platforms, run by Asia’s richest man Mukesh Ambani. Jio Platforms has amassed over 400 million subscribers in India, thanks to its cut rate voice calls and data offerings. Google invested $4.5 billion in Jio Platforms in 2020. Facebook and nearly a dozen more firms backed Ambani-controlled firm that year.
Airtel said on Friday that it will explore “larger strategic goals” with Google and “potentially” co-create India-specific network domain use cases for 5G and other standards. The companies also plan to collaborate on “shaping and growing” the cloud ecosystem in India, they said. Airtel, which already serves over 1 million small and medium-sized businesses with its enterprises connectivity offering, said Friday’s announcement will “help accelerate digital adoption.”
“Airtel and Google share the vision to grow India’s digital dividend through innovative products. With our future ready network, digital platforms, last mile distribution and payments ecosystem, we look forward to working closely with Google to increase the depth and breadth of India’s digital ecosystem,” said Sunil Bharti Mittal, Chairman of Bharti Airtel, in a statement.
This is a developing story. More to follow…