Reliance Jio has formed a joint venture with SES, a Luxembourg-based satellite systems provider, called Jio Space Technology Limited. The joint company aims to leverage satellite technology to create next-generation scalable and inexpensive internet services in India.Â
Jio and SES will each own 51 percent and 49 percent of the equity interest, respectively. Multi-orbit space networks, a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations, will be used by the joint venture to supply multi-gigabit connectivity and capacity to companies, mobile backhaul, and retail customers across India and neighboring countries.Â
Except for select international aeronautical and maritime customers who may be handled directly by the SES, the joint venture will drive satellite-based data and communication services throughout India.Â
“With the exception of select international aviation and maritime customers who may be supplied by SES, the joint venture will be the vehicle for providing SES satellite data and communication services in India.”Â
“It will utilize Jio’s top position and sales reach in India to unlock this market opportunity,” according to the release. “It will have access of up to 100Gbps capacity from SES.”Â
According to the announcement, “Jio, as the joint venture’s anchor client, has signed into a multi-year capacity purchase agreement based on specified milestones, as well as gateways and equipment procurement, with a total contract value of circa $100 million (about Rs. 750 crore).”Â
“While we continue to build our fiber-based connection and FTTH business and invest in 5G,” said Jio Director Akash Ambani, “this new joint venture with SES will further accelerate the expansion of multigigabit broadband.” “Jio will be able to connect the remotest towns and villages, enterprises, government buildings, and consumers to the new Digital India,” he continued.Â
Although Jio’s new satellite-based broadband service has yet to be named, it poses a challenge to Elon Musk’s Starlink, which is failing to reach India’s internet consumers. Last year, Musk’s Starlink began taking pre-orders in India, but the business had to halt its market debut due to government action regarding licensing its internet services. Following the government’s decision, Starlink was forced to return pre-order money to interested users, who were equally dissatisfied.Â
Although Starlink has yet to officially debut in India, it has provided the required motivation for India’s own internet service providers to pursue the satellite-based broadband technology field in the competition to be the first to do so. Airtel previously launched a joint venture with Hughes Communications India to provide satellite internet services in India. And Jio’s is the most recent entrant into this field.Â
The joint venture will use SES-12, SES’s high-throughput GEO satellite servicing 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, according to the release. The joint venture would receive managed services and gateway infrastructure operations from Jio.Â
“This cooperative venture with JPL is an excellent illustration of how SES can enhance even the most extensive terrestrial networks to provide high-quality connectivity and benefit hundreds of millions of people.” SES CEO Steve Collar remarked, “We look forward to this cooperative venture where we can play a role in increasing digital accessibility in India.”Â
Published by- Aashay Bhujbal
edited by- Kritika Kashyap
