Telcos may feel heat of Adani Group's entry into 5G spectrum auctions

Airtel stock fell over 5%, while RIL closed 1.3% higher after being down for most of the day

The surprise entry of Adani Group into 5G spectrum auctions changes the dynamics of the telecommunications (telecom) sector. A media statement says Adani Group does not intend to enter consumer mobility services.
 
Adani Group says it will use 5G spectrum to provide private network solutions and enhanced cybersecurity at airports, ports and logistics, power generation, transmission, distribution, and manufacturing operations.
 
Nevertheless, the news is negative for incumbent telecom service providers (telcos). It increases competition in the July 5G auctions, which may mean higher spectrum prices. It shrinks the potential markets for telcos, which were targeting the high-value enterprise