The agreement between US giant Google and Airtel, the first Indian mobile telephone operator, marks its indirect entry into the shareholding of Airtel Africa and opens the way for developing new smartphone access offers, a sector dominated in Africa by Chinese players, who still risk being subject to US sanctions and a technological blockade.
In a joint statement published on 28 January, the Indian telecoms group Bharti Airtel (present in 14 African countries) and the US telecoms giant Google announced a “multi-year and long-term” partnership.
The agreement, made through the $10bn Google India Digitalisation Fund and launched in July 2020, focuses on the large Asian market.
In detail, it includes a $700m investment to acquire 1.28% of Bharti Airtel and up to $300m that “will go towards implementing commercial agreements.”
Last October, Google, which has been led by Indo-American entrepreneur Sundar Pichai since 2015, said it would invest $1bn over five years “to support the continent’s digital transformation.”
Smartphones, a sector with great potential
Although the first part of the agreement with Airtel only indirectly concerns the continent, it does mark the US colossus’ symbolic entry into the shareholding of one of the African telecom leaders. Bharti Airtel Limited holds about 67% of Airtel Africa Plc (of which 56% directly), which is listed in London and brings together the telecoms group’s subsidiaries in 14 African countries, including Nigeria, the DRC, Congo-Brazzaville, Kenya and Gabon. The US firm obtains an indirect share of some 0.7% of Airtel Africa, according to our calculations.
The second aspect of the partnership could affect African markets more directly. “Under this first commercial agreement, Airtel and Google will work together to develop Airtel’s extensive range of Android devices available to consumers through innovative affordability programmes,” said the two partners.
“Together, our companies will continue to explore other opportunities to reduce barriers to smartphone ownership across a range of price points, in partnership with various device manufacturers,” the Airtel and Google statement added.
Although the first part of the agreement with Airtel only indirectly concerns the continent, it does mark the US colossus’ symbolic entry into the shareholding of one of the African telecom leaders. Bharti Airtel Limited holds about 67% of Airtel Africa Plc (of which 56% directly), which is listed in London and brings together the telecoms group’s subsidiaries in 14 African countries, including Nigeria, the DRC, Congo-Brazzaville, Kenya and Gabon. The US firm obtains an indirect share of some 0.7% of Airtel Africa, according to our calculations.
The second aspect of the partnership could affect African markets more directly. “Under this first commercial agreement, Airtel and Google will work together to develop Airtel’s extensive range of Android devices available to consumers through innovative affordability programmes,” said the two partners.
“Together, our companies will continue to explore other opportunities to reduce barriers to smartphone ownership across a range of price points, in partnership with various device manufacturers,” the Airtel and Google statement added.
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