After investing in Reliance Jio, tech giant Google is likely to invest in India’s second-largest telecom operator Airtel. Google purchased a 7.73 percent stake in Jio platforms for Rs. 33,737 crores. Both Google and Jio are developing affordable 4G and 5G smartphones for the Indian market.
Notably, the company is in an advanced stage of discussion with the telecom operator for the last year. The Google and Airtel deal is expected to be large, reports TOI. Both companies have not shared their views on the same yet, but still, if the latter manages to get the investment, then the telco might clear some amount of dues.
Reliance Jio Disrupted Telecom Industry
It is worth noting that the free voice calls and affordable data prices of Reliance Jio disrupted the entire telecom industry. The voice calls used to contribute 70 to 75 percent of the total revenue of Airtel and Vodafone-Idea. In addition, the mounting adjusted gross revenue dues are affecting the sector and its financial condition is deteriorating.
“The entry of Google adds strength to the balance sheet of Airtel. Also, it helps the company strategically as Google brings in innovation capabilities and strength on data analytics. Google’s data monetization is far superior to any other company in the world, and it can help Airtel monetize its data much better to improve its realizations and profitability,” a top analyst was quoted by the publication.
Airtel Board Meeting On August 29
Meanwhile, Airtel is conducting a board meeting on August 29, 2021 (Sunday) to raise money so that it can play or clear all dues before the actual time. The company has to clear AGR and spectrum dues by the end of this financial year-end.
“We wish to inform you that a meeting of the board of directors of the company is scheduled on Sunday, August 29, 2021, to inter-alia consider various capital raising options through equity or equity-linked or debt instruments or any combination thereof, as the board may deem appropriate,” Airtel said.
It is important to note that the Google and Airtel investment comes before the board meeting, which means there are high chances that the latter might announce something on that front.
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Story first published: Saturday, August 28, 2021, 12:27 [IST]