In the July 2022 spectrum auctions, Adani Data Networks acquired 400 megahertz in the 26 GHz band
Indian company Adani Group may come under scrutiny from India’s Department of Telecommunications (DoT) for delays in deploying 5G services more than two years after obtaining a unified telecom license, according to a local press report.
The report by Moneycontrol stated that Adani Data Networks, a subsidiary of Adani Enterprises, has received multiple notices from the government for failing to meet its minimum rollout obligations (MRO) for 5G.
In the July 2022 spectrum auctions, Adani Data Networks acquired 400 megahertz in the 26 GHz band. This included allocations of 100 megahertz each in Gujarat and Mumbai and 50 megahertz each in Andhra Pradesh, Rajasthan, Karnataka and Tamil Nadu. While Adani holds a unified license for telecom and internet services, it initially planned to use the spectrum for captive private 5G networks to support its business operations.
The Adani Group has not yet announced a timeline for the launch of 5G services. Citing insider sources, the report stated that the group is considering surrendering the 26 GHz spectrum acquired during the 2022 auctions. While no official decision has been communicated, the company has reportedly informed DoT officials that deploying private networks for its business operations, such as ports, airports, power plants, and logistics, is commercially unviable.
Adani has reportedly paid spectrum dues and associated penalties for failing to meet rollout obligations. Despite these delays, the government does not appear to have any immediate plans to revoke Adani Data Networks’ license, according to the report.
Reports suggest that the group is facing difficulties in ensuring a viable return on investment, making the commercial deployment of the spectrum impractical for now.
Under auction rules, operators must begin commercial services within their licensed areas within one year of securing the frequencies. Current regulations require spectrum to be held for at least 10 years before surrendering, though trading is permitted after two years.
Indian telcos Reliance Jio Infocomm and Bharti Airtel started to deploy their 5G networks in October 2022 and now reached a nationwide coverage with their 5G networks. Meanwhile, Vodafone Idea, which had also secured 5G licenses, recently confirmed plans to start deploying 5G services in India in March through a phased program. Vodafone Idea has already start testing 5G in a number of telecom circles in India.
