Jio, a digital services provider of India recently announced that they have joined hands with a Luxembourg-based company named SES. The association took place to provide satellite-based broadband services in the Indian Market- both the company stated in a joint statement.
Both the companies have aligned and formed a joint venture named ‘Jio Space Technology Limited’, where Jio Platforms (JPL) will own 51 per cent of the equity stake, whereas SES will own 49 per cent of the equity stake.
The joint statement released by both the companies stated: "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 100Gbps capacity from SES and will leverage Jio's premiere position and sales reach in India to unlock this market opportunity."
The joint venture will use a combination of geostationary (GEO), multi-orbit space networks, and medium earth orbit (MEO) satellite constellations, which is capable to deliver multi-gigabit links. Also, it will have the capacity to enterprises, retail customers and mobile backhaul portions across the length and breadth of the Indian geographies and in the neighbouring areas.
As per the statement, both the companies further stated that: "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 a total contract value of circa $100 million (roughly Rs. 750 crores).”
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."
