The $21.7 billion Adani Group has confirmed its entry into the cellular telecom space and will do so with a rollout in 2022. The company is expected to release three new wireless service providers in Australia as part of its planned expansion into the market, making it one of the first Indian firms to enter this area. Mukesh Ambani’s Reliance Jio, Airtel and Vodafone India currently dominate the Indian market. It is also estimated that by 2022 there will be around 500 million mobile users in India.
In a new development, which is seen as a positive move for the telco industry, Indian multinational conglomerate Adani Group has confirmed its entry into the telecom spectrum race. In a note to the bourses, Adani Group said that it is shifting its existing businesses and resources to enter the telecom sector. It further noted that the company is setting up a unit called Adani Teleservices to focus on global business. In addition to this, the group also announced plans to enter Sri Lanka’s telecom market as well.
The company is expected to release three new mobile service providers in Australia as part of its planned expansion into the market, making it one of the first Indian firms to enter this area. Adani Group has been actively scouting for new markets, with a proposal to invest $1 billion in the North American market. The company has also announced plans to invest $10 billion in China and is expanding its existing operations in the United States through acquisitions. Adani Group will focus on building out its network infrastructure as it seeks to expand into new markets quickly.
The Adani Group, which is involved in a mix of projects from the energy, power and logistics sectors, made an official announcement concerning its entry into the Indian market. The statement said has already created a new entity for the telecom business. It also noted that the new entity would be focused on winning licenses in various circles across India as well as close-to-retail service solutions for telecom players. The group, which is already involved in the energy and power sectors, will also take care of its spectrum allocation. Additionally, the group has proposed, to bid to set up a network of towers and mobile networks with licensed players such as Airtel, Vodafone and Idea Cellular.
The statement, however, did not mention any specific timeline. The Adani Group has already set up a greenfield operation in Mundra, Gujarat to cater to the ambitious South-East Asia-Middle East-Western Europe (SEA-ME-WE) Trade corridor, where large volumes of bandwidth are expected.
The Adani Group will look at spectrum assignments, network technology and its business model to enter the telecom sector as it already has a strong presence in the power and infrastructure sector. Earlier this year, the group had declared that it would be investing about $11 billion for an ambitious project to build a dedicated coal-to-liquid shipping facility, 9.4 million tons per annum (mtpa) of export capacity from its Mundra port.
According to analysts, the Adani Group has already been in talks with the Department of Telecommunications (DoT) for setting up a telecom company. The group, which is currently focusing on its infrastructure businesses, has expressed its intent to bid for spectrum through a wholly-owned subsidiary. Sources have also indicated that the conglomerate has expressed interest in bidding for a spectrum in at least five circles. The new development could be seen as a departure from its past partnering with incumbents and acquiring under-serviced or poorly serviced networks.
Adani Group to join 5G Spectrum’s Hot Race.
With the telecom sector witnessing a flurry of consolidation recently, Indian conglomerate Adani Group has made it clear that it is planning to bid for a 5G spectrum. According to sources within the company, Adani Group will bid for a 5G spectrum in at least three circles where the telecom sector has recently been witnessing significant consolidation.
The company had also expressed interest in spectrum in 3G spectrum in 2015, but the government had ruled out the proposal in its 2015-2036 plan. Billionaire Adani Group has kept on expanding its business portfolio and that too across industries. Besides, the group has entered other sectors such as road construction and technology.
The group already looks to be attempting a local and foreign tie-up with some of the leading telecom operators in India. Quadrant Televentures managing director Sanjeev Aggarwal said, “We have tied up with Adani and will bid for 5G spectrum in three circles. The company has been retailing MTS products and services in Gujarat, Madhya Pradesh and Chhattisgarh. They are looking at starting 5G services.
Adani Group joins hands with Bharti Airtel to bid for 5G spectrum.
According to the latest reports, it looks like Adani Group is eyeing a company called Bharti Airtel. Sources have said that Bharti Airtel and Adani Group have already been in talks and are setting up a joint venture to win the 5G spectrum. The group is expected to bid for a 5G spectrum through its wholly-owned subsidiary.
The group, which is already involved in the energy and power sectors, will also take care of its spectrum allocation. Additionally, the group has proposed to bid for setting up a network of towers and mobile networks with licensed players such as Bharti Airtel, Vodafone and Idea Cellular.
