Vodafone Idea gains 3.44% after Adani Group announces intention to acquire 5G spectrum
Vodafone Idea gains 3.44% after Adani Group announces intention to acquire 5G spectrum
Shares of Bharti Airtel fell 5.03% to Rs 660.30 on the BSE, while Vodafone Idea rose 3.44% to Rs 8.72. The Adani Group on Saturday announced that it will bid for spectrum in the 5G auction.
Shares of Adani Enterprises Limited, the holding of the Adani Group, also rose 3.42% to Rs 2,371.
The Adani Group had clarified that it would not enter the consumer mobility space, but its bid for 5G spectrum auction would be in airports, ports and logistics, power generation, transmission, distribution and private network solutions with enhanced cyber security in various sectors. will have to provide. construction works.
Deven Choksey, MD, KR Choksey Shares & Securities Pvt Ltd said, “In my view, when Adani bids for 5G airwaves, it will be aimed primarily at captive use and the aim is to strengthen the group’s communication requirement. Have to do it.” “They would not be interested in entering the public telecommunications business.”
“The best synergy one can imagine is to launch 5G to complement their data center business. With cloud computing, AI, VR and MR offerings, a data center business can act as a driver to provide services to its own group business in addition to connecting group customers, suppliers and other service providers on a captive network .
In public networks, because bandwidth is shared among many other users and this may result in non-exclusivity or non-priority of services, this could affect the business case of a large user base such as the Adani Group, he pointed out.
“Adani Group is one such conglomerate that plays a vital role in infrastructure business on one hand and consumer businesses on the other. A captive 5G network can help them optimize their service offerings,” he said.