NEW DELHI: Frustrated with the delay in rollout of 5G services by the Adani Data Networks Ltd (ADNL), the Department of Telecommunications (DoT) has shot off another letter to the company reminding it of its obligations towards 5G network in India. The letter has sought an explanation for the delay in launching commercial 5G services in the country. According to government officials, the DoT is still awaiting a response from ADNL.
The company, which is a subsidiary of Adani Enterprises Ltd, acquired 5G spectrum in 2022. As per the regulatory guidelines, the company is mandated to deploy a commercial 5G network by 10 October 2024. If it fails to do so, the government may revoke the allocation of spectrum.
“We have written to Adani Data Networks to inquire why it has not yet launched 5G services in India. Initially, the company indicated plans to launch a captive network for its business operations. However, the license mandates that they must roll out commercial 5G services nationwide,” said a senior DoT official. The DoT has sent a similar letter in January this year, seeking an explanation for delay in launch of 5G services. Queries sent to Adani Group for a statement remained unanswered at the time of filing of the report.
Adani Data Networks, the telecommunications arm of the Gautam Adani-led conglomerate, holds a unified license for access services, allowing it to provide a full range of telecom services across India. The company acquired 400 MHz of spectrum in the 26 GHz (millimeter wave) band during the July 2022 auction for Rs 212 crore.
Adani secured spectrum in six circles—Andhra Pradesh (50 MHz), Gujarat (100 MHz), Karnataka (50 MHz), Mumbai (100 MHz), Rajasthan (50 MHz), and Tamil Nadu (50 MHz)—focusing on areas where it has significant business interests. According to license conditions, ADNL was required to launch commercial 5G services in both metro and non-metro circles within the first year.
Failure to meet these rollout deadlines may result in the imposition of late fees, structured as follows: R1 lakh per week for the first 13 weeks, R2 lakh per week for the following 13 week and R4 lakh per week for the subsequent 26 weeks. “These penalties can accumulate up to R1.40 crore for each phase of delay.
If the delay exceeds 52 weeks, the government may also withdraw the assigned spectrum,” says the law. Reports indicate that ADNL has previously incurred fines totaling R5 to 6 crore for similar delays. Since the spectrum allocation, Adani Data Networks remains the only company that has not yet launched its 5G service in India.