The tech-giant Google has been looking around options to acquire a 5% stake in Vodafone Idea which has been in burdened under debt and owes a whopping amount of more than Rs 54000 crores to the government. As per the source, it has been stated that this investment would actually be a win-win situation for both the parties, as Vodafone Idea needs this favour so to say more than ever now and also Google gets a cheap entry into the telecommunication market.
This investment by Google would be a lifesaver for Vodafone Idea as it owes a large sum to the government. The Chairman of Vodafone Idea Kumar Mangalam Birla also stated that they might have to shut down their shops if they do not get any assistance or relief from the government. Reports have also stated that this deal between Google and Vodafone Idea will bring in some fierce competition in the worlds largest growing data consumption markets.
With a continuous growth rate of active internet users on a daily basis, there is an expectation to see up to an increase in 100 million users in the next three years. In the year 2015, Google has come up with a strategy to push up internet usage by tying up with the Ministry of Indian Railways and providing free wifi to all in over more than 400 railway station.
This plan dint see much success and hence had to be taken down the road. But now with an expected alliance between Google and Vodafone Idea, Google has a tremendous opportunity to print in some mind wrecking changes in the data consumption market and we cannot wait to see where this goes.