July 12, 2020
The enterprise value of the investment is estimated to be at US$69 billion and the equity value at US$65 billion.
The investment will enhance the setting up of 5G infrastructure across the nation as well as the initiation of 5G service
The telecom sector permits 100% FDI with 49% through the automatic route and the rest via the FIPB approval route
With the National Policy on Electronics 2019, India is poised to become a center for Electronics System Design and Manufacturing
Qualcomm Inc, a leading entity in the space of wireless technology on July 12 announced an investment of US$97.9 million in Reliance Industries Ltd’s telecommunications division, Jio platforms. Under the agreement, Qualcomm will share its expertise in technologies like AI, IoT, and 5G to further development across the nation. The investment will see the installation of 5G capacities and rendering of nationwide services to customers. With the purchase of a 0.15% stake in Reliance’s Jio platform, Qualcomm joins the league of international entities like Intel and Facebook that have invested in the conglomerate.
On the occasion, Mukesh Ambani, Chairman and Managing Director of Reliance Industries remarked about both entities’ shared vision in creating well-integrated wireless and digital network at the heart of improving digital accessibility and connectivity throughout the nation. 5G technology and its proliferation will give citizens access to faster internet speeds, increased quality in existing technologies, and the development of digitally empowered ecosystems.
The telecom sector in India is anchored in policies such as spectrum sharing that enable private and public sector entities to participate. The sector has been structured to permit 100 per cent FDI with 49 per cent through the automatic route and the rest through the FIPB approval route. With the National Policy on Electronics 2019, India is poised to become a centre for Electronics System Design and Manufacturing. The sector is predicted to contribute a revenue figure of US$26.38 billion by 2020.
Governmental efforts are also being made to improve nationwide telecom connectivity. A significant telecom spend lies in increasing connectivity among the North-Eastern states of India. Connectivity within provinces in Lakshadweep and the setting up of submarine cable connectivity to the Andaman and Nicobar islands are other initiatives undertaken. The Government of India is also taking on measures to improve internet connectivity within rural areas thereby improving accessibility and empowering rural economies.