Bharti Airtel shares fell nearly 5% in early trading on July 11 following reports that Adani Group may enter the telecom space, potentially causing another round of market disruption.
An Adani Group entity has entered the race to acquire 5G telecom spectrum, joining Mukesh Ambani’s Reliance Jio, Sunil Bharti Mittal’s Airtel, and Vodafone-Birla Group joint venture Vi.
Adani Group, on the other hand, clarified in a statement that its intention to acquire 5G spectrum is to provide a private network for airports and its ports business, not to provide mass telecom services.
Nonetheless, alarm bells rang on Dalal Street as investors worried that the entry of another deep-pocketed player in the industry would be detrimental to existing players.
Bharti Airtel was down 4.53 percent to Rs 663.75 on the BSE at 9:37 a.m. Jio’s parent company, Reliance Industries, fell 0.3 percent to Rs 2383.95. Vodafone Idea, on the other hand, was only marginally affected, trading with marginal gains at Rs 8.46.
The government is selling 72 Ghz of 5G frequencies for up to Rs 4.5 lakh crore at base prices. The airwaves will be auctioned off for 20 years in ten bands ranging from 600 Mhz to 26 Ghz at prices set by the telecom regulator.
Airtel, Jio, Vodafone Idea, and Adani Group have all submitted applications to participate in India’s first 5G airwave auction, which will take place on July 26.
Previously, it was expected that the bidding war would be quiet; however, Adani’s entry into the fray has changed the situation. It may result in increased competition, and telcos may have to pay more to acquire spectrum now.