The world’s leading search engine, Google will invest $1 billion in Airtel, Indian leading telecom operator with operations in 14 African countries, including Nigeria.
The investment is part of a $10 billion commitment to India, the world’s second-largest internet market.
Detailing its investment plans, Google said it will use $700 million to acquire a 1.28 percent stake in Airtel, the preferred network for over 300 million subscribers. Another $300 million will be used to explore multi-year commercial agreements with Airtel.
Google and Airtel will now work to expand Airtel products to cover a wide range of Android-enabled devices to consumers via “innovative affordability programs,” they said. The two companies also plan to work with smartphone manufacturers to produce more affordable smartphones for users in India and across the company’s operating markets.
The announcement came at a period when Airtel and Vodafone are struggling to repay billions of dollars owed to the Indian government. Earlier this month, Vodafone gave up more than 35 percent in equity to New Delhi, making the Indian government the company’s largest shareholder.
“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.”
Airtel will now be going head to head with Jio Platforms, run by Asia’s richest man Mukesh Ambani.
In 2020, Google invested $4.5 billion in Jio Platforms, and since then, the company has amassed 400 million subscribers in India, thanks to its lower rates on voice calls and data offerings. Facebook and other leading global investors are also backing Jio Platforms.
