For the first time it can be seen that Gautam Adani is stepping back from any business. The Adani Group has decided to exit the telecom sector and may sell its 26GHz spectrum to Bharti Airtel led by Sunil Mittal. In 2022 Adani Data Networks acquired 400 MHz of spectrum in the 26GHz band for Rs 212 crore during a government auction. At the time the group announced that the spectrum will be used for private purposes like for its data centers and enterprise operations. Adani To Sell Business However now Adani Group has decided to sell the spectrum to Bharti Airtel. This decision is rare from the conglomerate who is known for aggressive expansions. The Department of Telecommunications (DoT) has strict guidelines for spectrum usage. Companies purchasing spectrum must meet specific conditions within a stipulated time frame if they can’t they can be penalised or fined. Though Adani Group initially planned to utilize the spectrum internally due to regulatory complexities it may have influenced its decision to divest claims media reports. Airtel On Deal Bharti Airtel Limited and its subsidiary Bharti Hexacom Limited have entered into definitive agreements with Adani Data Networks Limited (ADNL) a subsidiary of Adani Enterprises to acquire rights to use of 400 MHz of spectrum in the 26 GHz band in Gujarat (100 MHz) Mumbai (100 MHz) Andhra Pradesh (50 MHz) Rajasthan (50 MHz) Karnataka (50 MHz) and Tamil Nadu (50 MHz) Airtel said in a statement. The auction rules make it mandatory for players acquiring spectrum in 26 Ghz band to launch commercial service anywhere in the telecom circle where it has the radiowaves within 12 months of its allocation. Adani Data Networks will complete three years of spectrum allocation in August 2025. By the end of the third year it is mandatory for players holding spectrum in 26 Ghz band to deploy at least 90 sites in each circle where they hold the radiowaves. The spectrum allocation rule has a provision to impose a penalty of Rs 1 lakh per week for the first 13 weeks if the spectrum holder misses the roll out target. Thereafter the penalty is increased to Rs 2 Lakh for the next 13 weeks and to Rs 4 Lakh for the next 26 weeks subject to a maximum of Rs 1.40 crore for each phase. For delay of more than 52 weeks at any phase in addition to the penalty the spectrum assigned may be withdrawn and the bank guarantee shall be encashed to the extent of the fine if not paid. (With Inputs From PTI)