The company had earlier issued a letter of intent for a consolidated license. Now, its network is qualified to carry long distance calls and provide internet services. It helps the company in data center business where data needs to be transferred in and out of the country.
Adani Group has to use services of telecom operators to transfer data for which carriage charges are payable in absence of such licence. Notably, the company had earlier said it had no intention of offering retail telecom services and had purchased 5G spectrum to set up its private 5G network. It is not yet known whether it has changed plans or acquired the license to cut costs.
Adani Data Network will acquire a consolidated license
Adani Data Networks has received a unified license from the Department of Telecommunications in six circles. It is qualified to carry long distance calls and provide Internet services to its network. The long distance license creates a revenue stream for the Adani Group as it carries data as well as voice traffic for telcos and other entities.
“We are participating in 5G spectrum auction to provide private network solutions along with enhanced cyber security in airport, ports & logistics, power generation, transmission, distribution and various manufacturing activities.The company said.
Adani Data acquired 400MHz spectrum in 26GHz band for Rs 212 crore. The company has 100MHz of 5G spectrum each in Gujarat and Mumbai and 50 MHz each in Andhra Pradesh, Rajasthan, Karnataka and Tamil Nadu. Although the company has said it will not offer retail 5G services, some industry experts say that even if the company moves forward with its plans, no one can stop it from offering consumer mobility services.
What is a Unitary License?
The New Telecom Policy (1999) recognizes that the convergence of markets and technologies is a reality that will force the reinvention of the industry. The telephone and broadcast industries are entering each other’s markets, but technology is blurring the distinction between different carrier systems, such as wireline and wireless. Accordingly and in line with technological and market developments, the Authority intends to introduce a unified licensing system in India. It builds economies of scale and scope and increases competition and, as a result, better services at lower prices to consumers.
The main objective of the unified licensing regime is to encourage the free growth of new applications and services based on technological developments in the Information and Communication Technology (ICT) area. Unified licensing procedures to simplify
Licensing mechanism in the telecom sector and ensuring flexibility and efficient utilization of resources keeping in view the technological developments.