China Mobile reportedly entered early stage talks with Vodafone Idea and Bharti Airtel on developing a cloud service joint venture for the Indian market.
Business news service Live Mint reported China Mobile was interested in creating a business focused on cloud networking services with either operator or potentially both.
Sources told the publication the China-based company would likely leave the day-to-day running of the new unit to its local partner, but hold enough voting stock for high-level intervention when required.
China Mobile already runs the enterprise-focused Cloud Connect service in its home market, offering a range of services, platforms and infrastructure such as data centres.
Currently Bharti Airtel and Vodafone Idea each supply enterprise cloud networking services in India. However, a venture part-funded by China Mobile would allow them to step-up their plays in the potentially high-growth segment at a time when both companies’ pot of available cash is under severe pressure.
Earlier this week, Bharti Airtel began a bid to raise $3 billion in funds as it attempts to source the cash to pay-off controversial fees being levied by the Indian Government.
In its latest financial statement, Vodafone Idea set aside INR257 billion ($3.6 billion) to cover its charges following the same Supreme Court ruling against the country’s operators.Subscribe to our daily newsletter Back