Govt sent multiple notices to Gautam Adani led Adani Group for failing to meet…likely to surrender…claims report
GH News January 14, 2025 06:06 PM
The Department of Telecommunications (DoT) has raised concerns with Adani Data Networks a subsidiary of Adani Enterprises over delays in meeting the minimum rollout obligations (MRO) for 5G services. The Adani Group which received a unified telecom license over two years ago has yet to launch 5G services prompting multiple notices from the DoT according to the Money Control report.
Spectrum Surrender On Horizon?
Media report suggest that the Adani Group is considering surrendering the 26 GHz spectrum acquired during the 2022 auctions. The spectrum initially intended for captive private 5G networks across the groups ports airports power generation and logistics businesses has reportedly been deemed commercially unviable. While no formal communication about surrendering the spectrum has been made the group has informally conveyed its intentions to DoT officials claimed the Money Control report citing their sources.
Compliance and Penalties
Despite paying its spectrum dues and penalties for non-compliance Adani Data Networks has not clarified a timeline for 5G deployment. Auction regulations require operators to launch commercial services within a year of acquiring spectrum. Failure to comply results in escalating penalties starting at Rs 1 lakh per week for the first 13 weeks doubling thereafter and culminating in a show-cause notice. Spectrum surrender is only permitted after 10 years while trading becomes an option after two years.
Obligations and Use Cases
To fulfill rollout requirements operators must launch services in metro and non-metro areas even if limited to a single location. Adani Data Networks could comply by providing broadband services in a metro area or connecting one of its ports via a data network.
During the July 2022 spectrum auction Adani Data Networks acquired 400 MHz in the 26 GHz band for Rs 212 crore including allocations in Gujarat Mumbai Andhra Pradesh Rajasthan Karnataka and Tamil Nadu. While the spectrum was secured to develop private 5G networks challenges in return on investment have delayed its deployment.