Adani Group’s 5G Services: Adani Group has got the license for 5G services in the country about two years ago but it has not started providing services yet. Now regarding this, the Department of Telecom has asked Adani Group a question as to what is their plan. Moneycontrol has received this information from sources. According to sources, the government has sent several notices to Adani Data Networks, a subsidiary of Adani Enterprises, due to non-fulfillment of Minimum Rollout Obligations (MRO) for launching 5G services. The group did not say when its 5G services would be launched.
What will happen to the spectrum?
In the 5G spectrum auction of 2022, Adani Group had acquired 400 MHz spectrum of 26 GHz band for Rs 212 crore. This includes 100 MHz in Gujarat and Mumbai, and 50-50 MHz in Andhra Pradesh, Rajasthan, Karnataka and Tamil Nadu. Now according to sources the group plans to surrender it. If this happens, Adani Group’s plan to bring 5G services will be put on hold. The source said that the company has not yet formally informed about the decision to return the spectrum but has definitely informed the officials of the Telecom Department that setting up captive private networks for ports, airports, power generation and logistics is not commercially viable. It is visible.
Paying fine for not starting services
As per the auction rules, operators using the 26 GHz band are required to launch commercial services in their licensed service area within a year. There is a provision to fulfill the minimum conditions regarding this, if there is a penalty for not doing so. The penalty starts at Rs 1 lakh per week for the first 13 weeks, which then increases to Rs 2 lakh per week for the next 13 weeks, along with a show-cause notice. According to sources, Adani Group has paid the spectrum dues and the fine related to non-compliance with the rollout requirements. Now since Adani Group is planning to return the spectrum, there is a rule regarding it that it can be surrendered only after 10 years. Spectrum trading can definitely be started after two years. According to the source, at present the government does not plan to cancel the license of Adani Group.
As part of 5G rollout commitments, telecom operators have to launch commercial services in metro and non-metro circles. Under this, this condition can be fulfilled by providing services only in one metro area or one city of a non-metro circle. In such a situation, Adani Data Networks can fulfill these commitments by starting broadband services at one place or by connecting one of its ports to the data network. Telecom companies in India are using the 26 GHz band for fixed wireless access (FWA), but the spectrum owned by Adani is insufficient for large-scale FWA deployment.