Case:

Inthemid-2022,AdaniDataNetworksLtd,aunitofAdaniEnterprisesLtd,spentRs212croreto buy the right to use 400MHz of spectrum in the 26GHz millimetre wave band in the 5Gairwaves auction for 20 years. The group bought less than 1% of all spectrums sold in theauction and its purchase price was a fraction of Rs 1.5 lakh crore bids that the governmentreceived. On August 27, 2022, commenting on the entry of Adani Group in the 5G spectrum,SunilBhartiMittal,theChairmanofBhartiEnterprises,said,"wewelcome allthecompetitorsto the race". Entire auction process was completed after 40 rounds over seven days. The 5Gairwaves was expected to increase mobile internet speeds 10 times faster than 4G (Table 1).Jio bought frequencies in the super-efficient but costly 700 MHz band as well as those in the1800 MHz band in UP (East). It won 10 MHz of the band in the circle after a bitter fight withAirtel,payingRs 1,646croreandtaking thepricenearly81%higherthan itsbaserate.

The aggression demonstrated by Reliance Jio was the clear giveaway in terms of what toexpect. The Chairman of the Reliance Industries Limited (RIL), Mukesh Ambani, shared hisidea at the AGM meet, "Of the Rs 1.50 lakh crore that the government garnered through theauction of 5G spectrum, Jio's outgo was over Rs 88,000 crore. Now, the gameplan is to cutacross consumer and enterprise solutions with a suite of offerings". One of the market analystpointed out that, "Now the attention will be on how the service will be priced. Overall, it mustbe said that the 5G announcement by Reliance is highly disruptive. Reliance has been knowntobecost-competitiveandthatisunlikelytochange". Meetingthemediaafterthe5G auction,Mr.SunilBharti,expressedhisviews,"IwouldlovetoserveAdani'sneeds.Butifhewantstodo it himself, and not take any assistance from us, I will be fine. But to my mind, we will beservinghisports,airports,andotherindustrialneedsinabetterwaybecauseIfeelwecandoit better". The Adani team said that it will digitally integrate its businesses, link data centres,build globally largest industrial cloud operations, and develop a super app to offer a suite ofservicesacross its 400-million customer base.

On the other hand, the officials he Bharti also said that our company cannot match thecapital strength of the Jio Reliance's dominance in the field. However, they were to give Jiotough competition in terms of technology and services. The telecom sector usually had beenfor those players who had deeper pockets. It was believed that Reliance Jio will always havemuch more capital as they are a larger house. So, that was a limitation for Bharti. Reflectingon the competition, the top officials he Bharti Enterprises pointed out that with 25 years ofserving in the telecom sector, we should be able to face new players even if they are the dominantone.Commenting onthe dynamics, Mittal said,"wemustbebestin class,rest willfollow".

Table1:AuctionNumbers

Company	Spends(RsCrore)	Purchases(MHz)
Jio	88,078	24,740.0
Airtel	43, 084	19, 867.8
Vi	18,799	6,228.4
Adani	212	400.0

Question 1: Analyse the changes in theeconomicsof the telecom industry and its possibleimplicationsforthefuturestrategiesofBhartiEnterpriseswhenthe5Gisfullyoperational.