Strategic Exit Reflects Adani Group’s Focus Shift Away from Telecom
Adani Data Networks’ decision to offload its 26 GHz 5G spectrum to Bharti Airtel marks a pivotal shift in the group’s strategy, signaling a clear exit from direct telecom ambitions less than three years after entering the sector. Bharti Airtel and its regional arm Bharti Hexacom confirmed on April 23 that they have signed definitive agreements to acquire 400 MHz of 26 GHz spectrum from Adani Enterprises-owned Adani Data Networks.
This spectrum transaction, industry experts say, not only relieves Adani from operational liabilities and regulatory pressure but also validates that telecom was never a strategic cornerstone for the conglomerate. According to Ashwinder Sethi, Partner at Analysys Mason, Adani had originally bought the spectrum to deploy private 5G networks across industrial assets like ports, logistics hubs, and power plants. However, implementing and managing such networks proved to be more technologically challenging and commercially unsound than expected.
Highlights:
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Adani Data Networks sells 400 MHz in 26 GHz band to Airtel.
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Marks Adani’s exit from direct telecom spectrum ownership.
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Telecom never viewed as a core business by the conglomerate.
Regulatory Relief and Financial Efficiency Behind Spectrum Exit
The spectrum handover has helped Adani offload both financial obligations and regulatory liabilities, particularly those linked to rollout obligations mandated by the Department of Telecommunications (DoT). Under current DoT guidelines, license holders must commercially launch services in at least one service area per circle within the first year of spectrum acquisition. Adani failed to meet these conditions, leading to penalties and multiple clarification requests from the DoT throughout 2024.
Industry sources revealed that the group had previously paid Rs 57 crore toward the total Rs 212 crore it had committed in the 2022 auctions. With the transfer now in place, Airtel will shoulder the remaining Rs 150+ crore obligation to the government, excluding any accrued interest. This agreement provides regulatory cover to Adani while allowing Airtel to bolster its millimeter wave (mmWave) spectrum portfolio for enterprise 5G solutions and network slicing use cases.
Highlights:
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Adani avoids DoT penalties and compliance issues through sale.
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Airtel to pay remaining Rs 150 crore+ to DoT in spectrum dues.
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Regulatory exit allows Adani to avoid further rollout liability.
Telecom Sector Proves Capital Intensive and Technologically Complex
While Adani entered the 5G auction with high expectations, betting on private network monetization for its industrial ecosystem, the reality of deploying and managing standalone 5G systems proved significantly more complex. Analysts argue that non-telco players often lack the technical depth required to implement and maintain 5G networks, particularly those operating in mmWave frequencies, which have shorter range and require high network density.
One telecom analyst, who requested anonymity, emphasized the capital-intensive nature of the industry, combined with hyper-competitive dynamics in India’s telecom market, as key reasons behind Adani’s pullback. Unlike telecom incumbents, Adani lacked a commercial customer base, telecom-grade operations team, and monetization channels, all of which are critical for long-term success in the sector.
Highlights:
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Private 5G deployment is technically demanding and cost-heavy.
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Adani faced operational gaps in network management and monetization.
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Competitive pressures and weak ROI projections drove exit.
Adani Retains Future Option via Network Leasing and Slicing
Despite relinquishing spectrum rights, Adani has not completely shut the door on its private telecom ambitions. Analysts believe that the group could still engage with telecom operators such as Airtel or Jio in the future by exploring network leasing or spectrum slicing agreements. These options would allow Adani to deploy 5G-powered use cases at its industrial assets without owning spectrum or investing in core telecom infrastructure.
This strategy aligns with global trends where large enterprises partner with telecom service providers to access customized private networks for their logistics, automation, and IoT-driven operations. Such an approach enables corporations to focus on core business operations while leveraging telecom infrastructure on a pay-as-you-go basis.
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Adani may explore 5G partnerships via network leasing.
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Future collaboration with telcos for industrial IoT and automation.
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Spectrum slicing offers flexibility without ownership burdens.
Lack of Commercial Use Case and Device Ecosystem Undermined Plans
Initially, Adani’s spectrum acquisition was presented as a forward-looking move aimed at integrating next-generation connectivity into its industrial infrastructure. But over time, a combination of unclear commercial use cases, slow device ecosystem development, and delayed regulatory clarifications made the model financially unviable. Despite holding a unified telecom license, Adani Data Networks was unable to launch services in any licensed circle.
The company reportedly communicated its challenges to the DoT earlier this year and signaled intent to either surrender or trade the unused spectrum, as per a Moneycontrol report dated January 15. This week’s agreement with Airtel formalizes that intent and positions the telecom major to immediately operationalize the 26 GHz spectrum for enterprise and industrial 5G rollouts.
Highlights:
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Absence of viable use cases and device ecosystems impeded execution.
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Unified license held but no services launched, triggering DoT notices.
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Adani had flagged intent to surrender or trade spectrum in early 2025.
