5G Spectrum Auction: Adani confirms entry into 5G telecom spectrum race!

Опубликовано: 08 Апрель 2025
на канале: Keep it Simple
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This video is in Hindi and covers the following topics:

Adani confirms entry into 5G telecom spectrum race!
क्या आप Future में अपने Phone के लिए Adani के Sim Card ले पाएंगे?

The Cabinet, last month, approved 5G auctions at reserve prices recommended by the sector regulator Telecom Regulatory Authority of India (TRAI)

The current base prices were reduced to 40% of the initial price recommendation in 2018 but the telcos have been demanding a 90% reduction from 2018 levels.

A total of 72,097.85 MHz of spectrum worth at least Rs 4.3 lakh crore will be put on the block during the auction, set to commence on July 26, 2022.

The auction will be held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.

High-band spectrum may give you blazing fast speeds and lots of capacity —but only if you are close to the cell site. Low-band may provide excellent coverage but the network performance may only be a small step up from 4G.

The validity of the right to use spectrum will be of 20 years.

Overall, the payment terms have been eased for bidders in the upcoming auction.

For the first time ever, there is no mandatory requirement to make upfront payment by the successful bidders.

Payments for spectrum can be made in 20 equal annual installments to be paid in advance at the beginning of each year, a relaxation that is expected to significantly ease cash flow requirements and lower the cost of doing business in this sector.

The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance installments.

No SUC (spectrum usage charges) will be levied for the spectrum acquired in this auction.

Adani Group on 9 July confirmed that its is one of the many applicants participating in the open bidding process for 5G Spectrum services. Though, the group said that its intention is not to be in the consumer mobility space.

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

Apart from this, the group said if awarded 5G spectrum in the open bidding, it will also align with its recent announcement of significantly increasing the Adani Foundation's investments in education, healthcare and skill development in rural areas.

Among other things, Adani Group said that they would be needing ultra high quality data streaming capabilities through a high frequency and low latency 5G network across all our businesses.

Applications for participating in the July 26 auction of airwaves closed on Friday with at least four applications.

Earlier, the telecom ministry has specified in its rules for inviting applications that a new entity can apply for spectrum as long as it gives an undertaking that it will obtain the unified license for providing access services or mobile and or data services in any part of the country.

Jio, Airtel and Vodafone Idea — the three private players in the telecom sector — applied

The fourth applicant is Adani Group, one of the sources said, adding that the group had recently obtained National Long Distance (NLD) and International Long Distance (ILD) licenses.

As per the auction timelines, ownership details of applicants are to be published on July 12 and the bidders should be known then.

Ambani and Adani, who hail from Gujarat and went on to build mega business groups, had till recently not had a direct face-off. While the former expanded from the oil and petrochemicals business into telecom and retail, the latter diversified from the ports segment to coal, energy distribution and aviation.

But increasingly, their interests are overlapping, setting what some say is the stage for a clash.

Adani has in the recent months set up a subsidiary for a foray into petrochemicals — a business that Ambani’s father Dhirubhai began with before its downstream and upstream operations.

Ambani too has announced multi-billion-dollar plans for new energy business, including Giga factories for solar panels, batteries, green hydrogen and fuel cells. Adani, who had previously announced plans to be the world’s largest renewable energy producer by 2030, too has unveiled hydrogen ambitions.

And now, if the Adani group participates in the 5G auction on July 26, it will be the first direct competition with Ambani.

Telecom analysts said that if Adani Group acquires spectrum through auctions and takes a private network license, it can build its captive network.

If it acquires a UL (Unified License), even if does not get into providing telecom services, it can get into the business of building private networks for other enterprises.

Depending upon the market and the opportunities, it can even at some stage get into all forms of telecom services.