Jio Platforms Limited (JPL), an Indian digital service provider, and SES, a global provider of satellite content connectivity solutions, have announced the formation of a joint venture – Jio Space Technology Limited – to provide scalable broadband services and affordable next generation in India by leveraging satellite technology. JPL and SES will hold 51% and 49% of the capital of the joint venture respectively. The joint venture will use multi-orbit space networks which are a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations capable of providing multi-gigabit links and capacity to enterprises, mobile backhaul customers and retail throughout the length and breadth of India and adjoining regions.
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 which may be served by SES. It will have up to 100Gbps capacity from SES and will leverage Jio’s prominent position and sales reach in India to unlock this market opportunity. As part of the investment plan, the joint venture will develop extensive gateway infrastructure in India to provide services in the country. Jio, as the main customer of the joint venture, has entered into a multi-year capacity purchase agreement, based on certain milestones as well as the purchase of gateways and equipment with a total contract value of approximately 100 million of dollars.
The joint venture will rely on SES-12SES’ high-throughput GEO satellite serving India, and O3b mPOWER, SES’ next-generation MEO constellation, to extend and complement Jio’s terrestrial network, increasing access to digital services and applications. Jio will provide managed services and gateway infrastructure operation services to the joint venture.
As Covid-19 has demonstrated, broadband access is imperative to fully participate in the new digital economy. This joint venture will be a catalyst to connect unconnected areas of India and the region to the full range of digital services, providing access to remote health, government services and remote learning opportunities.
Akash Ambani, Director of Jio, said: “As we continue to grow our fiber and FTTH-based connectivity business and invest in 5G, this new joint venture with SES will further accelerate the growth of multi-gigabit broadband. With additional coverage and capacity offered by satellite communication services, Jio will be able to connect the most remote towns and villages, businesses government establishments and consumers to the new digital India. We are excited about this new venture combining our massive reach and customer base with SES’s innovative leadership and expertise in the satellite industry.
Steve Collar, CEO of SES, said: “This joint venture with JPL is a great example of how SES can complement the most extensive terrestrial networks to deliver high quality connectivity and positively impact people’s lives. hundreds of millions of people. We look forward to this joint venture through which we can play a role in promoting digital inclusion in India.
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