Vodafone Idea (Vi) and Bharat Sanchar Nigam Limited (BSNL) are in the process of expanding the existing network sharing arrangement to telecom circles throughout India, and discussions are going on about extending the partnership beyond Delhi and Mumbai. There will be discussions around mobile roaming and tower infrastructure and optical fibre; network sharing and network integration between the two operators will be among the areas which may be included in the larger agreement.
The expansion is also at a crucial stage for both companies. Vodafone Idea is still struggling with financial and competitive pressures in India's telecom market, while BSNL is working on its mobile network to strengthen (now that it’s launched its indigenous 4G infrastructure) and to accelerate the expansion of 5G services. Network infrastructure and network resources would allow both operators to build coverage without having to replicate expensive telecom assets in every region.
According to the revenue-sharing arrangement, BSNL has leased around 1,441 towers to Vodafone Idea. This provides Vi with additional infrastructure and BSNL generates revenue from assets deployed across its network. Expanding such partnerships to other circles would give both companies even more business opportunities.
The proposed nationwide partnership could also come with roaming. It would be particularly important in areas where one operator has greater network coverage than the other. BSNL customers might have access to Vi's stronger urban and 4G/5G network presence in some places where BSNL and Vi subscribers have the infrastructure and reach to reach in areas where the state-owned operator has a greater presence.
The talks also fit into a larger push to explore cooperation between the two telecom companies in emerging technologies and digital infrastructure. In recent talks with the Department of Telecommunications, 4G and 5G networks, data centres, artificial intelligence and cloud services have been among the areas of interest. And such cooperation could eventually go beyond tower and spectrum-related arrangements and create opportunities for shared digital infrastructure.
Vodafone Idea’s increased access to BSNL infrastructure would certainly reduce the costs of network expansion at a time when the company is balancing capital expenditure. The operator has been looking at how to upgrade its network for better quality and to be able to compete better with market leaders Reliance Jio and Bharti Airtel. An infrastructure sharing arrangement would enable Vi to bring up coverage in areas where investment is more expensive.
BSNL can also benefit from better access to networks in cities and other places where Vodafone Idea has established itself. The state-owned operator is slowly modernising its mobile network, including the deployment of indigenous 4G technology. Network sharing agreements could complement the company’s own infrastructure as it progresses towards larger 5G services.
The proposed arrangement could therefore provide advantages to the customers of both companies. Better roaming access, shared towers and wider fibre connectivity could potentially enhance network availability and reduce coverage gaps. But the terms, commercial structure and technical scope of any nationwide agreement will depend on the talks between the two companies as well as regulatory considerations.
The telecom market in India is becoming more competitive and Reliance Jio and Bharti Airtel are leading in subscribers and network deployment. Collaboration between Vi and BSNL could help them to better equip their existing infrastructure and compete better. And rather than treating network expansion as a single investment piece, the two operators can leverage each other's complementary assets and increase the penetration of customers.
If implemented, a nationwide network-sharing agreement between Vodafone Idea and BSNL would be a major step towards an integration between them. And it could also signal a more general direction towards infrastructure collaboration in India’s telecom industry where operators are increasingly looking for cost-efficient ways to increase coverage and support next-generation digital services.
And the biggest benefit for consumers would be increased connectivity. If the proposed expansion extends the roaming, better access to towers and better optical-fibre networks, BSNL and Vi customers might get more consistent service across different parts of the country. But the success of the plan ultimately depends on the final agreement and how well the shared infrastructure is integrated into the networks of both operators.
