Adani Group has exited direct telecom spectrum ownership, marking the end of its short-lived foray into India’s competitive telecom space. Adani Data Networks, a subsidiary of Adani Enterprises, has sold 400 MHz of 26 GHz spectrum to Bharti Airtel and its unit Bharti Hexacom. This move effectively closes the chapter on its earlier ambitions to build private 5G networks across its industrial empire.
The Original Plan
In 2022, Adani surprised the industry by bidding in India’s 5G spectrum auctions. The group acquired airwaves worth Rs 212 crore with plans to set up private 5G networks across its ports, airports, power plants, and logistics hubs. The goal was to modernize operations through high-speed connectivity and automation.
Why It Didn’t Work
Analysts say telecom was never a core business for the Adani Group. Deploying and maintaining private 5G networks requires deep telecom expertise, a mature ecosystem of connected devices, and highly specialized infrastructure. Adani lacked these capabilities, which created significant execution challenges.
Regulatory Pressures
Government regulations added more hurdles. The Department of Telecommunications (DoT) requires operators to commercially launch services within a year of acquiring spectrum. Adani failed to meet these rollout obligations, triggering potential penalties. Although the company had paid about Rs 57 crore to the DoT, over Rs 150 crore was still pending. Selling the spectrum to Airtel helped Adani avoid additional financial and regulatory risks.
Financial Viability in Question
Insiders familiar with the matter cited several reasons for the retreat. The lack of clear commercial use cases, uncertain return on investment, and an underdeveloped device ecosystem made the spectrum deployment financially unviable. Additionally, the capital-intensive nature of telecom and the dominance of established players like Jio and Airtel made it difficult for a new entrant to gain ground.
What’s Next for Adani?
This move does not mean Adani is closing the door on 5G entirely. Analysts suggest the group may explore private 5G services in the future through partnerships, such as network leasing or slicing arrangements with existing telecom operators. These options would allow Adani to benefit from next-gen connectivity without owning or operating the infrastructure.
By exiting spectrum ownership, Adani can now focus on its primary businesses such as infrastructure, energy, and logistics. These sectors remain investment-heavy but are more aligned with the group’s strengths. The brief telecom experiment may have been bold, but it ultimately didn’t align with Adani’s long-term strategic priorities.
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