The season of pandemic, among all crises, brings a range of investments to India, particularly in the telecommunication sector. After Facebook acquiring 10% stake in Jio — India’s largest telecom company and Nokia signing a 7500 crore rupee deal with Airtel, Google — the global technology giant is reportedly in talks with Vodafone Idea to acquire its 5% stake.
Alphabet Inc — Google’s parent company was also in talks with Reliance Jio for big investments but was beaten by Facebook. If the deal between Google and Vodafone India takes place, there will be a fresh rivalry between the two American giants on display in the vibrant Indian market. After this, Google could be able to make multiple investments in India. Although there has not been any official word from Vodafone Idea, reports are suggesting there might be a final announcement after the deal comes into its final shape.
Since Vodafone Idea has been struggling to find its feet in the Jio-dominated Indian telecom market, the collaboration with the world’s biggest tech giant will be of tremendous support to its operation in the South Asian country. The market valuation of Vodafone Idea is just about ₹16.7 crore, while Reliance Jio is valued at ₹4.87 trillion.
The deal becomes even more important for the Indian brand, since the Supreme Court of India has recently ordered it to pay ₹53,000 crore adjusted gross revenues dues to the government. It has also been learnt that Jio is planning to secure a $2 billion deal with Microsoft. With investments pouring in rival companies, Vodafone Idea is not only under the pressure of securing its own market but also the weight of competition.
With a broadband network of 340,000 sites, Vodafone Idea holds a sizeable market in India. It is owned by Vodafone PLC of the United Kingdom and Aditya Birla group of India.