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Amazon to Pump $2 Billion Into Airtel Business: Report

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According to a report with the aid of Reuters, Amazon is in talks with Indian telecom large Bharti Airtel over a potential investment. If the deal finalizes, The eCommerce giant would investments around $2 Billion into Airtel’s business and get a 5% stake in go back, the sources said.

This makes Amazon the third large US-based company to seek investment in Indian telecom companies in current months. previously, We heard about the fb-Reliance Jio deal, which became observed via the Alphabet Inc. Exploring investment opportunities in Vodafone idea Ltd.

The news comes at a time when the Indian economy, Along with other nations, is on a downhill owing to the Coronavirus pandemic, And potential foreign investments could give it a much-wanted boost.

Right now, The talks are within the early stages, And it’s viable that the deal might not come to fruition. Both Amazon and Airtel have declined to comment on the matter.

However, according to the report, , A backup plan can be in region if the deal doesn’t finalize, In which Airtel customers ought to enjoy discounts on Amazon’s .Products

Talking of Amazon, The business enterprise already has a strong foothold within the online purchasing market in India. But it could leverage Airtel’s massive network of offline stores to promote its hardware, such as Echo-branded smart audio system. additionally, Airtel’s fiber network could assist Amazon cut down the prices of its cloud services including AWS.

The Indian telecom area noticed a prime shift after the arrival of Reliance Jio. With its pan-India 4G community, The company actually showered unlimited free internet on the Indian population. But this has also added problems for existing telecom players.

While most important telcos like Bharti Airtel survived the storm, Smaller ones either needed to shut down or merge with others, as we saw within the case of Vodafone’s acquisition of idea. Once leading the pack, currently, Airtel is the third largest telecom company after Reliance Jio and Vodafone concept

In addition to telecom, Jio is getting into other areas as well. The list consists of an internet purchasing platform referred to as JioMart, Where the company is selling groceries and competes with hooked up players like BigBasket and Grofers.

 

 

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