NEW DELHI: In what could signal Adani Data Network's exit from the telecom sector, the company is set to grant Bharti Hexacom Limited, a subsidiary of Bharti Airtel Limited, rights to use 400 MHz of spectrum in the 26 GHz band.
According to a Tuesday release from Airtel, the transaction is subject to standard conditions, including compliance with Spectrum Trading Guidelines and requisite statutory approvals. The spectrum allocation is distributed across several key regions: Gujarat (100 MHz), Mumbai (100 MHz), Andhra Pradesh (50 MHz), Rajasthan (50 MHz), Karnataka (50 MHz), and Tamil Nadu (50 MHz).
Adani Data Network holds a unified license for access services, enabling it to offer all telecom services in India. The company made headlines in 2022 when it entered the telecom space by participating in the spectrum auction alongside Reliance Jio, Bharti Airtel, and Vodafone Idea. It acquired 400 MHz in the 26 GHz band for Rs 212 crore during the July 2022 auction. The holdings include 100 MHz each in Gujarat and Mumbai, and 50 MHz each in Tamil Nadu, Karnataka, Andhra Pradesh, and Rajasthan.
Following the acquisition of the unified license, there was speculation that Adani might enter the consumer telecom market, potentially becoming a competitor to Reliance Jio and Bharti Airtel. However, the company later clarified that the spectrum would be used for its enterprise operations—such as data centers, airports, gas retail, and port infrastructure—rather than for public telecom services.
Since the auction, Adani has not launched any telecom services or participated in subsequent spectrum auctions. However, it has continued to incur penalties for not meeting the rollout obligations tied to its spectrum holdings.
According to the Department of Telecommunications (DoT), for 5G spectrum in the 3.3–3.5 GHz band, telecom operators must commercially launch services in at least one metro area and one city or town in a non-metro area within the first year of acquisition.
For the 26 GHz band, operators are required to roll out commercial services anywhere in the licensed service area within a year. Failure to meet these obligations results in penalties of Rs 1 lakh per week for the first 13 weeks, increasing to Rs 2 lakh per week for the next 13 weeks.
Additionally, spectrum can only be surrendered after 10 years. Only then can a company reclaim the amount paid for the airwaves and relinquish its rights for the following 10 years.