There was a time when we used to wonder whether India ever be able
to create a company like Google. Well, we can now ask the USA if it will ever
be able to create a company like Reliance Jio. Due to the policies of globalization
and liberalization, the distant dream has become a reality now. The idea of
collaboration in business yields mutual benefit due to the synergies of
resources, expertise, R & D.
The pandemic invited unforeseen trouble for every brand, but for
Reliance Jio, the past few months, has been highly productive. The company
attracted foreign investments in exchange for stakes in its promising business
and vision for the future. To list down, some of the investors are Google,
Facebook, Silver Lake Partners, KKR, General Atlantic, among others. Reliance
Jio is now debt-free.
Earlier, Mr. Sundar Pichai, in a video call with Prime Minister
Shri Narendra Modi had informed that Alphabet's Google plans to invest around
$10 billion in India. The funding by Google for Jio is part of its investment
plans in India.
It is interesting to note that brands like Google and Facebook
have historically never seen eye to eye in the business world. But with Jio,
both have become its allies and invested billions towards a single vision. It
would be interesting to see the synergies and disruptions these global
behemoths bring about.
As per the partnership deal, Google would build an Android
Operating System to power a low-cost 4G and even 5G smartphone that Reliance
would design. This will again be a game-changer in India's smartphone and
telephone sector. It would also result in severe challenges for Chinese brands
that continue to dominate the Indian smartphone market.
"Google is proud to invest Rs 33,737 crore into Jio. I am
excited that our collaboration will focus on increasing access for hundreds of
millions of Indians who don't currently own a smartphone while improving the
mobile experience for all," said Mr. Sundar Pichai, CEO of Google and
Alphabet. This can further be seen as a stage where telecom companies join
hands with smartphone makers to design devices for specific telecom networks.
The Reliance Jio platforms have investments from global financial
and technology giants like Intel and Qualcomm, which further adds weight to its
ambitions. Jio has sought a spectrum in certain frequencies from the Department
of Telecom for holding 5G trials in India. Jio plans to take its 5G technology
to the overseas market as well. What remains to be seen is if Mr. Ambani willing
to invite more strategic investments. He has already stated that his company's
focus will be in line with the government's 'aatmanirbhar bharat abhiyan,' meaning self-reliant India.
With Reliance Jio, India must have set an example of Indian firms
making it big in the world. Jio has just showcased the Jio Glass, a mixed
reality product that is similar to Google Glass. Amazon is also looking to
invest in Reliance Retail groups. It might add another feather to Jio's hat.
Reliance Jio has done what others could not think of. It entered an
already cluttered market and carved a niche for itself. Mukesh Ambani has said,"
Data is the new oil." Now we know why he said so.
Written by - Harshit Somani
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