5G

Adani's long term strategy could be to enter consumer mobility space or to take a strategic position in one of the telcos. But for now, Gautam Adani has decided to participate in the 5G spectrum auction to create the group's own private networks to support it's businesses. Competitors say that this will throw the company into a full on competition with them as they believe that a significant percent of their 5G business revenues will come from their enterprises. Analysts say that Adani could also offer to help other companies by offering private network solutions to expand their business. 

As Adani is stepping in they have to pool in an amount of ₹2800 crore for a pan-India millimetre band (24250-27500) spectrum to power the private network with 5G. It is important to note that the group gets to make the payment in twenty equal installments to the government. This will ease out their annual pay outs and it also includes the interest factor. 

An estimate of 400MHz of spectrum will be required by the group as it aims to assist enterprises alone and not mobile consumers. 

A comparison between Tata communications and the Adani group can be drawn here. Both the groups straddle in so many sectors across the nation. Tata has decided not to take part in the auction and to wait till the government gives spectrum directly to enterprises to set up their captive private networks but Adani has decided to take part and build its own private network now. Experts say waiting for one to two years to do build one's own private network when it can be done now and at a reasonable price makes no sense.