Are Adanis Mulling To Exit The 5G Spectrum Space?

It is reliably learnt that Adani Data Network, which was the surprise entrant in the 5G spectrum auction conducted by the Telecom Department, has silently walked out of the space.  Adani had acquired the right to use 400 MHz of the spectrum in the 26 GHz milimetre waveband for 20 years. Adani it seems has not paid the requisite auction money by the stipulated period perhaps an indication it is having second thoughts about its entry into 5G space. Generally, in such cases, the bank guarantee, given at time of bidding, would be encashed and a penalty charged. Reportedly, the Department has decided to waive off both as the ecosystem is yet to be developed.  After the auction in September 2021, Telecom Minister Ashwini Vaishnaw had said that the acquirers of spectrum would roll out their 5G services by October 2022. The government had received bids for Rs 150,173 crore from Jio, Bharti Airtel, Voda and Adani. The total amount mopped up by the government from 5G spectrum capable of offering ultra-high speed mobile internet connectivity was Rs 77,815 cr. At the time of bidding for the 400 MHz spectrum, Adani Group had indicated that it was the group’s first step in integrating its digital infrastructure portfolio including data centres, terrestrial fibre and submarine cables, industrial cloud, AI innovative labs, cyber security and super apps. The Telecom department was supposed to hold the next round of spectrum auction in February 2024 but with elections round the corner, the auction was not held, and may be held once the new government is sworn in.  This time round, however, the Government expects operators to go for lower bands beginning with 600MHz for many which are lapsing soon. Back in September 2021, the Government decided that spectrum auctions should be held annually.