Indian telecom scenario is stressed and to help that scenario Google is investing in the telecom company Vodafone Idea. Google will buy a 5% stake in Vodafone Idea. Google will help the struggling Vodafone to stand up in the fastest-growing market.
"One of the people said Google was considering buying a stake of about 5% in Vodafone Idea, a partnership between the UK telecom company and India's Aditya Birla Group that has been under severe financial strain. Another said the process was at a very early stage," the report claimed.
The report was not acknowledged by both Google and Vodafone.
The report also stated that Google’s parent company Alphabet is also in the race to acquire a small part in the Jio platform but lagged.
"Pursuing Vodafone Idea instead would potentially pit Google against Facebook and an increasingly dominant Jio but the company could also make multiple investments in India," the FT report mentioned.
Prabhu Ram said Head-Industry Intelligence Group, CMR, Google is interested in buying a 5% stake in Vodafone Idea to give impetus to its India Push.
"India is the fastest-growing mobile-first nation, with significant digital transformation at its core. Also, the move may be to take on the Facebook-backed Jio behemoth," Ram said in a statement.
The Supreme Court also gave relief to Vodafone Idea by allowing for a tax refund of Rs 733 crore.
According to the estimate by the Department of Telecommunications (DOT), the Company has over Rs 53,000 crore in adjusted Gross Revenue (AGR).
Towards the AGR liability the company earlier paid 2,500 crores on February 17, 2020, and a further sum of 1,000 crores on February 20.
The company has also paid Rs 3,354 crore to the DOT, settling the balance part of the principal amount of the AGR liability. The company has paid a total of Rs 6,854 crore towards the AGR dues.
Over the last few months, leading technology investors such as Facebook, Silver Lake, Vista, General Atlantic, and KKR have announced an investment of Rs 78,562 crore into Jio platforms.