Jio Platforms Limited (“JPL”), India’s digital service provider, and SES, a global satellite-based content connectivity solutions provider, today announced the formation of Jio Space Technology Limited.
Jio Platforms and SES Partnership
The joint venture aims to deliver the 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.
In addition, the 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.
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. 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 circa US $100 million.
The joint venture of Jio Platforms and SES 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. 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. The company says that 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 joint venture also aligns with the Hon’ble Prime Minister’s ‘Gati Shakti: National Master Plan for Multi-modal Connectivity’ initiative to provide integrated and seamless connectivity by implementing diverse infrastructure. It will also accelerate the achievement of the Connect India goals in the 2018 National Digital Communications Policy and the Digital India programme by expanding broadband connectivity to Indian citizens across Indian geography.