Why Google and Facebook are investing in Reliance Jio
Team Udayavani, Jul 17, 2020, 2:13 PM IST
Google announced it would invest $4.5 billion in India’s Jio Platforms, the unit of Reliance Industries overseeing music, movie, and telecommunications ventures. The investment buys Google a 7.7 percent stake in Jio.
Earlier, Facebook invested Rs 43,574 crore in Jio Platforms, a unit of Reliance Industries NSE 0.47 % Ltd (RIL), for a 9.99% stake
Since April, Jio has raised more than $20 billion from investors including General Atlantic, Qualcomm, Intel, and Silver Lake.
Reliance is expected to become the dominant national player in 5G, with a growing share of the total cellular market. As other global markets are tapped out, India’s appeal is that it still has as many as half a billion people who haven’t come online which means Google and Facebook will have 500 million potential new users
Jio looks set to buy a large portion of the airwaves and be among the first to deploy 5G-ready products for hundreds of millions of Indians.
Also,India banned 59 apps, all owned by Chinese companies, citing data concerns. India’s data sovereignty movement will also put limits on all global companies that collect data. In this scenario, Reliance will be the biggest domestic winner
In 2019, Mukesh Ambani said, “ Data is the new oil and data is the new wealth. India’s data must be controlled and owned by Indian people, and not by corporates, especially global corporations. Today, we have to collectively launch a new movement against data colonisation”
The movement will bring focus on the Indian operations of the US tech giants Google, Facebook, Microsoft and Amazon.
Facebook has faced trouble getting its payments system and Google is facing an antitrust investigation.This is considered to be the hidden agenda behind Google and Facebook investments in Jio
On the other hand, Jio’s partnership with Google will help in increasing its expertise in smart homes, connected cars, and software. Also, low-cost 5G Jio smartphone could be powered by Google’s Android system. Google and Jio are working together on an Android-based operating system, and also building an affordable smartphone
Jio’s partnership with Facebook could enable synergies through WhatsApp, allowing Reliance to dominate the digital money and e-commerce markets through local corner stores. The company recently launched JioMart, a marketplace that connects consumers with shopowners primarily for basic groceries. It announced that JioMart will expand into fashion, electronics and phones.
Apart from that, Reliance also showed Jio Glass, a mixed-reality product which combines what you see with images projected onto spectacles, similar to Google Glass. It would be used particularly for classroom situations as well as company meetings.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Fmr Maha CM Devendra Fadnavis tests positive for COVID-19
K’taka COVID-19 update: 4471 new cases, 7153 discharges, 52 deaths on Oct 23
Indian boy in Dubai designs easy solution to hang heavy objects from the wall without drilling holes
Related Articles More
Chamarajnagar: Constable with dist police receives 4 gold medals in Economics
Why commentator Isa Guha hit back at Geoffrey Boycott’s ‘equality over quality’ comment?
Who is Daphne du Maurier, author of Rebecca?
Remdesivir becomes first drug to be fully approved for COVID-19 by US: All you need to know
Netflix film ‘The Trial of the Chicago 7’, puts the spotlight on a group of anti–Vietnam War protesters