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Reason why 5G spectrum bid is a big opportunity for Adani

5G spectrum bid

Here’s why the 5G spectrum bid is a big opportunity for Adani

Many people were surprised by the Adani Group’s intention to compete in the auction for 5G spectrum bid. It opens the door to entering the cellular mobility sector, which is now dominated by three sizable competitors. From a market where voice and data were once charged separately, India is one of the most affordable telecom markets in the world. The more affordable offering of today with unlimited voice calling and data usage liberally thrown in is a big story. In the process, it has practically all Indians in possession of a mobile smartphone. 
 
The organization has stated that it does not have any ambitions to provide consumer mobility; instead, it intends to use it for captive private networks. Having said that, the group’s control of 5G spectrum gives it an advantage, especially when we consider the diverse range of businesses it operates in, from FMCG, where it has a sizable portfolio of edible oils, to infrastructure with ports, road building, and power, to mention a few. The group’s late-month acquisition of a letter of intent (LoI) from the Department of Telecommunications (DoT) for the issuance of a unified license for the Gujarat circle was an intriguing development. As a result, the company can now provide long-distance telephony as well as Internet services throughout the 
 
Deven Choksey, MD of K R Choksey Securities, believes that this has a fairly clear implication.

5G spectrum bid

It is possible to do so by building a private virtual network, which is an appealing idea. Their companies currently use shared networks, and controlling spectrum may quickly reduce costs while also improving reliability, according to him. 
 
Although even the most cautious projections indicate that the government can collect at least Rs 4.3 lakh crore from the auctioning of spectrum, this would come at a cost. He argues that the group’s “main commercial base” and “natural for them to have a strong focus” are Gujarat when it comes to securing the LoI for Gujarat. Additionally, the possible purchase of 5G spectrum will change IT from a capex to an opex head. 
 
A venture into mobility is also feasible, but it is a difficult ask in the current market given how difficult costs are to recoup and how difficult it is to do so. 
 
Since telecom is such a mess and they might not be interested, that seems tough in the short term, according to Choksey. Enterprise connection is the other possibility, according to Vinit Bolinjkar, Head (Research), Ventura Securities. “It opens up opportunities like edge computing or driverless automobiles. Access to 5G spectrum could significantly alter this situation. He views the group’s ambition to be a major player in data as the backdrop. Early last year, Adani Enterprises partnered with EdgeConneX, a top data centre operator, to build 1 GW of data centre capacity over the following ten years. “A firm can be established on the capacity to serve a sizable base of corporate customers. They will, however, consider consumer mobility.