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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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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.

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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.

WhatsApp is the only agent that can push MSMEs
Sanjay Kapur, Ex-CEO, Bharti Airtel

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.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

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