Amazon
.com may follow its American peer Facebook’s footsteps in securing a slice of India’s booming telecom market.
The e-commerce giant, which has
invested over $6.5 billion in India
, is in early-stage talks to buy a stake worth at least $2 billion in Bharti Airtel, the third-largest telecom operator in India, according to unnamed sources cited by Reuters
.
Amazon’s interest in Bharti Airtel comes as
is said to be in separate talks to buy stake in Vodafone Idea
, the second largest telecom operator in India. In April, their fellow rival Facebook bought a 9.99% stake in the nation’s top telecom operator
, Reliance Jio Platforms. According to local media reports, Microsoft is also in talks with Reliance Jio
Platforms and could invest as much as $2 billion
.
Facebook’s
investment shows India is a major new battleground for Big Tech, said Amit Pau, a former Vodafone
Global Group MD and now COO and Partner at Accloud. “Facebook’s focused attack on Amazon in Indian e-commerce through its partnership with Jio Platforms is the firing gun of an epic showdown between the world’s biggest companies that will see Indian consumers win better services through digitization and boost the economy.”
The American giants have formed multiple partnerships with telecom operators in India, a key overseas market for them, over the years to expand their reach in the nation.
Microsoft
has a partnership with Reliance Jio to bring Office 365 to millions of small businesses at subsidized cost
. Google maintains a similar partnership with Airtel
for its Google Cloud suite.
Amazon, which leads the cloud market in India, currently does not maintain any similar deals with a telecom operator —
though it had a partnership with Bharti Airtel
in the past.