Adani Data Network, Jio, Airtel, Vodafone Idea to bid for spectrum – Times of India

New Delhi: Billionaire Gautam Adani-led adani data networkReliance Jio, Bharti Airtel And vodafone Idea has applied to participate in the upcoming 5G auctionAccording to the list released by the Department of Telecommunications on Tuesday.
The spectrum auction starting July 26 could see aggressive bidding for some frequency bands, with Adani Data Network and established players Reliance Jio and Bharti Airtel trying to tighten their grip on the industry.
“… applications have been received from applicants to participate in the 2022 auction for rights to use spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz. 3300 MHz and 26 GHz bands,” the Department of Telecommunications (DoT) said.
Applicants have until July 19 to withdraw their applications.
The Adani Group on Saturday said it was in the race to acquire spectrum, which it said would be used to build a private network to support its business from airports to power and data centres.
A total of 72,097.85 MHz of spectrum worth at least Rs 4.3 lakh crore will be put on the block during the auction beginning July 26, 2022.
The auction will be conducted for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.
On Monday, BofA Securities said in a note on Adani Group’s plan to bid in the 5G auction: “We consider this news flow to be negative for existing telcos as it will target as well as compete in the upcoming auction bidding.” also enhances the long-term opportunity of the enterprise location”.
Brokerage CLSA wondered why Adani would bid in the auction versus waiting for direct spectrum assignment.
“The question is why will Adani bid in the auction versus waiting for direct spectrum assignment? Adani’s entry will create uncertainty over spectrum pricing in the 5G auction, which is expected to see bidding competition mainly between Bharti Airtel and RJio. There was hope,” it said in a report. ,
Goldman Sachs said that while the group has stated that it does not intend to enter the consumer mobility space, “we believe that if the Adani Group buys spectrum in the upcoming auction, it could potentially increase competition in enterprise 5G.” Apart from this, opening doors for Adani Group to expand into consumer mobile services over time”.
Globally, 5G services have been launched in three bands – 700MHz (coverage), 3.5GHz (5G coverage and capability) and 26GHz (capacity and low latency).
“While the Adani Group has declined to offer consumer mobility services, we believe that there is participation in 5G Spectrum The auction for the provision of private enterprise 5G network services will be limited to the 3.5 GHz and 26 GHz bands,” Credit Suisse said.
It said the group’s effort to provide a standalone 5G enterprise network solution was a “vague one”, noting that globally, 5G enterprise use cases are still in the pilot stages.
Credit Suisse also questioned the rationale for bidding for 5G spectrum in the auction after the Center has already allowed private enterprises to set up a private non-public network by obtaining spectrum from the government at a nominal cost without any license fee. Was.
“Whereas Rs 31,700 crore is likely to be spent on acquiring 100 MHz block on pan-India basis in 3.5 GHz band and another Rs 3,500 crore for 500 MHz in 26 GHz band. Of course, these are subject to convenient payment terms. Come along,” it said.
Credit Suisse felt that the chances of Adani Group entering consumer dynamics in the future are “non-zero”.
“While the Adani Group has categorically denied its intention to enter the consumer mobility business, we believe that market participants may still view this as a low, distant prospect, given the history of the sector. , this would require a meaningfully higher capital commitment…” it added.