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Adani Group Now has 5G Spectrum, But Where will It Start

Riya Shukla

Nov 29,2022
3 min read
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The subsidiary company, Adani Data Networks, will only be focusing on offering 5G B2B services. This means that the Adani Group will be solely focused on the enterprise side of the business with 5G.

Adani’s entry into business communications, particularly for ports and airports, could endanger enterprise revenue streams for India’s telecom giants, who had been looking at 5G usage in the business use category as a key source of revenue. Industry estimates place the enterprise portion of 5G revenue at 40% of the overall 5G revenue.

The subsidiary company of Adani Enterprises doesn't want to start by offering services to retail consumers, and it also makes sense as the Adani Group doesn't have the necessary infra to offer mobile services all around the country.

The deadline for submitting applications was Friday, July 8, by the Notice Inviting Applications (NIA), which defines the auction regulations. The pre-qualification of bidders and mock auctions are scheduled for July 18 and 22, respectively, among other important days. There will be three extremely wealthy and powerful bidders, and if Adani participates, there may be competitive bidding for the 5G spectrum in the C-band (3.3-3.67 GHz).

The Adani Group remained unanswered about their participation. However, those familiar with the situation confirmed its participation. According to reports cited by news organisation PTI, an Adani firm submitted a bid.

What Kind of Services Will the Adani Group offer to Consumers?

This was confirmed by the Adani Group itself. The subsidiary company, Adani Data Networks, will only be focusing on offering 5G B2B services. This means that the Adani Group will be solely focused on the enterprise side of the business with 5G. The subsidiary company of Adani Enterprises doesn't want to start by offering services to retail consumers, and it also makes sense as the Adani Group doesn't have the necessary infra to offer mobile services all around the country.

For a minimal Rs 2,800 crore over 20 years, the group will be required to purchase a millimeter band spectrum that will be used to power its 5G private networks. To reduce its overall annual payouts, it can potentially pay this amount in 20 equal installments.

“All three are probably going after these airwaves, especially in metro areas, tier-1 cities, and category A circles where 5G adoption rates would be higher, an analyst at a top international investment bank told ET.

The debate over the direct spectrum award sparked by Adani 5G bid

According to industry observers, Adani Group’s decision to take part in 5G frequency auctions to launch its captive networks will not interfere with other businesses’ efforts to acquire airwaves through non-auction means.

The president of the Broadband India Forum, which advocates for private networks for businesses and supports tech companies, T.V. Ramachandran, argued that even if the group were to pay an auction-determined price for airwaves for captive use, it shouldn’t apply to other businesses because they are unable to make money from their private networks while consumer networks using 5G technology can expect higher revenues.

Conclusion

Adani’s potential entry, according to top industry executives and analysts, could increase competition in the upcoming 5G airwaves sale, which was previously anticipated to see muted bidding due to the abundance of spectrum up for grabs and the presence of just two major bidders, Jio and Bharti Airtel, with cash-strapped Vi likely to be a fringe participant.