Due to commercial unviability, the Adani Group has not yet deployed its captive networks two years after acquiring the 5G spectrum.
The Adani Group has been asked to submit an action plan for the rollout of 5G by the Department of Telecommunications (DoT).
Adani Group Hasn’t Deployed Captive Networks Two Years After Acquiring 5G Spectrum
According to reports, the Adani Group may think about giving up its spectrum because it is not commercially viable.
The DoT has previously questioned the Adani Group regarding its 5G rollout; there have been several exchanges regarding the subject. Operators must commercially launch services in both metro and non-metro areas in order to fulfill the DoT’s 5G license requirements.
Due to the Adani Group’s failure to fulfill these minimal rollout requirements, spectrum dues and penalties have been incurred. According to the rules, trading is allowed after two years, but spectrum can only be given up after ten.
Spectrum obligation non-compliance penalties start at ₹1 lakh per week for the first 13 weeks, go up to ₹2 lakh per week for the following 13 weeks, and ultimately result in a show-cause notice.
In August 2022, Adani Enterprises subsidiary Adani Data Networks paid ₹212 crore to purchase 400MHz of 5G spectrum in the 26GHz millimeter wave band. The purchase included 50MHz of spectrum in Andhra Pradesh, Rajasthan, Karnataka, and Tamil Nadu, as well as 100MHz in Gujarat and Mumbai.
Spectrum Licenses Were Not Meant For Consumer Mobility Services
These spectrum licenses were not meant for consumer mobility services like those offered by Reliance Jio and Airtel, but rather for private captive networks. Captive networks are made to connect a single entity in a constrained space, like a hospital or factory.
Adani Group said, “The newly acquired 5G spectrum is expected to help create a unified digital platform that will accelerate the pace and scale of the Adani Group’s digitization of its core infrastructure, primary industry, and B2C business portfolio.”
As per reports, the Adani Group does not currently have the financial means to deploy the spectrum.
According to reports, the Adani Group has discussed its difficulties with spectrum deployment with DoT officials. The Adani Group and other Indian companies are having a lot of trouble implementing private captive networks.
There are still very few examples of use cases for private networks, such as those offered by Reliance Jio and Airtel.
Simnovus, a US-based 5G software provider, notes that high net worth requirements for spectrum acquisition, expensive spectrum pricing, recurring costs, and complex regulatory frameworks are major hurdles for firms.
