Adani Group has announced that it will foray into the telecom sector by participating in the 5G spectrum auction slated for July 26, 2022. It will be going against the likes of Airtel, Jio and Vi, who have an established customer base and brand image in the telecom sector. On Saturday, Adani Group clarified that it aims to offer private network services to enterprises and cyber security in the airport and more. This tells us that the company isn’t looking to offer B2C services for the time being and will only focus on B2B services.
The Adani Group will definitely have a challenge in front of itself to offer enterprise 5G network services. The other private telcos have worked with technology partners to prove their 5G networks can support a wide variety of use cases. Adani Group will also need to first showcase this in order to win the trust of the customers. Next thing, Adani Group will have to build a great reputation for offering consistent services with good after-sales support.
Jio, Airtel and Vi Enterprise Revenues Now Will be Distributed with the Adani Group
All the existing private telcos are primarily aiming to offer B2B services to enterprises in India with 5G networks. Now, they have a new competitor on the block. The only thing is, this competitor (Adani Group) has access to the kind of capital and resources which can give it a certain boost in bringing services to the market.
Further, the Adani Group can drive up the cost of spectrum for the other telcos in the upcoming 5G spectrum auction. Until now, it was expected that only Airtel and Jio would be the primary bidders for essential 5G airwaves as Vodafone Idea doesn’t have enough money. But now, the Adani Group will also be bidding for airwaves, and thus, there could be a heated bidding war for 5G airwaves in the upcoming 5G spectrum auction.
The Adani Group can potentially derail the 5G plans of Airtel, Jio and Vi. The B2B segment is a very important focus area as it would bring the maximum revenues for the telcos with 5G launch. For consumers, the telcos will continue to invest in 4G networks only.
It will be interesting to see how the Adani Group will fare against the private telcos in the ruthless Indian telecom sector. The spectrum auctions are now merely a few days away. The presence of Adani Group is a good sign for the sector as the enterprises will now get more options to choose from apart from the existing players.