Reliance Jio has just announced that it is forming a joint venture with SES, a global satellite-based content connectivity solutions provider. The new joint venture (JV) will be called Jio Space Technology Limited (JSTL). With this new venture, Jio and SES will look to provide next-generation affordable and scalable satellite broadband services in India. Jio Platforms Limited (JPL) will hold the majority and controlling equity stake of 51%, while SES will hold 49% of the new joint venture.
This new joint venture will leverage the geostationary (GEO) and medium earth orbit (MEO) satellite constellations capable of delivering multi-gigabit links and capacity to the enterprises, retail customers, and mobile backhaul across India and its neighbouring regions.
Jio Has Entered Multi-Year Capacity Purchase Agreement
With this joint venture, Reliance Jio will be providing SES’s satellite data and connectivity services in the country. There will be select maritime and aeronautical international customers who may be served by SES. The JV will benefit from the deep sales reach and the brand position of Jio in India, and SES can provide up to 100 Gbps capacity from its end.
JSTL will be developing and setting up an extensive gateway infrastructure in India for providing satellite-based broadband services. Jio has entered a multi-year capacity purchase agreement with this JV, which will depend on certain milestones. There will also be equipment and gateway purchases from Jio, which will approximately be around US $100 million.
This JV from Jio will compete with the one that Bharti Airtel and Hughes have formed. Earlier this year, Airtel and Hughes announced that they are partnering to bring a new JV to satellite broadband services JV in India — HCIPL.
Akash Ambani, Director, Jio, said that satellite communications services would help Jio in providing connectivity in the remotest towns, enterprises, and villages in the country.
This will be a boost to Jio’s fibre connectivity services.