What are the implications of FB-JIO Deal? Ex-Airtel CEO Explains
Ex-CEO of Bharti Airtel Sanjay Kapur says that FB-Jio deal will help the latter to enter the e-commerce market
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Video Editor: Vivek Gupta
Facebook and Reliance have entered a multi-billion dollar partnership, making Facebook the largest minority stakeholder in Reliance Jio (with a 9.9 percent stake). Telecom expert and Ex-CEO of Bharti Airtel Sanjay Kapur tells The Quint that a mega deal like this during a time of a pandemic is a huge win for both the companies.
“Facebook’s tie-up with Jio is a clever and yet safe move,” he argues. However, he also notes that this is not an exclusive deal and Facebook may tie up with other telcos in the future, so the fears of a duopoly with Jio dominating the sector might not come to fruition.
Kapur says that the main objective behind this deal is for Jio to boost its entry into the e-commerce industry which is touted to be a “decentralized” one, utilising ‘kirana’ stores and other local shops. The key player, he says in this, is WhatsApp since close to a billion citizens in India use the app. “WhatsApp has potency like no other app”, he says.
On the flipside, Facebook might finally get the regulatory approvals required to introduce WhatsApp pay in India which in turn will be a huge boost for Jio’s e-commerce venture which Kapur says, should be using Facebook’s engine.
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