Adani Data Networks, a subsidiary of Adani Enterprises, has agreed to sell its entire 26 GHz spectrum holdings to Bharti Airtel and its unit Bharti Hexacom, marking a strategic retreat from direct participation in India's telecom sector. The deal, announced Tuesday, if approved, transfers 400 MHz of millimetre wave spectrum to Airtel, effectively ending Adani's plans to build private 5G networks.
Also Read: 5G Spectrum Auction: Spectrum Acquisitions of Adani Data Networks
Initial Foray into 5G Spectrum
The move comes nearly three years after Adani Group jolted the industry by entering the 2022 5G spectrum auctions. It had acquired 100 MHz each in Gujarat and Mumbai, and 50 MHz each in Andhra Pradesh, Rajasthan, Karnataka, and Tamil Nadu, for a total of Rs 212 crore. The spectrum was intended for captive private networks across Adani's ports, airports, logistics hubs, and power assets.
Building Private Networks
However, according to the report, industry analysts say that telecom was never a core focus for the Adani Group. The operational and regulatory complexities of building and managing private networks—especially for a non-telecom entity—made the venture commercially unviable.
Also Read: Airtel to Acquire 400 MHz Spectrum in 26 GHz Band From Adani Data Networks
Analyst Perspectives on the Exit
"Adani brought spectrum for captive 5G private network for industrial use cases across ports, mining, etc. However, it is not easy for non-telecom operators to deploy and maintain private networks, as it requires specific technology capabilities. Thus, with spectrum not being used and penalties related to rollout obligations, it made sense for Adani to sell its spectrum to Airtel," Ashwinder Sethi, partner at Analysys Mason, was quoted as saying in a Moneycontrol report.
Another analyst was quoted as saying in the report, "The capital-intensive nature of telecom and fierce market competition may have influenced Adani’s decision to step back." He added that the group is committed to other investment-heavy segments, which might have prompted it to drop telecom plans.
According to government sources, Adani has paid around Rs 57 crore to the Department of Telecommunications (Dot), while the remaining sum of over Rs 150 crore, excluding interest, will now be paid by Airtel to the DoT over time, the report said.
Also Read: Airtel Business Deploys Private 5G for Leading Indian Manufacturer to Advance Industry 4.0
Regulatory Compliance
Despite holding a unified licence, Adani failed to meet minimum rollout requirements, which mandate commercial service in each licensed circle within the first year of acquisition. This had triggered repeated notices and potential penalties from the DoT.
Sources indicate that the group, in response, had informed the DoT earlier this year of its intention to either surrender or trade the spectrum, citing a lack of viable deployment scenarios.
The report quoted sources as saying that, "the absence of clear commercial use cases, uncertain ROI, and a still-developing device ecosystem made spectrum deployment financially untenable."
Future Prospects
While Adani has exited spectrum ownership, analysts cited in the report note that the group has not completely ruled out telecom. It may continue to explore private 5G services through partnerships, including network leasing or slicing arrangements with established operators.
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