Adani Group joins 5G race, to take on Reliance Jio and Airtel: 7 key things to know – Times of India

It’s official. Billionaire Gautam Adani-led group has confired its surprise entry into the race to acquire telecom spectrum. This will which will pitch it directly against Mukesh Ambani‘s Reliance Jio and telecom czar Sunil Bharti Mittal‘s Airtel. This will be the groups, had till recently not had a direct face-off. While the former expanded from the oil and petrochemicals business into telecom and retail, the latter diversified from the ports segment to coal, energy distribution and aviation. And now, if the Adani group participates in the 5G auction on July 26, it will be the first direct competition with Ambani.
What did Adani Group say
“As India prepares to roll out next generation of 5G services through this auction, we are one of the many applications participating in the open bidding process,” the group said in a statement.”We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations,” the statement added.
When is 5G auction taking place
Fifth-generation or 5G telecom services auctions are set to start on July 26, the department of telecom notified in its notice of inviting applications (NIA). The Cabinet, last month, approved 5G auctions at reserve prices recommended by the sector regulator Telecom Regulatory Authority of India (TRAI). The regulator had recommended an about 39% cut in floor price for the sale of 5G spectrum for mobile services.
Which all telecom service providers are in the race for 5G spectrum
Reliance Jio, Airtel and Vodafone Idea and Adani Group have applied. Adani Group had recently obtained National Long Distance (NLD) and International Long Distance (ILD) licences.
How much spectrum will be on auction
A total of 72,097.85 MHz of spectrum worth at least Rs 4.3 lakh crore will be put on the block during the auction. The auction will be held for spectrum in various low (600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz), mid (3300 MHz) and high (26 GHz) frequency bands.
When are 5G services expacted to roll out
5G services in India are likely to roll out in the last quarter of the year.
What is the validity of the spectrum
The validity of the right to use spectrum will be of 20 years. The bidders would be given an option to surrender the spectrum after 10 years with no future liabilities with respect to balance installments. No SUC (spectrum usage charges) will be levied for the spectrum acquired in this auction.
What are the 5G payment terms for telecom companies
Overall, the payment terms have been eased for bidders in the upcoming auction. For the first time ever, there is no mandatory requirement to make upfront payment by the successful bidders. Payments for spectrum can be made in 20 equal annual installments to be paid in advance at the beginning of each year, a relaxation that is expected to significantly ease cash flow requirements and lower the cost of doing business in this sector.
While the 5G spectrum in nine frequency bands will be auctioned to telecom operators, the Notice Inviting Applications — the bid-related document issued by the Telecom Department — said tech firms will be allowed to take the 5G spectrum for their captive non-public network on lease from the telecom companies. The bid document said direct allocation of spectrum to tech companies will follow a demand study and sector regulator TRAI’s recommendation on aspects such as pricing and modalities of such allocation.
(With agency inputs)