No, Adani Group Will Not Launch Telecom Services Like Airtel Or Jio! But Why They Spent Rs 200 Crore For 5G Spectrum?


Shreya Bose

Shreya Bose

Jan 23, 2023


Adani Group said it doesn’t intend to enter India’s telecom industry.

No, Adani Group Will Not Launch Telecom Services Like Airtel Or Jio! But Why They Spent Rs 200 Crore For 5G Spectrum?

Background

Adani, the world’s third-richest man according to Forbes, has been diversifying his empire from ports to energy to now owning a media company.

However the company has kept its distance from India’s telecom sector, where rival Reliance Industries’ Jio became the top player by offering low-cost services since its launch in 2016.

“We have no plans or ambitions in telecom,” Jugeshinder Singh, Adani Group’s chief financial officer.

Eyeing private space

The conglomerate’s separate unit Adani Data Networks purchased airwaves worth nearly $27 million in the 5G auction last year.

However, at the time it said it has no plans to offer consumer services and is instead aiming to enter the private 5G network space.

It is planning to offer 5G services for enterprises this year.

Chairman and founder Gautam Adani also announced his plans to invest in growing the network of data centres, developing AI-ML and industrial cloud capabilities, introducing B2C apps, and more in a New Year’s address to his employees.

5G auction bid

At last year’s 5G auction it placed its bid, but for Rs 212 crore it could only buy 400 MHz spectrum.

With this the company cannot offer consumer telephony since it hasn’t acquired spectrum in all 5G bands.

Hence its foray into providing private network services to enterprises, including its own.

Rivals

Meanwhile major telecom players Bharti Airtel and Mahindra Group signed the first private 5G network deal.

Jio has stated that it will use private 5G as a major revenue stream in the future.

TCS is also expected to join the race.

For a total of Rs 88,078 crore, Reliance Jio acquired 24,740 MHz of 5G spectrum. 

Bharti Airtel purchased 19,867 MHz of 5G spectrum for Rs 43,084 crore.

Present 5G India domain

Currently, only Airtel and Jio provide 5G services in India.

Jio is the sole provider in India to use the 700 MHz band and 5G standalone access (SA).

The conglomerate’s aggressive expansion into sectors such as cement and healthcare has invited scrutiny over its elevated debt levels, while its large promoter shareholding has triggered concerns.

Its proposed mega $2.5 billion follow-on which launches later this month, will be used for capital expenditure and to pay off debt at its units, the company has said.

“… (We are) doing the FPO to bring in new shareholders; wanted to expand shareholder register,” Singh said.


Shreya Bose
Shreya Bose
  • 609 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online