Here's how Jio-SES JV can give a push to gaming, ad-tech, and OTT sectors

Reliance Industries' digital arm Jio Platforms has announced a joint-venture with Luxembourg-based SES to deliver satellite broadband services across India. Industry experts feel that the JV will benefit industries like gaming, ad-tech, OTT, etc. The companies said that the joint venture will use multi-orbit space networks that is a combination of GEO (geostationary equatorial orbit) and MEO (medium earth orbit) 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.

“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 100 Gbps capacity from SES and will leverage Jio’s sales reach in India to unlock this market opportunity,” the companies said in a statement. “As part of the investment plan, the joint venture will develop extensive gateway infrastructure in India to provide services within the country,” they announced.

“This will help enable Internet penetration, which will have a positive impact on other forms of entertainment (Web 3.0) like gaming, e sports , Metaverse which require high speed internet, apart from just video content,” said Karan Taurani, senior vice president, Elara Capital.

Analysts feel that this will speed up the process of high speed Internet in the smaller towns/cities and also help ramp up broadband penetration in areas where there is little or no LCO (local cable operators) support due to local broadband companies.

“Satellite Internet cannot offer speed as per the FTTH (fiber to the home) at peak (10 GBPS), however it is much faster than mobile Internet, as the former offers 25-50 MBPS.  Jio continues to enjoy a big advantage over the LCO/MSO (multi-service operator) due to its capability to offer content on a bundled basis, which is most preferred by Indian audiences as they are value centric,” Taurani added.

India’s Internet consumption is almost 85% smartphone led, which has constraints in terms of speed. Taurani argues that broadband enhances speed which in turn propels the consumer to use more services.

“We will need to check on pricing of this satellite service as it is generally much expensive as compared to wired broadband due to the investment in infra; medium to long term outlook remains positive, as in TV industry too it was DTH that helped penetrate into new markets with good picture quality and content,” he said. 
 

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