Adani Telecom Spectrum: Adani Group has confirmed its entry into the telecom sector. After this big announcement, the share price of Bharti Airtel has seen a fallback of 4.98% on NSE and hit the day’s low at ₹658.95. On the contrary, the share price of Vodafone India has risen by 6.5% to hit ₹8.95 on NSE.
On the weekend, India’s richest businessman Gautam Adani confirmed that Adani Group has applied for the 5G telecom spectrum auction. However, it clarified that the intention is not to enter the consumer mobility space, which fundamentally means conglomerate won’t be selling sim cards in the “two-and-a-half player” (Reliance Jio, Airtel, and Vodafone Idea) telecom market.
The main aim of Adani Group to join the 5G spectrum is to provide a private network with high cyber security for airports, ports and logistics, power generation, transmission, distribution, and various manufacturing operations of its current businesses.
The three major private players in the next-generation telecom spectrum race are
- Reliance Jio – Mukesh Ambani
- Bharati Airtel – Sunil Mittal
- Vodafone Idea – Sunil Mittal
Adani Group’s spokesperson said in the media
The spokesperson said in the media that “We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations.”
Motilal Oswal (one of the leading trading platforms in India) said “Plagued by an intense competitive environment in the last two decades, the thought of a new entrant in the sector gives investors jitters for the next round of severe competition, which could derail the current structural benefits (ongoing pricing improvement and market share gains).“
Adani Telecom Sepctrum
The auction is for spectrum in various frequencies.
- 600 MHz
- 700 MHz
- 800 MHz
- 900 MHz
- 1800 MHz
- 2100 MHz
- 2300 MHz
- 3300 MHz
- 26 GHz
According to the government, a total of 72,097.85 MHz spectrum worth at least ₹ 4.3 lakh crore will be put on the block during the auction. Ownership details of applicants would be published on July 12, and the bidders should be known then. The auction will set to commence on July 26, 2022.