Google To Co-Develop Affordable Smartphone
July 18, 2020Google recently signed an agreement to invest $4.5 billion in Jio Platforms Ltd, an Indian telecommunications company. The deal will give the Search giant a 7.73% stake in the latter, and allow it to build better and more beneficial technology for Indian consumers. This is its first of several investments in the country, which in total, will amount to $10 billion.
The collaboration will see the two companies working together to develop an affordable smartphone for India. This way, millions more of Indians will have access to smartphones and to an extent, accessibility to the internet. India has a population of over 1.3 billion, and a majority of them do not have sufficient access to the internet.
But, as noble as this effort may seem, Google is simply investing in its own future. It stands to make significant market gains, should the country embrace its technology and ecosystem. About half India’s population is below the age of 25, and allowing them access to the internet and to an extent its services, will result in a cash windfall for the company.
Investing in Jio is only its first step, in what could eventually become a sizable investment in a country that is eager to embrace cutting-edge technology. It is also in the midst of improving its apps and services, offering them in more local languages and created offline versions to help those facing network constraints.
Google has had a presence in India since 2004, with its Bangalore and Hyderabad campuses. It is investing so heavily in the country because it believes that India is central to its next billion users initiative. That’s why it has provided its tools to small businesses, lessened the digital divides with initiatives like Internet Saathi and is helping India adopt the power of AI.
Jio Platforms, a subsidiary of Reliance Industries Limited, has made several contributions to India’s technology sector. It has invested in expanding the country’s telecommunications infrastructure, loc-cost phones and improved access to affordable internet. Jio also invested in digital services, education, healthcare and entertainment.
