Amazon and Airtel join hands together in India?
Jeya Suriya -
Bezos's Amazon is a global leader in the World Market whereas Mittal's Airtel is a National leader in the Subcontinent market. Both the titans have made the breaking news as rumours are suggesting Amazon's investment in Airtel.
Reports suggest that locutions between Bharti Airtel and Amazon are at an early-flowering stage and the contingencies of the agreement could change as discussions flow further. However, there is no certitude that the negotiations will traverse to an irrevocable transaction any point quickly claims another source close to the company.
Currently, Singtel holds 35% of share in Mittal's Bharti Airtel. So, it is also not clear whether Jeff's company would buy the stake either from Bharti or Singtel.
It is also reported that the Seattle based giant is trying to finance 5% in Indian telecom operator Bharti Airtel which would cost them $2 Billion. A source closed to the company reported that Amazon would increase the stake based on the growth.
Also, Bharti Airtel would need endowments to replenish spectrum as they got expired in certain zones. Indian Government is planning to announce 5G soon and Bharti group will also need funds to acquire 5G spectrum for expansion of their services.
An Airtel spokesperson spoke to the media, “We work with all digital and OTT players and have a profound commitment with them to carry their commodities, content and services for our extensive consumer base. Past that there is no other venture to describe". Also, An Amazon spokesperson spoke to a US Portal “The news does not suggest explanations on speculation of what we may or may not do in eventuality”.
National telecom companies such as Vodafone and Jio have been scouting for repositories to extend operations and scalp their mortgages. Since April 22, Jio part of Ambani's Reliance group has fostered ₹78,562 crores from investors such as Facebook, Silver Lake, Vista, General Atlantic and KKR. A couple of months earlier reports suggested Google had inducted negotiations to obtain a stake of up to 5 per cent in Vodafone India.
It is also to be noted that with a little over 300 million consumers, Bharti Airtel ranks third in the five-player Indian telecom market.