Google has revealed plans to invest a total of $1 billion in Indian telecom operator Airtel as part of a $10 billion commitment to the country.
It was revealed by the tech giants sources that the new funding, which will be in two 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.
Chief executive of Google and Alphabet, Sunday 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.”
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.”
Note that Airtel, which is India’s second largest telecom operator, has over 300 million subscribers and over 600 million internet users.
