Sundar Pichai speaks during an event to introduce Google Pixel phone and other Google products in … [+]
Alphabet Inc’s Google on Friday said it is investing up to $1 billion in Bharti Airtel, including $700 million to buy a 1.28% stake in India’s second-largest telecom operator, which is owned by billionaire Sunil Mittal.
The deal, announced jointly by the two companies, is intended to accelerate the growth of India’s digital ecosystem.
In addition to buying a stake in Bharti Airtel, at 734 rupees ($9.77) per share, Google will invest up to $300 million for commercial agreements over the next five years. The deal will be subject to necessary regulatory approvals.
In July 2020, Google invested $4.5 billion in India’s largest operator, Jio, owned by tycoon Mukesh Ambani. The investments are a part of the company’s $10 billion investment plan for the India Digitization Fund.
Google and Alphabet CEO Sundar Pichai, in a statement, said, “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.”
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In one of the first commercial agreements, Airtel and Google will collaborate in bringing more affordable smartphones that will be made with various device manufacturers. The two companies will also explore the 5G network technology for India. Airtel says that it currently serves over 1 million small and medium businesses in India with its enterprise connectivity offering, and aims to reach more through the deal.
“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,” Sunil Mittal, chairman of Bharti Airtel, said.
Mittal, who controls Bharti Airtel, was ranked the 12th richest person in India last year with a net worth of $14.8 billion, according to Forbes.
Bharti Airtel says it has more than 480 million customers in 17 countries in South Asia and Africa.
Sunil Mittal attends the India Mobile Congress 2017 in New Delhi, India on September 27, 2017.
