Adani’s Entry In 5G Auction Not For Consumer Mobility
Adani Data Networks, headed by Gautam Adani, has announced that it will be participating in the 5G spectrum auction. This will allow Adani Data Networks to offer private network solutions at several of its business verticals like ports and airports. It clarified that it doesn't intend to be in "consumer mobility". Analysts and industry insiders see Adani's entry in the telecom space of the country as a disruption that could have unpleasant repercussions.
The Adani Group disclosed that it received a letter of intent from the Department of Telecommunications (DoT) for the granting of a unified license to operate the Gujarat circle in a mandatory disclosure to DoT, ahead of the auction. According to industry experts, technically the license will allow Adani Data Networks to offer long distance calls and Internet services. The industry executives also stated that Adani Data Networks' entry and the existing players seeking to consolidate their position in the market, will allow the company to offer long-distance calls and Internet services commercially. However, they warned that the spectrum auction which begins on July 26 may be subject to aggressive bidding for certain frequency bands.
The Adani Group stated that it does not intend to enter the consumer mobility market for mobile devices and is participating in an auction to build its private 5G network. According to a Goldman Sachs report, Adani had not stated that it would not enter into the consumer market. However, the Adani Group believes that if it does buy spectrum in the auction, it will increase competition in enterprise 5G and open the door for the Adani Group's expansion into consumer mobile services.
CLSA, a brokerage group, stated that the group's entry could cause uncertainty in spectrum pricing. Adani's entry will cause uncertainty about spectrum pricing in 5G auctions. It was expected that there would be bidding competition primarily between RJio (Reliance Jio) and Bharti Airtel," it stated in a report.
The Adani Group confirmed its participation in 5G spectrum auctions last week. It said that it was one of many applicants who participated in the open bidding process as India prepares for next-generation 5G services. We will be participating in 5G spectrum auction in order to provide private network solutions and enhanced cyber security in airports, ports & logistics, power generator, distribution, and other manufacturing operations.
The government announced last month that it would be holding a spectrum auction to enable 5G services to be launched across the country. It also proposed to allow tech companies and other businesses to purchase spectrum directly from the government to test and develop industry 4.0 applications such as machine-to-machine communications (M2M) and artificial intelligence (AI). Because these networks are created to serve a specific organisation and not the general public, they are known as private captive networks.
In a set of rules published last month by the DoT, the DoT stated that private 5G network operators could get spectrum directly from the government. They would need to obtain a 10-year renewable license for which there would be no license fee. The DoT stated that it will conduct demand studies and seek recommendations from Telecom Regulatory Authority of India (Trai) for direct spectrum assignment to such entities.