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Amazon said to be considering $2 billion stake in Bharti Airtel

The strange big tech arms race in the Indian telecoms sector looks set to escalate further if Amazon buys a major stake in Bharti Airtel.

Scott Bicheno

June 4, 2020

1 Min Read
Amazon said to be considering $2 billion stake in Bharti Airtel

The strange big tech arms race in the Indian telecoms sector looks set to escalate further if Amazon buys a major stake in Bharti Airtel.

The rumour comes courtesy of Reuters, which has had a word with no less than three people who reckon they’re clued up on the situation. They say Amazon is in early-stage talks to buy a stake worth at least $2 billion in Indian mobile operator Bharti Airtel. That would apparently equate to around 5% of the company, although it seems Amazon could double that investment if it got a sudden rush of blood.

While the Indian telecoms market is arguably the number one growth opportunity in the global market, the operators left standing are all in a lot of debt. That, combined with the depressed value of assets thanks to the coronavirus-induced global recession means there are some great investment opportunities. Not only do they offer potential capital growth, having a piece of the action also grants access to billions of Indian punters.

Which explains why US internet giants are showing such an interest. In April Facebook chucked $5.7 billion at Reliance Jio and last week it was reported that Google is having a sniff around Vodafone Idea. While all this cash will doubtless come with major strings attached, this is probably good for the Indian telecoms sector as a whole as it should enable the operators concerned to accelerate their network rollout plans.

About the Author(s)

Scott Bicheno

As the Editorial Director of Telecoms.com, Scott oversees all editorial activity on the site and also manages the Telecoms.com Intelligence arm, which focuses on analysis and bespoke content.
Scott has been covering the mobile phone and broader technology industries for over ten years. Prior to Telecoms.com Scott was the primary smartphone specialist at industry analyst Strategy Analytics’. Before that Scott was a technology journalist, covering the PC and telecoms sectors from a business perspective.
Follow him @scottbicheno

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