Adani Confirms Participation In 5G Spectrum Auction, To Provide Only Private Network Solutions

Adani group has confirmed its participation in the open bidding process for the 5G spectrum.

According to the company, they do not plan to enter consumer telecom services. The Adani group is participating in the 5G spectrum auction to provide private network solutions and enhanced cyber security.

“We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports and logistics, power generation, transmission, distribution, and various manufacturing operations,” the company 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,” it added.

Applications for participating in the July 26 auction of airwaves, including those capable of providing fifth-generation or 5G telecom services such as ultra-high-speed internet connectivity, closed on Friday with at least four applications.

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

A total of 72,097.85 MHz 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.

Cabinet last month approved 5G auctions at reserve prices recommended by the sector regulator Telecom Regulatory Authority of India (TRAI). The regulator had recommended an about 39 per cent cut in floor price for the sale of 5G spectrum for mobile services.

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

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

There is no mandatory requirement to make upfront payment by the successful bidders for the first time.

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