NEW DELHI: Gautam Adani-led Adani Group may foray into consumer mobility in future after acquiring private 5G spectrum, according to analysts. A new entrant like Adani with strong financial backing will not only increase the competition but take away the market share of operators.
“Although the group has expressed no plans to enter the consumer mobility space, one cannot deny that there will always be a possibility. At this point, we will be closely monitoring the developments and don’t expect them to enter the consumer mobility space in near future,” said Charu Paliwal, Research Analyst, Counterpoint Research.
She further added that there is a strong possibility of Adani group disrupting the consumer mobility services, if at all they enter this space. “When Jio entered, there was a large population base not using the mobile services and its entry helped in connecting them. Jio quickly gained these virgin subscribers as well as subscribers of its competitors. However, the market is more mature now and entry of Adani will directly erode market share of operators like Jio, Airtel and Vi,” said Paliwal.
The conglomerate on Saturday said that it is taking part in the upcoming 5G spectrum auction. The company, however, categorically denied to be in a consumer mobility space and will participate in the 5G spectrum auction to have a private network. With its own 5G network, the company will provide network solutions along with enhanced cyber security in the airport, ports and logistics, power generation, transmission, distribution, and various manufacturing operations. However, many experts believe the conglomerate may test the taste of consumer retail space sometime in future.