It’s been two years since the launch of 5G services, but Adani Data Networks is still struggling to roll out captive networks in the absence of use cases.
While the company has paid the spectrum dues to the department of telecommunications (DoT) along with penalties for not meeting the minimum spectrum rollout obligation, sources said that the group is also evaluating options to surrender the spectrum.
In 5G spectrum auctions held in July 2022, Adani Data bought 400 MHz spectrum in the 26 GHz band for Rs 212 crore. The company has 100 MHz of 5G spectrum each in Gujarat and Mumbai, and 50 MHz each in Andhra Pradesh, Rajasthan, Karnataka and Tamil Nadu.
DoT has sent multiple communications to Adani Group asking why the company has not been able to meet minimum rollout obligations of launching 5G services.
Queries sent to the Adani Group last week did not elicit any response at the time of going to press.
Unlike telecom operators, for Adani Group, the spectrum deployment would have been for private captive networks for connectivity in ports, airports, logistics, power generation, etc, and not consumer mobility, as clarified by the company at the time of spectrum purchase.
Officials said the company has the unified licence, which mandates commercial deployment of 5G spectrum. The company can meet the rollout obligations by launching either broadband services in any one area or connect any of its ports through data networks.
As per the 5G rollout obligations, telecom operators had to commercially launch services anywhere in metro as well as non-metro circles. This means in a circle like Delhi, the services can be made available just in one area, not the entire city. In a non-metro circle, the same needs to be done in at least one city.
The private network as a use case for 5G, however, has not been picked up so far. Therefore, in the absence of a specific use case and the benefits expected earlier, the group is not finding it commercially viable to deploy the spectrum at the moment, sources said.
According to officials, surrender of any spectrum can happen after a period of 10 years. The spectrum trading, however, is allowed after two years. DoT is continuously in touch with the company to understand its next course of action on 5G rollout.
» Read More
