Google has announced its intention to invest a total of $1 billion in Indian telecom giants, Airtel India as part of a $10 billion commitment to the country.
Reports said the new funding which will be in 2 tranches will see the first $700 million channelled to the acquisition of 1.28% stake in Airtel while the remaining $300 million will be used to explore multi-year commercial agreements with the telco.
The development will expectedly see the two firms work to expand Airtel’s offerings to cover a wide range of Android-enabled devices to consumers’ innovative affordability programs.
Google and Alphabet Chief Executive, Sundar Pichai, while speaking on the deal said, “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.”
“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,” Pichai said.
Also, Chairman of Bharti Airtel, Sunil Bharti Mittal, in a statement said “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.”
Airtel is the second-largest telecom operator in India with over 300 million subscribers and over 600 million internet users.
Airtel Africa recently became the most capitalized company listed on the Nigerian stock exchange, surpassing Africa’s richest man, Aliko Dangote‘s Dangote Cement.
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