Google will invest as much as $1 billion in the Indian telecom operator Airtel, the latest in a series of bets the search giant has made in the world’s second largest internet market as part of a $10 billion commitment to the country. Google said it will invest $700 million to acquire a 1.28% stake in Airtel, the second largest telecom operator in India with over 300 million subscribers and pour in up to $300 million more to explore multi-year commercial agreements with the telco. Airtel is a leading pioneer shaping India’s digital future, and to partner on a shared vision for expanding connectivity and ensuring equitable access to the Internet for more Indians. Announcement comes at a time when Airtel and Vodafone have been scrambling for ways to repay billions of dollars they owe to the Indian government. Vodafone gave away over 35% ownership to New Delhi earlier this month, making the Indian government its largest shareholder.
Vodafone and Airtel compete with Jio Platforms, run by Asia’s richest man, Mukesh Ambani. Jio Platforms has amassed over 400 million subscribers in India, thanks to its cut-rate voice calls and data offerings. Google invested $4.5 billion in Jio Platforms in 2020. Facebook and nearly a dozen more firms have backed the Ambani-controlled firm. Google and Jio Platforms have also collaborated to build a custom Android smartphone that they initially said will be aimed at the masses. But the handset, whose launch was delayed once, is too pricey to reach much of the population. With over 600 million internet users and just as many yet to come online India is one of the last great growth markets for American technology groups. Both Google and Facebook ran programs in the past decade to bring internet connectivity to tens of millions of Indians.