Should Mukesh Ambani Fear Gautam Adani’s Entry Into Telecom Sector With 5G Auction | #cybersecurity | #cyberattack

With Adani Group’s surprise entry into the coveted 5G spectrum auction, Gautam Adani will be in direct competition with Mukesh Ambani as they later this month take part in the auction of airwaves able to provide fifth-generation (5G) telecom services. However, the competition between the two billionaire Gujarati businessmen will not yet be seen as a full-fledged market clash regardless of overlaps. Reliance Jio holds the maximum market share in the Indian telecom industry. The other two relevant players are Sunil Bharti-led Airtel and Kumar Mangalam Birla-owned Vodafone Idea Limited.

The 5G spectrum auctions are slated to begin on July 26. Gautam Adani, who has been on the lookout to expand Adani Group’s portfolio across sectors, is eying a foray into the telecom sector. 

The Department of Telecommunications (DoT) last month received the auction bids from Reliance Industries, Bharti Airtel and Vodafone Idea Limited. The auction is held for 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 3300- 3670 MHz and 26 GHz frequency bands, with a license period of 20 years, as recommended by the Telecom Regulatory Authority of India (TRAI).  

Notably, the 5G services are likely to be rolled out by mid-2023 next year.  

What Are Gautam Adani’s Plans For 5G Spectrum?

If Adani Group wins the bid for the 5G spectrum, the company will not enter into the consumer mobility space unlike Reliance and other telecom players but will utilise the 5G technology for enterprise services 

While the telcos provide solutions for cybersecurity, big data and data centres through enterprise services, the consumer mobility space caters to providing telecom services such as broadband, wifi and mobile recharge, amongst others. 

The bid is likely to help the Adani Group capture the market of data technology–which is fast growing in India. As per a report by Fortune Business Insights, the global big data technology market size is projected to reach $116.07 billion by 2027, at a CAGR of 14 per cent in the forecast period. 

“We have received a lot of inquiries about our interest in the 5G space. Our intention is not to be in the consumer mobility space. As we build our own digital platform encompassing super apps, edge data centres, and industry command and control centres, we will need ultra high-quality data streaming capabilities through a high frequency and low latency 5G network across all our businesses,” Adani Group said in a statement. 

“We are participating in the 5G spectrum auction to provide private network solutions along with enhanced cyber security in the airport, ports & logistics, power generation, transmission, distribution, and various manufacturing operations,” it added.

Notably, the Adani Group, with its valuation of Rs 66,000 crore, has its subsidiaries spread across the transmission, and ports such as Adani Transmission, Adani Green Energy, and Adani Ports amongst others. 

Meanwhile, the 5G spectrum bid will also help the company fetch investments for Adani Foundation. “If we are awarded 5G spectrum in the open bidding, it will also align with our recent announcement of significantly increasing the Adani Foundation’s investments in Education, Healthcare and Skill Development in rural areas, each of which stands to benefit from 5G technology,” the company said. 

Reliance’s Plan For 5G Spectrum

While Adani Group plans to capture the big data technology market, Reliance Jio has been bullish on providing the 5G services. Mukesh Ambani (Looks incomplete, pls revisit)the company’s patriarch, last year termed 5G technology a “national priority.” 

The magnitude of the company’s plans to spearhead the 5G revolution can be understood from the fact that Reliance Jio became the first telecom operator to launch 5G trials in Mumbai, Delhi, and Hyderabad in June last year. The company also successfully conducted a trial on connected drones on its indigenous 5G network. Apart from this, the company is also going to launch a JioPhone 5G by the end of this year. The smartphone is said to be the 5G phone in India, at a price of around Rs 10,000.  

Meanwhile, unlike its peers, Reliance Jio is the only telco to pay the adjusted gross revenue (AGR) dues before the moratorium period.

Importance of 5G Spectrum in India

According to a report by Qualcomm, by 2035, the 5G technology is estimated to have a market valuation of $13.1 trillion and will create jobs worth $22.8 million. Several countries like South Korea, France, Germany, the USA, and China have been exploring space for years now, setting up the stage for the early adoption of 5G. 

Despite lagging behind the aforementioned countries, India is gearing up to launch 5G technology to join its peer nations. According to a report by Ericsson, by 2027 as many as 40 per cent of Indian subscribers will be on 5G networks, and almost 56 per cent of total mobile traffic in India will be carried by 5G networks. 

The 5G spectrum auction is likely to fetch the government a whopping Rs 80,000 crore to Rs 100,000 crore. 

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