Adani Group exits captive telecom space, to sell 400 MHz spectrum to Bharti Airtel

Gautam Adani-led Adani Group has dropped its plan to enter the captive telecom business. This comes over two years after it bid in the 5G spectrum auction to provide private network solutions.

Adani Data Networks Ltd (ADNL), a wholly-owned subsidiary of Adani Enterprises Ltd , has signed definitive agreements with Bharti Airtel Ltd and its subsidiary Bharti Hexacom Ltd to transfer the rights to use 400 MHz of spectrum in the 26 GHz band.

The spectrum covers six telecom circles — Gujarat (100 MHz), Mumbai (100 MHz), Andhra Pradesh (50 MHz), Rajasthan (50 MHz), Karnataka (50 MHz) and Tamil Nadu (50 MHz). The closing of the transaction is subject to customary statutory approvals.

Adani Data Networks, which encountered difficulties in deploying private networks due to a lack of practical use cases, was at risk of facing penalties.

In 2022, Adani Group participated in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations.

Adani Group had said that its intention is not to be in the consumer mobility space. “As India prepares to roll out next generation 5G services through this auction, we are one of the many applicants participating in the open bidding process,” it had said.

“As we build our own digital platform encompassing super apps, edge data centres, and industry command and control centres, we will need ultra high quality data streaming capabilities through a high frequency and low latency 5G network across all our businesses,” the Gautam Adani-led conglomerate had said.

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. If large businesses build their own private networks, it could significantly impact this revenue stream. Additionally, private networks may spark fresh debates over what should be classified under adjusted gross revenues (AGR) in the future.

Responding to concerns about 5G private captive networks, the Cellular Operators Association of India (COAI) had argued that assigning spectrum directly to industry sectors for running such networks is unwarranted, given that licensed service providers are fully equipped to deliver tailored solutions.