Mega Deal! Bharti Airtel Acquires 400 MHz 5G Spectrum from Adani Data Networks in Rs 155 Crore Deal

The Indian telecom major Bharti Airtel on Tuesday announced the acquisition of 400 MHz of high-frequency 5G spectrum from Adani Data Networks. The deal spans six strategic telecom circles, including Gujarat, Mumbai, and Andhra Pradesh, and marks a rare collaboration between two of India's most influential business conglomerates. With this acquisition, Airtel significantly enhances its 5G spectrum footprint, while Adani's exit from this slice of the telecom space signals a strategic realignment of its digital infrastructure focus.

"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 company said in an official statement.

Bharti Airtel in an official announcement, clarified that the transaction will cover 400 MHz of spectrum across multiple regions, including Tamil Nadu (50 MHz), Karnataka (50 MHz), Andhra Pradesh (50 MHz), Rajasthan (50 MHz), Gujarat (100 MHz), and Mumbai (100 MHz). As per auction regulations, companies that acquire spectrum in the 26 GHz band are required to commence commercial services within one year of allocation in any telecom circle where they hold the spectrum.

Adani Data Networks, a subsidiary of Adani Group is approaching the three-year mark of its 26 GHz spectrum allocation, set to complete in August 2025. As per regulatory requirements, companies holding spectrum in this high-frequency band must deploy a minimum of 90 telecom sites in each telecom circle where they own the rights to use the radiowaves. This rule ensures that spectrum is actively used for commercial services rather than being held without deployment.

Initially, the Adani company bought the spectrum with the determined aim of creating private captive networks for its enterprise operations in the energy, ports, airports, and logistics sectors.

Financial Details of Airtel-Adani Spectrum Deal: Report

While both the companies have not officially disclosed the financial terms of the agreement, industry sources estimate the deal to be worth around Rs 155 crore, as cited in the report of Financial Express.

According to the Department of Telecommunications (DoT)'s spectrum selling regulations, the acquiring entity is responsible for paying the remaining government obligations associated with the spectrum.

In the July 2022 auctions, Adani Data Networks paid Rs 212 crore for the spectrum, with Rs 18.9 crore paid up front and the remaining amount to be paid over 20 years. It is estimated that it has paid roughly Rs 55 crore, excluding the penalties for inability to meet rollout requirements.

Bharti Airtel Shares in Focus Amid Spectrum Deal With Adani Group

At 10:49 AM, Bharti Hexacom's share price was Rs 1,661.90, up by Rs 20.40 or 1.24%. The company's shares went up and reached their highest price in a year at Rs 1,689.9 in the early trading session on Wednesday. Bharti Airtel shares stayed flat after touching their highest price of Rs 1,904 on April 21.

Airtel is quickly expanding its 5G network and adding more users. By December-end, about 120 million people out of its 414 million customers were using Airtel's 5G services.