The Adani Group, one of India’s leading industrial conglomerates, is under scrutiny for delays in the rollout of its 5G services. India’s Department of Telecommunications (DoT) has raised concerns over Adani Data Networks, a subsidiary of Adani Enterprises, failing to meet its minimum obligations for 5G deployment.
What Has Led to the Government’s Scrutiny of Adani Group?
The Indian government has issued multiple notices to Adani Data Networks for its delay in launching 5G services. According to reports from Moneycontrol and other media outlets, the company has yet to meet the rollout deadlines set in 2022, following its acquisition of spectrum in the 26 GHz band during the telecom auction.
Adani Group spent approximately $27 million securing 400 MHz of spectrum to provide 5G private services. However, despite acquiring the spectrum, the company has not yet launched its 5G services, prompting concerns from the DoT.
Could Adani Group Be Forced to Sell Its 5G Spectrum?
Sources suggest that Adani Group may be pressured into selling its acquired 26 GHz band spectrum. The company has yet to make an official decision about returning the spectrum. However, it has communicated to DoT officials that deploying 5G networks for its private use across various sectors, including ports, airports, power generation, and logistics, has not proven commercially viable.
This has led to speculation that Adani might offload its spectrum and rethink its strategy in the 5G space. No final decision has been made, leaving room for uncertainty.
The Current State of 5G Deployment in India
As of now, only two Indian telecom giants—Bharti Airtel and Reliance Jio—have launched 5G services across the country, which they did in October 2022. While Vodafone Idea (Vi) also plans to introduce 5G services, it has faced financial struggles and delays. Vi has indicated that its 5G rollout will occur in March 2025, marking yet another setback in its 5G deployment plans.
The competitive landscape is growing increasingly challenging as India’s major telecom players race to establish a foothold in the 5G market.
Why Did Adani Group Venture into the 5G Spectrum?
Adani Group’s move to acquire 5G spectrum in the 2022 auctions was part of a broader strategy to enhance its digital infrastructure. The group aimed to leverage private 5G networks to enhance its business operations in critical sectors, including logistics, power generation, and transportation.
However, with the government questioning the commercial viability of these plans, Adani’s 5G ambitions may be reassessed. The lack of significant progress has raised doubts about the long-term feasibility of this venture, given the rapid development of 5G networks by established players like Airtel and Jio.
How Will This Impact the Future of 5G in India?
Adani’s delayed 5G rollout raises important questions about the broader telecom landscape in India. While the entry of a new player like Adani could have introduced competition and innovation in the 5G market, delays in execution may dampen the overall speed of 5G adoption in the country. With only two major telecom providers currently in the race, it remains to be seen whether other companies, like Vi, will successfully deploy their 5G services.
In the meantime, Indian consumers and businesses are left waiting for broader 5G availability to unlock the benefits of faster, more reliable networks.
FAQ Section
Q1: Why has Adani Group delayed its 5G rollout?
Adani Group has faced challenges in deploying its 5G network for private use, citing commercial viability issues across its key sectors like logistics and power generation.
Q2: What could happen to Adani’s 5G spectrum?
Adani Group could be forced to sell its 26 GHz band spectrum if it fails to meet rollout obligations, although no final decision has been made.
Q3: Which companies are leading 5G deployments in India?
Currently, Bharti Airtel and Reliance Jio are the two main telecom companies that have launched 5G services in India, with Vodafone Idea planning to launch in March 2025.
Q4: What impact will Adani’s delay have on the 5G market in India?
Adani’s delay may slow down the overall adoption of 5G in India, especially in sectors where private networks could have driven faster deployment.
Q5: How much did Adani Group spend on its 5G spectrum acquisition?
Adani Group invested approximately $27 million in acquiring 400 MHz of spectrum in the 26 GHz band during the 2022 telecom spectrum auctions.
