INDIAN tycoon Mukesh Ambani is set to enter the satellite broadband services space as his tech company Jio Platforms has announced a tie-up with Luxembourg-based SES.
The two companies have formed a joint venture, Jio Space Technology Limited, in which Jio owns 51 per cent equity stake and SES the remaining 49 per cent.
"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,” the two companies said in a statement.
"It will have availability of up to 100 Gbps capacity from SES and will leverage Jio's premier position and sales reach in India to unlock this market opportunity.”
Jio is a subsidiary of the Ambani-promoted Reliance Industries, India’s most-valued listed company.
The joint venture will use multi-orbit space networks, a combination of geostationary and medium earth orbit satellite constellations.
"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 (£73.78m)," according to the statement.
Jio director Akash Ambani 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."
He added that "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."
Ambani’s firm follows British company OneWeb - promoted by another Indian billionaire Sunil Mittal - and American tycoon Elon Musk’ Starlink, which launched satellites to roll out broad services.
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