The talk in the business circles all of last week was Facebook's gargantuan investment --- $5.7 billion --- in Reliance Industries' wholly-owned subsidiary Jio Platforms.
The deal also seems to have an impact beyond the two protagonist companies. It carries an import that augurs well for the Indian market in general.
As per whispers in the business circles, Facebook's aggressive gambit is said to have impelled other tech biggies like Microsoft, Amazon and Google to look for ways to invest in Indian companies and improve their own access to the Indian market, which especially in the post-Covid-19 world will be even more attractive (considering the possible issues with China).
These corporate behemoths are already on the lookout for major partnerships with retails stores, digital payments and telecom infrastructure companies.
Hope for beleaguered telcos
More importantly, the FB-Jio tie-up also seems to have paved the road for Jio's rivals Vodafone Idea and Bharti Airtel to improve their valuation, and also increase their prospects for raising fresh funds and equity tie-ups.
The belief is that the Jio deal will set the stage for other operators to offer additional services to tech giants, and look for synergy and attract investments.
“The Reliance-Facebook deal will encourage other telcos to seek similar tie-ups, given that the tide is turning for the sector,” according to a Vodafone Idea executive quoted in Business Standard.
“With more and more people staying home on account of the virus outbreak, demand for seamless digital products will increase. Tech companies are bound to love this new paradigm shift and would like to tie up with local Indian companies — in telecom and retail,” the executive is reported to have said.
If indeed global big cats come looking for telecom partners in India, then it would be a god-send for the beleaguered Indian telcos like Vodafone Idea and Bharti Airtel. They respectively owe the government Rs 54,000 crore and Rs 35,600 crore.
The coming days will be exciting if you are a telecom operator in India.
