Google will invest as much as $ 1 billion in India’s second largest telecommunications operator Bharti Airtel.
Google will pay $ 700 million (Rs 734 per share) for 1.28 percent of the shares in Bharti Airtel Ltd and the rest go to a multi-year plan that will include the device.
“Partnerships will focus on one, allowing affordable access to smartphones across the price range for airtla customers; two, co-creating special use cases of India for 5G; and three, accelerates the cloud ecosystem for companies, especially small and medium enterprises (SMEs)) in All India, “said Aliasgar Shakir, Telecom analyst, Motilal Oswal Financial Services Ltd.
He added, “Bharti can take advantage of the Google Technology platform to explore the monetization of digital offers.
It can be a.) Take advantage of large pond opportunities (> 300m) from telephone customers feature on the market through affordable devices that are activated by Google., B.) This can take advantage of solutions Google 5G technology to offer cases of use to SMEs / consumers including Cloud services.
Over time can encourage great value through the new growth area.
Bharti Airtel.
From a Google’s viewpoint, of course, it sees a binding advantage with a large telecommunity provider to create a front end , “This added will be the second investment by going OLGA, which has been committed two years ago to invest $ 10 billion in India through digitizing funds for 5 to 7 years through equity and bonding agreements.
In July 2020, Google invested $ 4.5 billion for 7.73 percent of the shares on the Jio Mukesh Ambani platform.
Bharti Airtel Board has approved the issuance of up to 71,176,839 shares of the equity of the nominal value of RS 5 each company to Google International LLC at a preferential price at a price of Rs 734 per share equity which was reduced to Rs 5,224.3 Crore (around USD 700 million).
“Airtel and Google shared the vision to grow Indian digital dividends through innovative products.
With networks that are ready in the future, digital platforms, distribution ecosystems and last mil payments, we hope to work with Google to increase the depth and extent of India digital ecosystems , “said Chairman Bharti Airtel Sunil Bharti Mittal in the statement.