In a major announcement, Adani Data Networks has confirmed that the conglomerate will participate in the 5G spectrum auction in coming months. The company will use the network solutions for other businesses like ports and airports and will not offer the services to the consumer mobility market. However, industry experts speculate that the move will have lasting impacts on the market.
This move will pose a challenge to the big telco companies namely Bharti Airtel, Vodafone Idea, and Reliance Jio. Although Adani Data Networks has clarified that they would not offer services in the consumer mobility space but the participation will instigate aggressive bidding, market experts believe.
A letter of intent was issued by the Department of Telecommunications (DoT) for grant of Integrated License with authorization of ILD, NLD and ISP-B for Gujarat circle.
The license could be used to offer long distance calls and commercial internet services. The company confirmed that the company will participate in the bidding to build a private network that will be used in its other businesses. The competition for the 5G spectrum is speculated to intensify as the giants like Jio, Vodafone and Airtel will try to strengthen their position in the market.
What are Private 5G networks?
Private 5G network is similar to the public 5G network. However, it allows priority access or licensing to the wireless spectrum. It is used in facilities that require enhanced and seamless coverage, speed and security capabilities that could not be attained by other network technologies.
Apart from announcing the spectrum auction last month, the government also proposed and invited tech companies and other organisations to acquire spectrum directly from it to build 4.0 applications like artificial intelligence, internet of things, etc. These networks are used as Private 5G Networks and they serve specific organisations and facilities.
According to the information made public by the Department of Telecommunications, Adani Data Networks’ net worth is Rs.248 crore as provided in the bid application for the spectrum.
On the other hand, the market leader Reliance Jio’s net worth is shown at Rs.1,97,790 crore as of 31st March, 2022. Mukesh Ambani’s owned Jio will also participate in the bidding for the 5G spectrum.