India’s telecom wars to heat up? Google eyes 5% stake in struggling Vodafone-Idea – report

Struggling telecom major Vodafone-Idea could see internet giant Google invest in the company for a 5% equity stake, the Financial Times reported citing unidentified sources. The investment would help Vodafone-Idea, as the company tries to stay on its feet after the Supreme Court refused to budge on the Adjusted Gross Revenue (AGR) dues. If successful, the deal will put Google and Facebook in the same ring to battle it out for supremacy in India’s growing mobile internet market. Facebook, earlier this month, agreed to invest Rs 43,574 crore in Mukesh Ambani’s Jio Platforms for a 10% stake.

The report said Google is considering to pick a 5% stake in Vodafone-Idea, which is a joint venture between United Kingdom-based Vodafone and India’s Aditya Birla Group. However, the talks are said to be in a very early stage. According to various reports, Google’s parent company Alphabet has also considered investing in Jio platforms. Vodafone-Idea shares have fallen 56% over the last one year. The telecom giant that emerged after the merger of Vodafone and Idea, has been asked to pay Rs 58,000 crore by the Department of Telecommunications. The firm’s self-assessment puts the AGR dues figures at Rs 21,533 crore of which the company had paid Rs 6,500 crore till the middle of March.