Jio Platforms to form a JV with SES for providing satellite-based broadband services across India
With the availability of up to 100 Gbps capacity from SES, the JV will leverage Jio’s leading position and sales network in India to tap into this business opportunity.
Reliance Industries Ltd (RIL) announced this morning that its wholly-owned subsidiary Jio Platforms Limited (JPL) shall form a joint venture (JV) with SES, for providing the next generation scalable and affordable broadband services in India.
Jio Platforms Limited (JPL), as an anchor customer of the joint venture, has signed a multi-year capacity purchase agreement. This agreement is based on certain milestones along with gateways and equipment purchases and has a total contract value of circa USD 100 million.
About the JV
The newly formed JV, which intends to leverage satellite technology, shall be named Jio Space Technology Limited. It shall utilize multi-orbit space networks, that is a combination of geostationary (GEO) and medium earth orbit (MEO) satellite constellations. These networks can deliver multi-gigabit links and capacity to enterprises, mobile backhaul and retail customers across the country and neighbouring regions.
In this JV, SES will bring in its expertise in high-throughput GEO satellite along with O3b mPOWER, it's next-gen MEO constellation to extend and complement Jio’s terrestrial network and enhance access to digital services and applications.
Moreover, Jio will provide managed services and gateway infrastructure operations services to the newly formed joint venture.
The ownership structure
Jio Platforms Limited (JPL), which is the country’s leading digital service provider, shall own a 51% equity stake in this JV. On the other hand, SES, which is a leading global satellite-based content connectivity solutions provider, shall own the rest 49% equity stake.
JPL is optimistic that this JV shall connect the unconnected areas within the country and the region to the full range of digital services, providing access to remote health, government services, and distance learning opportunities.
At noon, the share price of Reliance Industries Ltd (RIL) was trading at Rs 2,340.85, a decline of 1.51% from the previous week’s closing price of Rs 2,376.85 on BSE.
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