Adani Data Network has decided to transfer all of its spectrum holdings to Bharti Airtel and its subsidiary, Bharti Hexacom. Both companies confirmed the deal on Tuesday, but did not disclose the financial details.

This marks Adani Group’s exit from the telecom spectrum business, just three years after they acquired the airwaves in a government auction. The move comes at a time when Adani Data Network was in danger of losing its entire 400 MHz spectrum in the 26 GHz band due to not meeting its rollout requirements. In 2022, Adani Data Networks bought 400 MHz of spectrum for about Rs 212 crore during the 5G spectrum auction. According to the auction rules, any company that gets spectrum in the 26 GHz band must start commercial services within 12 months in at least one location in every telecom circle where they own the spectrum.

“Adani Data Networks Limited (ADNL), a wholly-owned subsidiary of Adani Enterprises Ltd, has signed definitive agreements with Bharti Airtel Ltd and its subsidiary Bharti Hexacom Ltd to transfer the rights to use 400 MHz of spectrum in the 26 GHz band,” read a statement from Adani Group. Bharti Airtel confirmed the agreement in a statement as well.

“Bharti Airtel Limited and its subsidiary Bharti Hexacom Limited have entered into definitive agreements with Adani Data Networks Limited to acquire rights to use 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),” Airtel said. By August 2025, Adani Data Networks will have completed three years since receiving its spectrum allocation. According to government regulations, by the end of the third year, companies holding spectrum in the 26 GHz band must have at least 90 active network sites in every circle where they have the spectrum.

If they fail to meet this requirement, they will face financial penalties. The penalty starts at Rs 1 lakh per week for the first 13 weeks after the deadline. For the next 13 weeks, the fine increases to Rs 2 lakh per week, and after that, it goes up to Rs 4 lakh per week for the following 26 weeks. However, the total fine in each of these three phases is limited to Rs 1.40 crore. If the delay goes on for more than 52 weeks, the government can take back the spectrum, and it can also use any bank guarantees submitted during the auction to recover the unpaid penalties.