New Delhi: Earlier the news of Adani Group joining captive telecom business was trending, but later on we got hearing the news of Adani Group has dropped the plan to enter in captive telecom business, but the question raises now that why Adani Group has taken this step to undo the decision, strategic analysis haven’t yet commented on this whether the move taken is strategic move or just a setback. They have come over two years after they bid in the 5G spectrum auction to provide private network solutions.
Adani Data Network Ltd, a wholly-owned subsidiary of Adani Enterprises Ltd, has signed some definitive agreements with their first planned deal with their Bharti Airtel Ltd and its subsidiary Bharti Hexacom Ltd to transfer the rights to use 400 MHz of spectrum in the 26 GHz band in this deal that have decided when this deal was planned by Adani Groups before two years when their planning are started to entre in this captive telecom business.
Spectrum covers six telecom circles:
- Gujarat (100 MHz)
- Mumbai (100 MHz)
- Andhra Pradesh (50 MHz)
- Rajasthan (50 MHz)
- Karnataka (50 MHz)
- Tamil Nadu (50 MHz)
The closing of the transaction is subject to customary statutory approvals. Then Adani Data Networks, which has encountered difficulties in deploying private networks due to a lack of practical use cases, was at risk of facing penalties. In the year 2022, Adani Group participated in the 5G spectrum auction to provide private network solutions along with enhanced cybersecurity in the airport, ports, and logistics, power generation, transmission, distribution, and various manufacturing operations. They were entered into this deal only to provide private network solutions. Adani Group has said that their intention is not to be a consumer in the mobility space, but they want to prepare to roll out next-generation 5 G services through this auction. We are one of the many applicants participating in the open bidding process.
They wanted to build their digital platform encompassing super apps, edge data centres, and industry command and control centres. They will need ultra-high-frequency and low-latency 5G networks across all their businesses. This was said by Gautam Adani. The telecom operators have resisted the idea of private networks, as enterprise data is anticipated to be the primary driver of revenue in the 5G era, and the large businesses build their private networks, it could significantly impact the revenue stream that they have created. Additionally, private networks may spark fresh debates over what should be classified under adjusted gross revenues in the future.
