Jio, Airtel won’t be impacted by Adani’s telecom licence

By taking part in the 2022 spectrum auctions, Adani Group unexpectedly entered the Indian telecom industry. The 5G airwaves were the subject of the spectrum auction. Many people expected a move like Jio after the early announcement of the Adani Group’s arrival. However, Adani Data Networks made it clear that it would solely concentrate on the business-to-business (B2B) sector of the market and would not enter the consumer market. A complete telecom licence was recently granted to Adani Data Networks, a subsidiary of the Adani Group that will operate in the telecom industry. The universal licence (UL) for telecom services is currently held by Adani Data Networks.

But the business intends to concentrate on providing enterprise-level services. Airports, data centres, and other facilities are already included in the portfolio of the Adani Group. Recent spectrum auctions allowed for the purchase of 5G airwaves, which may be utilised to improve connection capabilities within one’s businesses and subsequently extend those same services to other businesses.

In the early stages of the 5G consumer market, the Adani Group would be best served to avoid Jio and Airtel. Multiple factors account for this. One is that all of the current telcos have pre-existing brands. Second, there won’t be a sudden surge in demand for 5G. Thus, making a significant financial investment in it would need a lengthy period of waiting for rewards. Long-term, that wouldn’t have been best for the business.

Jio and Airtel don’t have to be concerned about the Adani Group directly competing in consumer and corporate markets. Adani Group lags considerably behind the telcos in terms of the