Google and Airtel have agreed to a multi-year partnership to accelerate the development of India’s digital ecosystem over the long run. Google will make an investment of up to $1 billion in this cooperation, which will be a facet of its Google for India Digitization Fund, as part of the contract conditions. Over the following five years, this fund will act as a possible source of stock investments and a financing mechanism for contractual arrangements that will be discovered and agreed upon on mutually acceptable conditions by all parties.
Description of Google and Airtel Investment Deal
Google’s’ investment in Bharti Airtel will comprise stocks worth $700 million at Rs 734 per share price. To implement the commercial agreements, up to $300 million would be invested in scaling Airtel’s services to consumers to broaden digital access and inclusion all over the ecosystem of digital communication services in India, utilizing new and unique low-cost alternatives to be implemented.
With Google, we are looking forward to developing new solutions incorporated into our network, digital platforms, and the last mile distribution and payment ecosystem to help India expand its digital dividend. We look forward to contributing to the depth and breadth of India’s digital economy by using our future-proof network, online platforms, and payment ecosystem. Despite significant contrasts in their respective perspectives and methodologies, the two groups, Google and Airtel, have decided to partner on a wide variety of projects, including looking into and investing in solutions that are specifically customized to Indian requirements, among other things.
As part of the deal between the two firms, a new initiative created by Google and Airtel will give users an inexpensive selection of Android-powered handsets as part of the agreement. Google and Airtel will investigate several prospects as part of their continuous research to reduce barriers to smartphone ownership across a broad range of prices, in conjunction with a number of mobile manufacturers.
Additionally, in pursuit of their broader strategic goals, Google and Airtel will combine creative deployments of 5G and other technologies into India-specific networking domain use cases.
In addition to co-creating network domain standards and use cases for 5G and other technologies particular to India, Google and Airtel will execute highly advanced implementations as part of the broader strategic aims of the collaboration.
Google is 5G-ready, according to the company. Evolved Packet Core and Software-Defined Networking technologies are already components of Airtel’s network virtualization services. The company intends to increase its usage of the platforms to provide its consumers with a more significant network experience in the future.
Airtel provides enterprise connection services to more than one million small and midsize businesses. This relationship will aid in expanding the Indian cloud ecosystem, which is currently seeing rapid development. Google and Airtel, Both organizations, will concentrate their efforts on defining and developing the cloud ecosystem in India to expedite their respective digital transformation initiatives.
“Airtel is a key innovator creating India’s digital future, and we are happy to cooperate with them on growing connectivity and delivering equal Internet access for Indians,” said Sundar Pichai, CEO of Google and Alphabet. ‘To support our Google for India Digitization Fund’s aim to democratize smartphones, increase connectivity to promote new business models, and assist firms on their road to digitalization, we invest in Airtel in both a commercial and an equity capacity.’ He added further.