Collar says JV can positively affect the lives of hundreds of millions of people
SES, a leading global satellite-based content connectivity solutions provider listed on Paris and Luxembourg stock exchanges (Ticker: SESG), has formed a joint venture with Jio Platforms Ltd (JPL) 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 Jio Space Technology Limited, which 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 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. 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.
Jio Director Akash Ambani said, “While we continue to expand our fibre-based connectivity and FTTH business and invest in 5G, this new joint venture with SES will further accelerate the growth of multigigabit broadband.
“With additional coverage and capacity offered by satellite communications services, Jio will be able to connect the remotest towns and villages, enterprises, government establishments, and consumers to the new Digital India. We are excited about this new journey combining our massive reach and customer base with SES’s innovative leadership and expertise in the satellite industry.”
SES CEO Steve Collar elaborated, “This joint venture with JPL is a great example of how SES can complement even the most extensive terrestrial networks to deliver high-quality connectivity, and positively affect the lives of hundreds of millions of people. We look forward to this joint venture whereby we can play a role in promoting digital inclusion in India.”
The joint venture also aligns with the ‘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.
Jio, a subsidiary of Reliance Industries Limited, has built a world-class all-IP data strong future proof network with latest 4G LTE technology (through its wholly-owned subsidiary, Reliance Jio Infocomm Limited).
SES has a bold vision to deliver amazing experiences everywhere on earth by distributing the highest quality video content and providing seamless connectivity around the world. As the leader in global content connectivity solutions, SES operates the world’s only multi-orbit constellation of satellites with the unique combination of global coverage and high performance, including the commercially-proven, low-latency Medium Earth Orbit O3b system. By leveraging a vast and intelligent, cloud-enabled network, SES is able to deliver high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to the world’s leading telecommunications companies, mobile network operators, governments, connectivity and cloud service providers, broadcasters, video platform operators and content owners. SES’s video network carries over 8,500 channels and has an unparalleled reach of 361 million households, delivering managed media services for both linear and non-linear content. fiinews.com
