NEW DELHI: Puttting an end to his 'big plans' in the telecom business, Adani Group chairman Gautam Adani decided to move out of the competitive and capital-heavy sector. And, he has decided to sell the airwaves, acquired in 2022 auctions, to Bharti Airtel .
Adani Data Networks acquired 400 MHz spectrum in 26GHz band for about Rs 212 crore, which will now be taken over by Airtel. Adani Group, which initially said that airwaves will be used for captive use, was running the risk of penalties by DoT for its non-compliance with minimum rollout obligations mandated for companies buying spectrum.
"Bharti Airtel and its subsidiary Bharti Hexacom, have entered into definitive agreements with Adani Data Networks, a subsidiary of Adani Enterprises, to acquire rights to use 400MHz of spectrum in the 26GHz band in Gujarat (100MHz), Mumbai (100MHz), Andhra Pradesh (50MHz), Rajasthan (50MHz), Karnataka (50MHz), and Tamil Nadu (50MHz)," Airtel said. The closing of the transaction is subject to the satisfaction of the standard conditions (including conditions stated in the spectrum trading guidelines) and statutory approvals, the company added.
The entry of Adani Group into telecom space in 2022 led to speculations around the group's 'future plans' for the segment. Many even speculated that the group, known for inorganic growth strategies, "had its eyes on acquiring stressed companies, such as struggling Vodafone Idea", though there were no confirmations on any such move.
Adani Group is known to take bold bets in sectors, such as airports, cement, data centres, power, and other infrastructure projects, and it was broadly believed that it may be building a similar narrative in telecom and digital sectors, something done successfully by Reliance. However, while the market always speculated about Adani's impending plans, the group maintained that it does not want to go big in the segment but rather use the spectrum for its own captive needs. It maintained that it planned to create a private network to support its businesses, from airports to power as well as data centres.
Analysts say the group's commitment to other investment-heavy segments might have prompted it to drop any telecom plans. "Heavy investments and intense competitive nature of the business may have prompted them to stay out," an analyst said.
Adani Data Networks acquired 400 MHz spectrum in 26GHz band for about Rs 212 crore, which will now be taken over by Airtel. Adani Group, which initially said that airwaves will be used for captive use, was running the risk of penalties by DoT for its non-compliance with minimum rollout obligations mandated for companies buying spectrum.
"Bharti Airtel and its subsidiary Bharti Hexacom, have entered into definitive agreements with Adani Data Networks, a subsidiary of Adani Enterprises, to acquire rights to use 400MHz of spectrum in the 26GHz band in Gujarat (100MHz), Mumbai (100MHz), Andhra Pradesh (50MHz), Rajasthan (50MHz), Karnataka (50MHz), and Tamil Nadu (50MHz)," Airtel said. The closing of the transaction is subject to the satisfaction of the standard conditions (including conditions stated in the spectrum trading guidelines) and statutory approvals, the company added.
The entry of Adani Group into telecom space in 2022 led to speculations around the group's 'future plans' for the segment. Many even speculated that the group, known for inorganic growth strategies, "had its eyes on acquiring stressed companies, such as struggling Vodafone Idea", though there were no confirmations on any such move.
Adani Group is known to take bold bets in sectors, such as airports, cement, data centres, power, and other infrastructure projects, and it was broadly believed that it may be building a similar narrative in telecom and digital sectors, something done successfully by Reliance. However, while the market always speculated about Adani's impending plans, the group maintained that it does not want to go big in the segment but rather use the spectrum for its own captive needs. It maintained that it planned to create a private network to support its businesses, from airports to power as well as data centres.
Analysts say the group's commitment to other investment-heavy segments might have prompted it to drop any telecom plans. "Heavy investments and intense competitive nature of the business may have prompted them to stay out," an analyst said.
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