The move is being seen as a significant step as the conglomerate has till now been partnering with telecom players to acquire spectrum. The company had till recently been eyeing a stake in Reliance Jio, but the two entities could not reach an agreement.
The move is also seen as a step towards consolidation within the telecom space. The company has been looking at a stake in Reliance Jio, but the companies could not reach an agreement, so it decided to enter this market in other ways. Earlier, Adani Group had also expressed interest in buying out the tower business of Reliance Infratel. Jio has been a firm competitor and also a strong companion as well. The companies have been working together for several years now.
The Adani Group has interests in refineries, oil and gas pipelines, coal mining and terminals, LNG terminals and power generation besides shipping. Its presence is also visible in financial services & telecom, real estate and renewable energy. The conglomerate has also been in talks with DoT to set up a telecom venture for a long, but the plane was shot down as the government had ruled out any further consolidation in the sector.
Adani, RIL in talks for Jio stake
Despite the possible entry of Reliance Jio into the telecom sector, Anil Ambani-led Reliance Communications (RCom) and Mukesh Ambani- led Reliance Industries (RIL) are in talks for a possible tie-up. The discussions are at an advanced stage, with both parties working on the contours of a deal.
The possible spin-off of RIL’s entertainment business into a separate listed entity would also be on the agenda. The two companies have been in talks since last year, but both sides are yet to agree. Mukesh Ambani wants majority control and boardroom representation, while RCom is looking at offloading non-core businesses.
Adani, to use the 5G spectrum for all its private businesses, will not enter consumer mobility.
In a bid to separate itself from Reliance Jio Infocomm, Adani Group has said that it will use 5G range solely for its private businesses and will not venture into the consumer mobility segment. The group had expressed its interest in acquiring spectrum in five circles Gujarat, Tamil Nadu, Maharashtra, Karnataka and Andhra Pradesh.
Adani Tel to offer fibre-to-the-home (FTTH) broadband service in Karnataka and Maharashtra by the end of this year, 2022. In a move that is being seen as significant, Adani Group’s telecom subsidiary Adani Teleservices has said that it will be offering FTTH broadband services in Karnataka and Maharashtra by the end of this year and also plans to provide the same across 16 other states through pan India optic fibre network.
Adani Law and Consultants Private Limited (ALCCPL) is a law firm that provides legal advice to the Adani Group’s various businesses, including Adani Enterprises and its a subsidiary company. Since 2001, ALCCPL has successfully assisted the group in all its legal matters. Adani Law & Consultants has a highly efficient and professional practice across all sectors, including banking and finance, trading, mining, power station and government relations.
Adani Law & Consultants Private Limited is one of the leading law firms in India. This firm provides legal services to the Adani Group’s various businesses, including Adani Enterprises and its subsidiary companies. It also provides legal services for other clients, such as the Kochi-Muziris Biennale Foundation, a not-for-profit enterprise engaged in promoting art and culture in Kerala.
Adani Group confirms 5G auction participation for captive network solutions.
In a significant development, Adani Group has confirmed its participation in the 5G spectrum auction for providing captive network solutions to mobile operators. The group will work on standardised and interoperable solutions for multiple operators to lock in customers from the start. The company’s move is significant as it will bring down costs associated with setting up a national 5G network and provide end-to-end solutions for mobile networks across different companies.
The company is committed to its 5G strategy, planning to work on interoperable solutions for multiple operators, to lock in customers from the start. Adani Group joins hands with Ericsson to provide technical solutions for upcoming 5G auctions. Adani Group’s entry into the 5G market comes when global telecom companies are revamping their strategies to sustain the business in the upcoming auction.
In 2009-10, the total income of Adani Group touched Rs. 36,771 crores with a profit of over Rs. 5,000 crores. In 2010-11, Adani Enterprises saw its profits increase by 32 per cent to ₹5,160 crores from ₹3,715 crores in 2009-10 with a turnover of ₹41,674 crores against ₹36,771 crores in the previous fiscal.
