Jio Platforms Ltd., (JPL) a digital service provider, and SES, a global satellite-based content connectivity solutions provider, on Monday announced the formation of a joint venture — Jio Space Technology Ltd. — to deliver next generation scalable and affordable broadband services in India leveraging satellite technology. JPL and SES will own 51% and 49% equity stake in the joint venture respectively. “The joint venture will use multi-orbit space networks that is a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations capable of delivering multi-gigabit links and capacity to enterprises, mobile backhaul and retail customers across the length and breadth of India and neighbouring regions,” both the entities said in a joint statement. The joint venture will be the vehicle for providing SES’s satellite data and connectivity services in India, except for certain international aeronautical and maritime customers who may be served by SES. It will have availability of up to 100 Gbps capacity from SES and will leverage Jio’s premiere position and sales reach in India to unlock this market opportunity.
Gateway infrastructure
As part of investment plan, the joint venture will develop extensive gateway infrastructure in India to provide services within the country. Jio, as an anchor customer of the joint venture, has entered into a multi-year capacity purchase agreement, based on certain milestones along with gateways and equipment purchase with total contract value of $100 million. The joint venture will leverage SES-12, SES’s high-throughput GEO satellite serving India, and O3b mPOWER, SES’s next-generation MEO constellation, to extend and complement Jio’s terrestrial network, increasing access to digital services and applications, the statement added. Jio will offer managed services and gateway infrastructure operations services to the joint venture. “As Covid-19 has demonstrated, access to broadband is imperative for full participation in the new digital economy. This joint venture will be a catalyst for connecting the unconnected areas within India and the region to the full range of digital services, offering access to remote health, government services, and distance learning opportunities,” the entities said. Akash Ambani, Director, Jio said, “While we continue to expand our fibre-based connectivity and FTTH business and invest in 5G, this new joint venture with SES will further accelerate the growth of multigigabit broadband. With additional coverage and capacity offered by satellite communications services, Jio will be able to connect the remotest towns and villages, enterprises, government establishments, and consumers to the new Digital India.” Steve Collar, CEO of SES, said, “This joint venture with JPL is a great example of how SES can complement even the most extensive terrestrial networks to deliver high-quality connectivity, and positively affect the lives of hundreds of millions of people.”
