AMBANI vs CHINESE TECH GIANTS

Mukesh ambani


        After the covid-19 epidemic, most countries lost hope in China. Finally, countries such as India, the United States, and the United Kingdom have taken moves to boycott Chinese firms and their products. Hundreds of Chinese apps have just been banned in India. Apps like TIKTOK and UC browser were also blocked. Few companies took advantage of the opportunity to enter the Indian market. As an example, as a successor for TIKTOK, Instagram added a feature called REELS.

            Huawei and ZTE have been a favourite vendor for telecom firms all around the world in recent years, owing to their nearly 25% lower prices.  Indian companies like Vodafone Idea and Airtel have been concerned about the clouds gathering over Huawei's engagement as the company’s presence in their networks is 40 percent and 30 percent respectively.

        However, due to shifting geopolitics and security concerns, the telecom industry may have shifted away from "untrusted" vendors and toward "trusted" ones. That is exactly what happened when Huawei was banned in the United States.


Ambani is prepared to enter the technological conflict between America and China with the $28 billion he raised. The two technical behemoths that provided him the third of the money can help him join the war.

Xiaomi and huawei logo

        Politicians in countries like India, United Kingdom and US have already started feeling insecure of Huawei playing the key role in 5G technology that run everything from power stations to autonomous cars.

Ambani's four-year-old Jio Platforms has developed its own 5G technology, the tycoon announced at his flagship Reliance Industries Ltd's annual general meeting on Wednesday. Once he's finished testing it on India's 400 million 4G users, he'll sell it to other markets. The technology was dubbed a "Huawei-killer" by the news18.com website, which is jointly owned by Ambani, and it was underlined that U.S. Secretary of State Pompeo had complimented Jio as a clean network for not mistreating the Chinese firm's equipment.

The 300,000 Reliance investors WHO watched the AGM on JioMeet, Ambani’s cloudconferencing identical to Zoom Video Communications Inc., probably found the sharp pivot away from hydrocarbons a bit too much to take. Ambani dropped enough hints that last year’s plan to sell 20% of his mainstay oils-to-chemicals business to Saudi Aramco was now unlikely. Given the coronavirus situation, writing a $15 billion check would be a further strain on Aramco’s $75 billion-a-year dividend payout, as my colleague David Fickling has noted. Still, Reliance shares fell 3.8% after Ambani said the unit will be spun off and seek new investors. Reliance could get saddled with a permanent discount as a company of digital, retail and organic compound assets, however the empire might as simply command a premium as India’s unacknowledged national champion

                                                                                              -Source ECONOMIC TIMES

    While Ambani's ambition for the 5G industry is apparent, his plan of action against phone manufacturers is even evident. Sundar Pichai, the CEO of Alphabet Inc., made a virtual presence at the Reliance AGM, pledging $4.4 billion in exchange for a 7% stake in Jio and a chance to construct an Android operating system. The low-cost cellphones that operate it will bring 350 million Indians who still use feature phones online.


But how much customization will Google be comfortable with? 

If it's a lot, the phone might be cheap, but it'll be tethered to Jio's apps, which Indians are already used to. If there isn't enough, the pricing may be unappealing. It's a threat to Xiaomi Corp. somewhere in the middle of those two extremes. According to Bloomberg Intelligence analyst Anthea Lai, India accounted for 35% of Huawei's smartphone shipments last year. So, Amabani's ambition to take out two major giants, Huawei and Xiaomi, is a major risk, and the answer to the question "Could he do this?" is yet unknown. "Could the Mastermind pull it off?"

we should wait and watch.


 


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