In 2011-12, Adani Group’s profits rose by 40% to Rs.6,000 crores and sales turnover increased by 43% to Rs.56,000 crores. In 2012-13, the group’s net profit rose 49% to Rs. 6,982 crores, with a turnover of Rs. 64,744 crores compared to ₹3,166 crores, and ₹43,911 crores in the previous fiscal respectively.
Adani partners with IBM for 5G IoT Strategy.
Adani Group has partnered with IBM in its Internet of Things (IoT) strategy. The two companies have said that they will leverage Adani’s network footprint to accelerate the areas of digital banking, smart cities and the retail sector. The partnership will address areas like energy and transportation, developing a roadmap for the future of the two industries.
Adani Electronics and IT Services Limited is a public sector undertaking of the Adani Group under the Ministry of Power. Formerly known as EPIL, the company has combined the expertise of various government ministries to offers services across industries. The company provides services like ICT for Intra-departmental communication, email and VPN solutions, disaster management solutions and enterprise resource planning (ERP) solutions.
Adani Group sets up a new captive network solution unit.
In a move that is being seen as significant, Adani Group has established a new captive network solution subsidiary. The company has indicated its intention to bid for a 5G spectrum through the new entity. The fashion in which Adani Group has structured the entity is aimed at making it clear that the entity will be working on standardised and interoperable solutions for multiple operators, to lock in customers from the start.
Adani Enterprises is India’s largest private sector electricity producer by net power capacity, trading over 4.2 billion units per annum and producing nearly 10,000 MW of thermal electricity. The Group holds degrees of over 1,845 MW of installed capacity through its operating and under-construction plants in Odisha, Chhattisgarh, Tamil Nadu, Gujarat and Maharashtra.
Adani confirms entry into telecom spectrum race; to use 5G spectrum for private network.
Adani Group confirmed its entry into the telecom spectrum race by announcing that the company will participate in the 5G auction in 2022 and is also exploring bidding for the 5G spectrum in other countries. The group will work on standardised and interoperable solutions for multiple operators, to lock in customers from the start.
The company has confirmed its plan to explore opportunities in DTH services and also works to set up a network in tier II, III and IV cities. Adani Group has been working on digital marketing solutions with the objective to create an effective marketing platform for the group.
Adani Enterprises Limited – a member of the Adani Group, is a multi-dimensional company with businesses in ports, coal mining and trading, oil & gas (integrated energy solutions), renewable energy and power. From its headquarters in Ahmedabad, India, the Adani Group operates globally, including in Port and Logistics (through Adani Ports & Special Economic Zone Limited in India) and Mining (through Adani Mining Pty Ltd. in Australia).
Adani Group has diversified its business interests into many entrepreneurial ventures including the development of Special Economic Zones (SEZs), logistics, education, and other social development activities. The Adani Foundation is a philanthropic foundation within the Adani Group founded by Gautam Adani in 2011.
The Foundation focuses on the core humanitarian goals of education, health, poverty alleviation and micro-finance. In September 2007, the Adani group purchased the Mumbai Port Trust (MbPT), the most significant port authority in India and one of the largest ports in Asia, for US$1.04 billion. The purchase included a 76 per cent stake (16.35 billion USD) owned by Port Samudra Holding BV and a 16 per cent stake (2.21 billion USD) owned by Caledonian Maritime Assets Ltd.
Conclusion
The Adani Group has been one of the most influential and fastest-growing business empires in India. It employs a staggering 40,000 people, directly and indirectly, across different companies. The group owns mines, power plants and special economic zones that contribute substantially to the Indian economy.
The company continues to work on its 5G strategy with a view to provide advanced network solutions for multiple operators. The company is currently aiming at developing an effective marketing platform for the group as it works at gaining traction in the telecom sector as well. With a worldwide presence in the form of offices in key cities like Singapore and Dubai, the company remains poised to make a more substantial presence in the global market. The company has diversified into many other ventures, covering green initiatives and philanthropic activities.
The Adani Group is headed by its chairman, Gautam Adani. The group is run by his younger brother, Rajesh Kumar Maini, as the managing director. The Adani Group has diversified into other ventures it is working to create an effective marketing platform for the group as it works at gaining traction in the telecom sector as well. With a worldwide presence in the form of offices in key cities like Singapore and Dubai, the company remains poised to make a more substantial presence in the global market.
edited and proofread by nikita sharma
