Adani Data Networks Gets License to Provide Telecom Services; A Rival to Airtel and Jio?

Adani Data Network has received a unified license to provide telecom services from the Department of Telecommunications (DoT). Being a unit of Adani Group, the company can provide telecom services in six circles, including Andhra Pradesh, Karnataka, Rajasthan, Tamil Nadu, and Mumbai. Having obtained a unified license, the recently formed company is now on par with telcos such as Jio and Airtel.

Earlier this month, Prime Minister Narendra Modi inaugurated 5G services in the country at the India Mobile Congress (IMC) 2022. Meanwhile, Adani Group has entered into the telecom industry and participated in the 5G spectrum auction as well.

Will the latest entrant in the arena create a disruption in the country once again?

Adani Group Gets Unified License from DoT

As per PTI, with the unified license, Adani Data Networks will be eligible to carry long-distance calls to its networks and provide internet services. The long-distance license will create a revenue stream for the company as it can transmit data and voice traffic to telcos and other enterprises.

Notably, the Adani Group entered the telecom sector after participating in the 5G spectrum auction. It bought a total of 400MHz spectrum in the 26GHz band for Rs. 212 crores. The company has 100MHz of 5G spectrum each in Mumbai and Gujarat and 50MHz each in Rajasthan, Tamil Nadu, Karnataka, and Andhra Pradesh.

As per the company, it participated in the 5G spectrum auction to provide private network solutions along with improved cyber security in ports and logistics, airports, power generation, various manufacturing operations, and other sectors. For now, the company doesn't mention retail 5G services, but industry experts believe that it cannot be stopped from offering consumer mobility services in the future.

What is a Unified License?

The main objective of a Unified Licensing Regime is to encourage the free growth of services and applications leveraging the technological developments in the ICT (Information and Communication Technology) sector. It simplifies the procedure of licensing in the telecom industry and makes sure resources are used efficiently keeping technological developments in mind. An Unified Access Services licensee can provide wireline as well as wireless services in a service area.

How Will Adani Group Disrupt Telecom Arena?

After obtaining the license, the Adani Group will be in direct competition with telecom operators such as Reliance Jio, Airtel, and Vi. However, there is a fair chance for the general public to benefit amidst the competition.

In the past, telecom companies were offering their services at high prices, but the entry of Jio changed the status quo and disrupted the telecom market. Over the years, the telecom operators started charging more in an attempt to increase their ARPU (Average Revenue Per User). With the entry of the Adani Group, we can expect the company to cause another disruption in the telecom sector.