Mumbai: Adani Data Networks, a participant in the Adani Group, bought 400 MHz of the 26 GHz (mmWave) band across six circles for Rs 212 crore in the latest spectrum auction, saying it intends to to use the airwaves for captive networks through the activities of the conglomerate.
Adani Data Networks has purchased airwaves in service areas of Gujarat, Mumbai, Andhra Pradesh, Karnataka, Tamil Nadu and Rajasthan, Telecoms Minister Ashiwni Vaishnaw told reporters on Monday.
The 26 GHz band attracted interest from all participants, given its usefulness for captive networks and the removal of spectrum usage fees from the ongoing auction. No less than 72% of the spectrum offered in this band received offers.
“The new entrant, Adani Data Networks, seems to have limited its bidding to certain circles, where the parent entity is present via airport, ports, etc., for captive use,” Japanese broker Nomura said in a statement. report.
Her participation in the auction was well below expectations, given that she put down an earnest money deposit (EMD) of Rs 100 crore. Although this was the lowest among the four participants in the auction, his likely expenditure in the auction was predicted to be Rs 900-1,000 crore based on the EMD amount.
A surprise auction participant, Adani Group, said it intended to participate in the sale of 5G spectrum to provide private network solutions as well as enhanced cybersecurity at airports, ports and logistics. , power generation, distribution and manufacturing operations. He also said he has no intention of playing for the consumer mobility business. While it may not have been an aggressive bidder in the auction, Adani Data Network’s presence may have had some impact on the process. “Amazingly, telecom operators have offered almost Rs 128 billion of spectrum in legacy bands which we believe could be due to the threat of a new entrant entering the space in the longer term” , added Nomura analysts.
The company is in the process of acquiring a unified license for international and domestic long distance telephony and Internet services for the circle of Gujarat, which implies that it will focus on geography to deploy the waves acquired under the auction.
Shares of the group’s flagship company Adani Enterprises rose 3.48% to close at Rs 2,658.90 on BSE Wednesday.