InvestorQ : How do you think Google will benefit by taking a stake in a loss making telecom company like Vodafone Idea?
NISHA Nayak made post

How do you think Google will benefit by taking a stake in a loss making telecom company like Vodafone Idea?

Answer
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Mitali Bhutta answered.
4 months ago


While it is not clear at this point of time, it is certain that an investment in Vodafone Idea by Google will certainly heat up the race to create the next big digital ecosystem in India. Google has already announced a partnership with Airtel in Jan-20 to extend their G-suite services to Airtel subscribers. This clearly appears to be a response to the series of stake sales undertaken by Reliance Jio to global PE investors including KKR, General Atlantic, Vista Equity Partners and Silver Lake; apart from Facebook. Outside of China, India is already the fastest growing digital services market. However, Vodafone Idea recently launched Cloud Express Connect solution which extends secure MPLS networks to Microsoft Azure and Google. This solution along with Internet of things (IOT) and enterprise mobility, will allow Google to fully exploit the synergies with Vodafone Idea’s customer base. Vodafone is still a more recognized telecom name globally. Perhaps, Google is also trying to tap the huge spurt in ecommerce likely after COVID-19. That could be the big bet via Vodafone Idea.