Bharti Airtel to acquire 400 MHz spectrum in 26 GHz band from THIS Adani group company

Bharti Airtel, India's second-largest telecom provider, informed investors through an exchange filing today, April 22 that it, along with its subsidiary Bharti Hexacom Limited, has entered into definitive agreements with Adani Data Networks Limited (ADNL), a subsidiary of Adani Enterprises, to acquire the rights to use 400 MHz of spectrum in the 26 GHz band.

"Bharti Airtel Limited and its subsidiary, Bharti Hexacom Limited have entered into definitive agreements with Adani Data Networks Limited (ADNL), a subsidiary of Adani Enterprises to acquire rights to use of 400 MHz of spectrum in the 26 GHz band in Gujarat (100 MHz), Mumbai (100 MHz), Andhra Pradesh (50 MHz), Rajasthan (50 MHz), Karnataka (50 MHz) and Tamil Nadu (50 MHz)," the company said in today's regulatory filing.

This proposed acquisition is a strategic move for Bharti Airtel, aiming to expand its capacity and enhance its network offerings in these critical areas. The 26 GHz band, a part of the millimetre-wave spectrum, is pivotal for high-speed data transmission, especially for the growing demand for 5G services.

The closing of the transaction is subject to standard conditions and regulatory approvals. The financial terms of the deal have not been disclosed. 

Adani Data Networks secured the rights to use 400 MHz of spectrum in the 26 GHz millimetre wave band during India's first 5G spectrum auction, which concluded on August 1, 2022. The company acquired these rights to use the airwaves for its data centers as well as its super app, supporting businesses ranging from electricity distribution to airports.

However, the company failed to roll out 5G telecom services more than two years after receiving a unified telecom licence. According to a report by Moneycontrol, the government has issued multiple notices to Adani Data Networks regarding its non-compliance with minimum rollout obligations (MRO) for 5G services.

Adani has also reportedly paid the required spectrum dues and penalties for failing to meet rollout requirements. Under auction rules, telecom operators must commence commercial services in their licensed areas within a year.

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