Reliance Jio Announces Joint Venture With SES For Satellite-Based Internet

Richest Indian Mukesh Ambani's conglomerate on Monday announced a joint venture to provide satellite-based broadband services across India, as it joins the race with billionaires Elon Musk's SpaceX and Sunil Mittal's OneWeb to offer reliable, high-speed internet everywhere.

Jio Platforms -- the telecom and digital services arm of oil-to-retail conglomerate Reliance Industries Ltd -- will forge a venture with Luxembourg-based SES SA that "will use multi-orbit space networks, a combination of geostationary and medium earth orbit satellite constellations capable of delivering multi-gigabit links and capacity to enterprises, mobile backhaul and retail customers," the firm said in a statement.

The 51:49 joint venture (Jio holding a majority 51 per cent) will have up to 100 Gbps capacity from SES -- a satellite-based content connectivity service provider -- and will leverage Jio's reach in India, it said.

SES has over 70 satellites in two different orbits, providing video and data services to customers across the world.

The Jio-SES joint venture will use multi-orbit space networks that are 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.

"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," the statement said.

SpaceX's Starlink has deployed close to 2,000 low orbit satellites to provide high-speed internet. OneWeb, a joint venture between the UK government and Mittal's Bharti Group, provides broadband services via a constellation of 650 low earth orbit satellites.

Also, Bharti Airtel Ltd in May 2019 announced a partnership with Hughes Communications to provide satellite broadband services in India.

Jio said its 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," the statement said. "As part of the investment plan, the joint venture will develop extensive gateway infrastructure in India to provide services within the country."

 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 operation 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," the statement said.

Akash Ambani, Director of Jio and eldest son of Mukesh Ambani, said while his firm continues to expand fibre-based connectivity and FTTH business and invests in 5G, this new joint venture with SES will further accelerate the growth of multi-gigabit 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," he said.

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 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 the Indian geography, the statement added.