The competition in the telecom sector is all set to increase again as Adani Group is planning to launch its services. In fact, the Department of Telecom has said that Adani Data Networks, Vodafone-Idea, Bharti Airtel, and Reliance Jio have shown their interest in the upcoming 5G spectrum auction.
“Applications have been received from the…applicants for participation in the 2022 Auction for rights to use Spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz Bands,” the Department of Telecom (DoT) said.
Notably, DoT is selling spectrum in 10 bands, such as 26 GHz bands, 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, and 3300 MHz.
For the unaware, the spectrum auction is scheduled for July 26th and is expected to see fierce competition for a few frequency bands as existing telecom operators will start expanding or strengthening their position.
Adani Group In Telecom Sector
This development was confirmed by the Adani Group and said that it has already applied to the 5G spectrum auction. The company also issued a statement and said, “As India prepares to roll out next-generation of 5G services through this auction, we are one of the many applications participating in the open bidding process,” reads Adani Group statement.
“We are participating 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,” the statement added. This clearly means that Adani Group has no intentions to launch its telecom services in the country.
Adani Group: Competition Might be Increased In Telecom Sector
On the other hand, several brokerage firms and analysts believe that Adani Group is likely to increase competition in the auction, which was expected to receive a dull response.
“We consider this news flow negative for incumbent telcos as it increases competition in upcoming auction bidding as well as in the long-term opportunity to target the enterprise space,” BofA Securities in a note.
“However, with Adani group ruling out offering consumer mobility services, we believe that its participation in 5G spectrum auctions will be limited to 3.5 GHz and 26 GHz bands for provision of private enterprise 5G network services,” said Credit Suisse.
Spectrum Bands And Availability
It is worth noting that the Government is expected to receive 4.5 lakh crore via spectrum auction. Moreover, it is expected that the rollout of the services will start in August or September.
In addition, the services are likely to be available first in 13 cities, including Chennai, Gandhinagar, Pune, Gurugram, Delhi, Jamnagar, Hyderabad, Lucknow, Mumbai, Ahmedabad, Chandigarh, Bengaluru, and Kolkata. However, this number is likely to be increased to 20 to 25 cities by the end of 2022 as per DoT.
