Digital services company Jio Platforms on Monday announced a joint venture with Luxembourg-based SES to provide satellite broadband services in India, a joint statement said.
The two companies have formed a joint venture, Jio Space Technology Limited, in which Jio Platforms (JPL) and SES will have 51% and 49% equity interests, respectively.
“The joint venture will be the vehicle to provide SES satellite data and connectivity services in India, except for certain international aeronautical and maritime customers that may be served by SES.
“It will have availability of up to 100 Gbps of capacity from SES and leverage Jio’s debut position and sales reach in India to unlock this market opportunity,” the statement said.
The joint venture will use multi-orbit space networks, a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations, capable of delivering multi-gigabit links and capacity to enterprise, mobile backhaul and retail customers across the extent and breadth of India and neighboring regions.
“Jio, as the joint venture’s anchor customer, has entered into a multi-year capacity purchase agreement based on certain milestones along with gateways and equipment purchase with total contract value of around US$100 million (approximately Rs. 750 crore)” according to the statement.
Jio managing director Akash Ambani said, “As we continue to expand our fiber-based connectivity and FTTH business and invest in 5G, this new joint venture with SES will further accelerate the growth of multigigabit broadband.” He further added that “with additional coverage and capacity offered by satellite communication services, Jio will be able to connect the most remote cities and villages, businesses, government establishments and consumers to the new Digital India”.