Shares of telecom operators Bharti Airtel and Vodafone Idea fell 4-7 percent as Reliance Industries' Jio Platforms announced partnership with Google, said it is ready with its 5G technology.
Bharti Airtel closed 4.24 percent lower at Rs 564.15 and Vodafone Idea was down 7.39 percent at Rs 8.65.
Google has decided to invest Rs 33,737 crore for 7.7 percent stake in in Jio Platforms, which RIL said would build on Jio's and Google's existing efforts to expand the benefits of digitization across the length and breadth of India, beyond the current 500+ million Internet users in the country.
"Jio Platforms and Google have also entered into a commercial agreement to jointly develop an entry level affordable smartphone with optimizations to the Android operating system and the Play Store," RIL said.
Few months back, there was a buzz of Google investing in Vodafone Idea, which is now off following Jio-Google deal.
Another reason for correction in telecom stocks could be that Reliance is ready to launch Made in India 5G solutions for trial once spectrum is auctioned.
Also read - RIL AGM key highlights: Mukesh Ambani announces Google deal; Jio readies 5G solution
"Jio has designed and developed a complete 5G solution from scratch. This will enable us to launch a world-class 5G service in India, using 100 percent home grown technologies and solutions. This Made-in-India 5G solution will be ready for trials as soon as 5G spectrum is available and can be ready for field deployment next year," Mukesh Ambani, Chairman of Reliance Industries said while addressing 43rd AGM.
"And because of Jio's converged, all-IP network architecture, we can easily upgrade our 4G network to 5G. Once Jio's 5G solution is proven at India-scale, Jio Platforms would be well positioned to be an exporter of 5G solutions to other telecom operators globally, as a complete managed service," he added.
Mukesh Ambani said, "In the next three years, I can see a strong path for Jio to connect over a half a billion mobile customers, over a billion smart sensors; and over 50 million homes and business establishments.Also read
- RIL 43rd AGM: Reliance Jio and Google partner to build an affordable Android-based 5G smartphone for India
- RIL 43rd AGM: Google will invest Rs 33,737 crore for 7.7% in Jio Platforms
- RIL AGM: Nearly half of Google's India Digitisation Fund to go into Jio
- RIL 43rd AGM: Jio develops made-In-India 5G solution
- RIL AGM key highlights: Mukesh Ambani announces Google deal; Jio readies 5G solution
- RIL AGM: Capital raise complete, now only look to add strategic partners, says Chairman Mukesh Ambani
- RIL AGM 2020: In its latest offerings, Reliance announces JioTV+ and Jio Glass
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- RIL AGM: No better partner for Indian startups than Jio, says Chairman Mukesh Ambani
- RIL AGM: Isha Ambani says JioMeet, Embibe helping students get access to quality education online
- RIL AGM: Isha Ambani says JioMeet, JioHealthHub to provide end-to-end digital health servicesDisclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which published moneycontrol.com.