In order to offer private network solutions in a number of its business verticals, including ports and airports, Gautam Adani-led Adani Data Networks has announced that it would take part in the next 5G spectrum auction. It has said explicitly that it has no intention of operating in the “consumer mobility area.”
Analysts and business insiders see Adani’s entry into the nation’s telecom market as a possible upheaval that might have an impact on the industry.
The Adani Group stated that the Department of Telecommunications (DoT) had issued a letter of intent to it for the grant of a unified licence for the Gujarat circle in a disclosure that was required to be made to the DoT prior to the auction.
Technically, according to industry insiders, the licence will enable the business to commercially offer long distance calls and Internet services. They said that the spectrum auction, which is set to begin on July 26, would witness competitive bids for particular frequency bands given the arrival of Adani Data Networks and the efforts of the incumbent firms to solidify their position in the market.
The Adani Group, on the other hand, has said that it has no plans to enter the consumer mobility sector and is instead taking part in the auction to build its own personal 5G network that it would use to spread across its several business verticals. Despite Adani’s declaration that it would avoid the consumer market, according to a Goldman Sachs report, “we believe if the Adani Group does end up purchasing spectrum in the upcoming auction, it could potentially increase competition in enterprise 5G in addition to opening the doors for the Adani Group to expand into consumer mobile services over time.”
According to brokerage firm CLSA, the group’s arrival might lead to uncertainties around spectrum pricing. “Why would Adanis choose to participate in an auction as opposed to waiting for a straight spectrum assignment? According to a report, Adani’s participation may raise questions about spectrum price in the 5G auctions, which were supposed to be dominated by rivalry between Bharti Airtel and RJio (Reliance Jio).
As India prepares to bring out future generation 5G services through this auction, we are one of the numerous applicants engaging in the open bidding process, the Adani Group had stated last week when confirming its participation in the 5G auctions. In order to improve cyber security in the airport, ports & logistics, electricity production, transmission, and distribution, as well as numerous manufacturing processes, we are taking part in the 5G spectrum auction. We don’t want to compete in the consumer mobility market.
According to the conglomerate, as it develops its own digital platform with super applications, data centres, and industrial command and control centres, it will require ultra high quality data streaming capabilities through a high frequency and low latency 5G network across all of its companies.
According to a statement by the DoT, Bharti Airtel, Reliance Jio, and Vodafone Idea (Vi), three other telecom businesses in addition to the Adani Group subsidiary, have submitted applications to take part in the spectrum auctions.
The Adani subsidiary’s reports to the DoT indicate that it has a net value of Rs 248.35 crore. Reliance Jio had a net value of Rs 1,97,790 crore and a paid up capital of Rs 1,54,125 crore as of March 31. Bharti Airtel had a net worth of Rs 75, 887 crore and a paid up capital of Rs 2,795 crore.
Loss-making With a paid-up capital of Rs 32,119 crore, Vodafone Idea has a negative net value of Rs 80,918 crore.
