Adani gets out of telecom, transfers entire spectrum to Airtel

Adani Data Networks Ltd (ADNL), the telecom spinout of Gautam Adani-led Adani Enterprises Ltd, has said it will transfer the rights to use 400 MHz of its spectrum in the 26 GHz band to Bharti Airtel Ltd and its subsidiary, Bharti Hexacom, as the rollout deadline approaches in August.

The move will allow ADNL to avoid regulatory penalties and enable Airtel to strengthen its 5G infrastructure by acquiring the unused spectrum.

Adani Data Networks acquired the spectrum in 2022, and it was nearing the end of its three-year rollout target in August 2025.

The telecom company paid about ₹212 crore in the 5G spectrum auction and had made an upfront payment of about ₹18.9 crore, while agreeing to pay the balance amount over 20 years.

Both the companies told the exchanges separately that they signed definitive agreements to transfer the rights to use 400 MHz spectrum in Gujarat, Mumbai, Rajasthan, Karnataka, and Tamil Nadu in the 26 GHz band.  The financial details of this transaction were not disclosed.

The development marks ADNL’s exit from the highly competitive and capital-intensive telecom market.

Adani Group informed the exchanges that the spectrum covers six telecom circles: 100 MHz in Gujarat and Mumbai, respectively, and 50 MHz in Rajasthan, Karnataka, and Tamil Nadu.

The closing of this transaction is subject to customary statutory approvals.

Unlike, ADNL, Airtel is a global communications solutions provider boasting about 550 million customers in 15 countries, including India. The company also has a presence in Bangladesh and Sri Lanka through its associate entities.

Airtel’s retail portfolio includes high-speed 4G/5G mobile broadband and Airtel Xstream Fiber that promises speeds up to 1 Gbps with streaming services spanning music and video, digital payments, and financial services.

For failing to meet the rollout deadline, telecom companies may face penalties of ₹1 lakh per week for the first 13 weeks, followed by ₹2 lakh per week for the next 13 weeks. If the fines are not settled, the Department of Telecommunications (DoT) can withdraw the allocated spectrum and encash any bank guarantees.