The discussions were at an early stage and both companies refused comment on grounds that it would amount to giving credence to speculations. However, there is little doubt that both Airtel and Amazon could benefit from the deal.
Amazon could be set to follow Facebook’s footsteps into the Indian telecom market through a strategic investment in Bharti Airtel. Media reports said the US conglomerate could pay up to $2 billion for a 5% stake in the Indian telecommunications company.
However, there is a catch as neither of the two companies were ready to confirm the move, each claiming that it is nothing more than rumours though Bharti Airtel made it appear as a routine conversation with one among the many OTT players to push Amazon Prime services to the mobile operator’s 320 million subscribers.
The report appears plausible, given the sudden bout of interest in India’s mobile services and eCommerce marketplace. Facebook set the ball rolling with a $5.7 billion investment in Jio Platforms, a subsidiary of India’s largest enterprise Reliance. Reports of Google seeking to acquire state in India’s second largest telecom operator Vodafone Idea surfaced thereafter.
Amazon’s latest move was reported by Reuters which cited unnamed sources to suggest that the discussions were in a very early stage for the planned investment.
