Google will invest up to $1 billion as part of a long-term partnership with Indian telecom Bharti Airtel, designed to boost the country’s digital ecosystem.
The investment, outlined in a Friday (Jan. 28) news release, will be made up of a $700 million equity investment in the company, along with up to $300 million for commercial services. This will include things like programs to make devices more affordable to consumers and offerings designed to accelerate digital inclusion in India.
“The two organizations recognize the importance of a connected India, in empowering businesses as they progress on their Digital Transformation journeys, and building a strong digital ecosystem for consumers everywhere,” the companies said.
“Both organizations are committed to working towards building an open technology ecosystem that serves customers and businesses with innovative digital services, and have agreed to jointly explore and invest across a wide spectrum of areas to create digital solutions that uniquely serve India’s requirements.”
As part of the agreement — still subject to regulatory approval — Google and the New Delhi-based Airtel will work on building up Airtel’s offerings, including a range of Android-enabled devices offered to consumers through affordability programs.
The companies say they want to find ways to lower the barriers to owning a smartphone in partnership with other device manufacturers.
“Airtel and Google share the vision to grow India’s digital dividend through innovative products,” said Airtel Chairman Sunil Bharti Mittal.
“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.”
Read more: Airtel, Qualcomm Team Up For 5G Telecom Push In India
Last year, Airtel formed a partnership with chipmaker and wireless tech company Qualcomm to boost 5G rollout in India. The companies said this collaboration would “create new opportunities for small and medium-sized businesses to become viable players in the deployment of 5G networks.”
“Our networks are fully ready for 5G,” Randeep Sekhon, Bharti Airtel’s chief technology officer, said at the time, adding the two companies’ technologies “will be well placed to usher India into the next era of hyper-fast … digital connectivity.”
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