Facebook, the world's largest social media company, can buy a 10 percent stake in India's largest telecom company Reliance Jio. A report by the Financial Times has claimed. The report says that Reliance Industries Limited wants to make its telecom service arm Jio debt-free by 31st March 2020. That is why this deal is happening. The report says that the deal will be worth thousands of crores of rupees. This deal could be worth billions of dollars. Reliance Jio has a base of nearly 37 million subscribers in India. Analyst Bernatin has made the company's valuation of about $60 billion, meaning its 10 percent stake deal could be at about $6 billion. However, Facebook and Reliance Jio have not responded in this regard. The report says that the deal may be delayed due to lockdown in India due to coronavirus. Reliance Jio started functioning in September 2016. As soon as it came in, it started a price war in the Indian telecom sector.
The company offers data and voice services at meager rates. India's telecom sector is currently devastated by the AGR problem, but Reliance Jio remains firmly in the works. Although the company wants to eliminate its debts and bring it to zero, the company is probably trying to sell the stake. It has already tied up with Reliance Microsoft to launch cloud computing services in India. Social media giant Facebook is likely to buy a 10 percent stake in Reliance Jio, a telecom giant of India's giant Reliance Industries. According to an international economic newspaper, the two groups may soon compromise. According to the London newspaper Financial Times, Facebook, a company led by Mark Jakberg, could soon enter into an initial agreement for a 10 percent stake in Mukesh Ambani-led Jio.
According to reports, the talks between Reliance and Facebook had gone a long way, but the coronavirus outbreak has hampered the ban on trips worldwide. Through this deal, Facebook will enter India's telecom and digital sector. It is noteworthy that Jio is active in several segments like mobile telecom, home broadband, e-commerce.
Reliance Jio is the country's largest telecom company
Reliance Jio is the country's largest telecom company in terms of customers. As per the latest TRAIdata, Reliance Jio had 37 crore subscribers till December 2019. Vodafone-Idea was the second largest telecom company in December with 332 crore subscribers. Bharti Airtel was the third-largest company with 32.72 crore subscribers in December 2019. According to TRAI, the state-of-the-state telecom company BSNL had 11.8 crore subscribers, and MTNL had 33.76 lakh subscribers in this month.
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