Adani Data Networks, a subsidiary of Adani Group, has announced its decision to transfer its entire spectrum holdings to Bharti Airtel and its subsidiary, Bharti Hexacom. While both companies issued separate statements regarding this transfer, they did not disclose any financial details. This development comes as Adani Data Networks is on the verge of losing its 400 megahertz spectrum in the 26 GHz band due to its failure to meet the rollout obligations within the required timeframe.
In a statement, Adani Group confirmed, "Adani Data Networks Limited (ADNL), a wholly-owned subsidiary of Adani Enterprises Ltd, has signed definitive agreements with Bharti Airtel Ltd and its subsidiary Bharti Hexacom Ltd to transfer the rights to use 400 MHz of spectrum in the 26 GHz band". The spectrum was originally acquired by Adani Data Networks for approximately Rs 212 crore in an auction held in 2022.
Bharti Airtel elaborated in its own statement that the acquisition will cover 400 MHz of spectrum across several regions, including Gujarat (100 MHz), Mumbai (100 MHz), Andhra Pradesh (50 MHz), Rajasthan (50 MHz), Karnataka (50 MHz), and Tamil Nadu (50 MHz). According to auction rules, companies acquiring spectrum in the 26 GHz band are required to launch commercial services within 12 months of allocation in any telecom circle where they hold the frequencies.
Adani Data Networks is set to complete three years of spectrum allocation by August 2025. By the end of this period, companies holding 26 GHz spectrum must deploy at least 90 sites in each circle where they have the rights to use the radiowaves.
The rules regarding spectrum allocation include a strict penalty structure for those who fail to meet rollout targets. Missing the target incurs a weekly penalty of Rs 1 lakh for the first 13 weeks, which then increases to Rs 2 lakh for the next 13 weeks, and escalates to Rs 4 lakh for the ensuing 26 weeks, with a maximum total fine of Rs 1.40 crore for each phase. Should there be delays exceeding 52 weeks in any phase, not only would the penalties apply, but the allocated spectrum could also be withdrawn, and any bank guarantees will be encashed if the fines are not settled.
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