Adani’s 5G bid opens door for telecom entry 

NEW DELHI:  By choosing the auction route for the 5G spectrum, the Adani Group has apparently signalled its future ambition to enter the telecom space,  even though it denied reports of such a move. While the Group could have directly acquired the spectrum, it chose the auction route, triggering speculation about its intentions. 

Four companies including Adani Enterprises’ arm Adani Data Networks have applied for participation in the upcoming 5G spectrum auctions, according to a list published by the Department of Telecommunication (DoT) on Tuesday. The entry of Adani Group in the spectrum race is going to make bids aggressive and many believe choosing the auction route is a signal of its future ambition of venturing into consumer mobility.  

“Applications have been received from the...applicants for participation in the 2022 auction for rights to use spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz Bands,” reads the document of the Department of Telecom (DoT).  

According to the 5G auction modalities, enterprises may request telecom service providers to establish an independent enterprise or may obtain the spectrum directly from the government and establish their own isolated Captive Wireless Private Network.  However, to get a direct 5G spectrum from the government, enterprises don’t need any entry fee or licence fee. Adani Group chose a more expensive auction route instead, which signals its future ambition.  

“Adani group will spend a huge amount of money for 5G spectrum in the auction that could have been otherwise available at a very minimal cost through administrative allocation.  Although the group has expressed no plans to enter the consumer mobility space, one can’t deny that there will always be a possibility,” said Charu Paliwal, Research Analyst, Counterpoint Research. 

DoT has issued a letter of intent on June 28, 2022, for grant of unified licence with authorisation of national and international for pan-India service, and internet service provider for the Gujarat circle.  The third-largest telco Vodafone Idea said in its declaration to the department that it had a negative net worth of Rs 80,918 crore as of March 31, 2022, with paid-up capital of Rs 32,119 crore.