Race To 5G Auction Becomes More Interesting With Gautam Adani Joining The Bidders
With Gautam Adani joining the bidders for the fifth-generation airwaves in India, the battle for supremacy in the digital space has become more interesting. While Mukesh Ambani-led Jio Infocomm Ltd. is seen as the highest bidder, analysts say that Adani’s entry into the telecommunication sphere could raise the bar for others.
• The Modi government is expected to raise 1.1 trillion rupees from the sale of fifth-generation airwaves
• Ambani and Adani are among the prominent bidders for the airwaves
• Adani doesn’t plan to enter the consumer mobile space presently dominated by Ambani
What Is Offered In 5G Sale?
The government has offered 72 gigahertz of airwaves in various frequency bands ranging from 600 megahertz to 26 gigahertz. The airwaves are offered for 20 years. Also, the bidders are allowed to pay the total amount in 20 equal installments with no upfront payment. A local rating company ICRA Ltd. has put the figure for the airwaves sale at 1.1 trillion rupees ($14 billion).
How Much The Bidders Have Deposited For The Auction?
Mukesh Ambani deposited the highest amount 140 billion rupees followed by Bharti Airtel’s 55 billion rupees and Vodafone Idea’s 22 billion rupees. Adani Data paid only 1 billion rupees. Adani’s modest bidding has surprised the experts and stirred speculation about his plans.
Why Did Adani Data Pay The Smallest Bidding Amount?
Gautam Adani needs airwaves only to create a private 5G network and not to become a full-service wireless operator like others. But experts see it as Adani’s entry into the sectors traditionally associated with Mukesh Ambani.
How Would The Auction Help India?
The 5G auction is seen as a great financial boost for the Modi government which is already battling inflation and struggling to rein in the fiscal deficit. The auction will be held on Tuesday.