Reliance Industries Ltd announced today that it’s forming a Joint Venture with the global satellite-based connectivity solutions provider SES. This is RILs latest addition to its several verticals in business.
In January this year Jio’s contender Airtel had entered into a JV with Hughes Communications India to give satellite broadband services in India, to provide expandable enterprise networking solutions using satellite connectivity primarily for transport, back-up and hybrid implementation.
The Joint Venture firm, Jio Space Technology Limited’s 51% will be owned by Jio PLatforms and SES will hold the remaining 49%.
RIL announced that “The JV will use a combination of geostationary and medium earth orbit satellite constellations able of distributing several gigabit links and volume to enterprises, mobile backhaul and retail users panning India and its neighbouring areas.”
“It will have availability of up to 100 Gbps capacity from SES and will enhance Jio’s premiere spot and sales reach in our country to unlock the market opportunity. As part of the investment plan, the JV will develop an extensive gateway infrastructure in India to provide services within the country. Jio, as an anchor customer of the JV, has entered into a multi-year capacity purchase agreement, based on certain milestones along with gateways and equipment purchase with total contract value amounting to $100 million,” the officials added.
The JV will pave the way for providing SES’s connectivity services and satellite data in India. However, SES will hold the exclusive rights to provide services to international maritime and aeronautical users.
This JV will also uplift SES-12, SES’s high-output geostationary satellite helping India, O3b mPower, SES’s next-gen medium earth orbit constellation, to reach and supplement Jio’s terrestrial network, giving access to applications and digital services Jio will provide proper managed services and infrastructure operation services to the JV.