Team News Riveting
Luxembourg / Mumbai, February 14
Jio Platforms Limited (“JPL”), India’s leading digital service provider, and SES, a leading global satellite-based content connectivity solutions provider, today announced the formation of a joint venture – Jio Space Technology Limited – to deliver the next generation scalable and affordable broadband services in India leveraging satellite technology.
JPL and SES will own 51 per cent and 49 per cent equity stake in the joint venture respectively.
The joint 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 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.
Akash Ambani, Director of Jio, 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.”
Steve Collar, CEO of SES, said, “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 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.
