Luxembourg-based SES recently decided to delay the commercial services launch of its new O3b mPOWER satellite constellation due to technical issues. However, this delay will not affect the plans of its Indian joint venture partner, Reliance Jio, to launch broadband services from space. Reliable sources close to Reliance have stated that “The delayed commercial roll out of SES’s O3b mPOWER satellites will have no impact on the India launch schedules of Jio’s satellite-based gigabit fiber service, known as JioSpaceFiber. This is because Jio has access to SES’s O3b Classic medium-earth orbit (MEO) satellite constellation, which still has another five years of operational life.”
Last year, Reliance Jio, owned by Mukesh Ambani, and SES formed a joint venture with a 51:49 partnership ratio to provide high-speed broadband connectivity via satellites. This partnership ventured into a domain where other notable players such as Bharti Group-backed OneWeb, Elon Musk-owned Starlink, Amazon, and the Tata Group have also announced their entry. Bharti Airtel’s Chairman, Sunil Mittal, recently declared that OneWeb is prepared to launch nationwide by the end of November. In comparison, Jio’s President, Mathew Oommen, stated that the Jio-SES partnership can roll out JioSpaceFiber services within weeks of being allocated the necessary spectrum.
Nonetheless, during an investor call conducted last week, SES, Jio’s satellite communication (satcom) joint venture partner, revealed that it was delaying the start of commercial services for its 03b mPOWER satellite constellation to early in the second quarter of 2024. The constellation was initially expected to enter commercial service by the end of 2023. This delay raised concerns in some circles about the timeline for Jio’s satcom services launch. However, individuals familiar with the Jio-SES joint venture downplayed these concerns. They emphasized that this delay will not affect the launch of JioSpaceFiber services, especially as the timeline for satellite spectrum allocation in India is still unclear.
One of the individuals closely associated with the joint venture explained that “SES currently operates an existing MEO constellation called O3b. Jio will leverage this MEO constellation to start launching its services throughout India and will scale up the services when 03b mPOWER becomes operational in early Q2 2024.” It is also understood that SES plans to implement mitigations for the first six 03b mPOWER satellites.
However, for Jio and other satellite players to offer high-speed broadband connectivity through satellites in India, the Department of Telecommunications (DoT) must finalize the mode of satellite spectrum allocation. Unfortunately, due to the absence of a new chairman, the Telecom Regulatory Authority of India (Trai) has not yet made its recommendations regarding the method by which spectrum will be awarded for satellite-based broadband services.
The industry has witnessed sharp differences among its players regarding the mode of allocation of satellite spectrum. Amazon, OneWeb, Starlink, Telesat, Tata-backed Nelco, and Hughes advocate allotment via the administrative route, in line with global practice. On the other hand, Jio and Vodafone Idea contend that the airwaves must be auctioned to ensure a competitive landscape.
