Google and Reliance Jio Infocomm Ltd, had tried to capture the budget smartphone segment in India in the past, but they couldn’t pull through. Now they have come together to create a whole new android based operating system to help in the development of new budget smartphones catered to the Indian Public.
Google has pledged 10 billion in India for the next five to seven years, through that they focused on consolidating its position in the digital ecosystem in India. Facebook invested $5.7 billion in the Reliance Jio platform, which has garnered over 400 million subscribers in a span of 4 years. Facebook is the largest minority stakeholder in the Jio Platform. Google has also invested in Jio and that new investment gave a platform for Jio for an equity valuation of $ 58 billion.
Jio platform also started to operate a range of digital services like a video conferencing app and it also includes a music streaming player. Some of the investors in India believe that buying a stake in Jio platforms would help them to lower their regulatory burden which they currently face in India. Their combination may lead to disrupting the future phone and entry-level smartphone markets. They are focused on the Indian’s who don’t own a smartphone while improving the mobile experience as well. The reason for believing so was, the Reliance Jio Platforms owner Mukesh Ambani who is India’s richest man and along with his closeness to the political party in India has made an extraordinary contribution to India’s technological progress.
The main contribution of Jio was to expand telecommunication infrastructure and low-cost phones. The new strategy by Jio is to bring affordable internet to hundreds of millions of new subscribers. Now, Jio is focused on creating even more developments in India in areas of education, entertainment, digital service and, health care that leads to the growth of our economy.
The first company that invested in the Jio platform was Facebook with an investment of $5.7 billion to get a 10% stake, which was announced in April. This deal has received all regulatory approvals: Mukesh Ambani, Jio and WhatsApp will now join together to help India’s small businesses to connect them with customers.
The partnership with google helped to develop and launch a new 5G supported affordable entry-level smartphones and also helped to develop an operating system based on android. The partnership with Google will accelerate the shift to smartphones with pricing and new technologies besides increasing the penetration of low-cost smartphones.
Through programs such as the Internet Saathi, Google Pay has expanded its presence in India.
