Jio Facebook Deal: How much impact on telecom and retail sector
Social media site Facebook has invested Rs 43,574 crore in Reliance Jio, the digital platform of Indian company Reliance Industries.
With this deal, Facebook has become a 9.99 per cent shareholder in Reliance Jio.
Facebook has shared the information related to this deal on its newsroom page and wrote that this the investment shows our commitment to India.
According to the information on the Facebook newsroom page, ‘India is changing very rapidly socially and economically by adopting digital technology. In the last five years, around 560 million people have started using the Internet in India.
Sharing information about this deal, Mukesh Ambani, the owner of Reliance Jio Company, has released a video message.
Mukesh Ambani said in his message that this deal is a very important step towards the digital transformation of India. These deals will play an important role in making people stronger, capable and more prosperous through the digital economy. Our partnership will make a big contribution in making India the most important digital society in the world.
He also said that Facebook WhatsApp has become an important friend in everyone’s life not only in India but in the world, which is bringing not only family but also relatives, friends and business. Similarly, Jio is seen as the largest connectivity platform in India.
Experts are of the opinion that when the two big companies in different sectors come together, they will provide each other benefit and strength and also leave a big impact on the market.
To understand this strength and effectiveness it is very important to understand how much expansion of both companies in India.
In less than four years, Reliance Jio has managed to bring 38.8 crore people to the Internet.
Presently, Facebook users are more than any other country in India. On the other hand, if you talk about its chat-app WhatsApp, then it has more than 30 crore subscribers. READ MORE
Therefore, the importance of this partnership increases. Since Reliance Jio is the number one player in the telecom sector, this partnership is bound to have an impact on telecom.
There are four important players in India’s telecom sector — Reliance Jio, Airtel, Vodafone and BSNL.
BSNL is a government company, so first let’s talk about private companies. Experts in this field believe that now this investment will see another type of healthy competition in telecom.
According to telecom experts on the whole matter. He says, “This investment will in a way play an important role in making Jio a strong player in the market. Now people will consider Jio as a bigger player in the telecom sector than earlier.”
Some others consider this to be good for India’s broadband sector. Their opinion, on this partnership, is not only a ‘win-win’ agreement for Facebook and Reliance Jio, but Airtel and Vodafone also do no more harm than this.
They say to look at this entire investment from two angles. The first broadband market and second the financial health of companies.
According to him, if this investment was in Airtel or Vodafone, his financial position would have been stronger. Especially now that both the companies have to pay a huge amount on the order of the Supreme Court, it is not good news for them that the investment is coming to their rival. But it has to be noted that after the recent increase in their service rates, the revenues of both companies have also increased.
But from the market point of view, now competition among the three companies will increase further. Airtel and Vodafone also have a good user base and infrastructure. In future, they will also seek such a partner. If this happens, the economy of the country which is increasing towards digital in the Kovid-19 era will get the benefit.
But Rajesh Kumar has a different opinion. Rajesh has been writing on the telecom sector for a long time and is a senior blogger.
According to him, Vodafone has now opted out of the telecom game in India. It is true that the central government will not let him die. This will not improve the message outside the country. The company’s financial condition is not good. Now it is completely dependent on the central government how many days it gives them.
The Supreme Court of India has asked Vodafone and Airtel to pay an amount of about 83,000 crores in the form of license fees and interest.
Regarding Airtel, Rajesh says, “Airtel has made preparations for expansion in Africa. Their runway is ready, the bus is late to take off. Expansion in Africa is going to be its biggest growth factor.”
Talking about the stock market since the news of Facebook and Reliance, Reliance Jio, which is part of Reliance Industries, shares are up 10%.
Mukesh Ambani has also said in a video statement released on this occasion that Jio Mart is the new e-commerce platform of Jio. Together with WhatsApp, about 3 crores local grocery stores will change the picture in the coming days.
Now easily, you will not only be able to order everyday use items from these shops but will also be able to buy and pay. This will also speed up delivery, there will not be any hassle of going to the shops. Local grocery stores will also help in increasing their business.
Facebook has also said in its statement that our goal is to provide new opportunities for all types of business but especially to enable more than 60 million small businesses spread across India. Because these small businesses are responsible for most jobs in the country.
It is obvious that when there is talk of going to jobs everywhere in the world, a company is talking about opening new job opportunities, then this will give a boost to the market.
But according to Rajesh, both companies have not told how much they will charge the consumer for this. It is obvious that when two companies will deliver your goods to the house, give an app to the grocer, then they will also take something from you.
Therefore, until the whole process is revealed, there is a need to wait a bit.
According to Rajesh, the whole deal can be understood in this way. “This is the preparation for tomorrow’s data platform, where all small and big companies can do business. Jio wants everyone to use its platform, whether it is a grocery store in your neighbourhood or a big mall shop. Everyone could earn one rupee and make a profit. “
So will this investment open up new employment opportunities?
Utkarsh believes that new startups will be able to enjoy the best of this deal. In the coming days, many new start-ups that will benefit people by using digital technology in education and health sector will come in the market. And this deal will benefit them.
In this era of coronavirus, when schools are starting to use technology for college education, in work like X-rays, when technology is being used to train doctors, more and more people are working at home from home. Are, and data and networks are being used in all of them. It is clear that not only India, but the whole world is also now growing towards ‘digital society’. This deal will prove to be an important step in preparing the land of this society.
Some economist believes that at this time it is difficult to say how many new employment opportunities will open. Right now both companies have prepared only one big layout.
According to them, it is clear that small and middle-class traders will get relief and convenience from this. Many people are upset due to Kovid-19 and Mali situation is bad. Those companies will benefit from this new initiative.
But they also add that people will need to be ready for digitization. This is a necessary change, for this, we will also need to change ourselves along with technology. It will take some time. But time is short, it has to be done quickly and done on a large scale. Otherwise, a lot of people will be left behind.
Utkarsh talks of looking at this entire investment in two ways. According to him, the grocery stores buy themselves and sell to others. If they save money in buying, then they will be able to earn more profit. In that sense, this investment will be helpful for them.
In the midst of all the good news in the telecom and retail sectors, experts believe that there is a need to be a little worried about this investment.
There is no concrete law on data protection in India nor on the issue of privacy. When both the companies are talking about bringing a big revolution in one area in India, then the question also arises that whatever information will be shared by the consumers with the company, when, where and how it will be used — in this Transparency should also be brought.
Originally published at https://www.mubahisa.in.