#vi_bsnl

India’s telecom sector is witnessing a high-stakes transformation as state-run BSNL and private player Vodafone Idea (Vi) move toward unprecedented collaboration to stay competitive against industry leaders Jio and Airtel. 

Strategic Alliance: Sharing to Survive :

In March 2026, BSNL and Vi initiated landmark discussions to share critical infrastructure to reduce costs and accelerate 5G deployment. 

Infrastructure Pooling: The talks include sharing towers, fibre networks, and potentially spectrum.

Complementary Reach: BSNL offers a vast rural tower footprint, while Vi provides a dense urban network.

Spectrum Deal: A potential arrangement would allow Vi to offload 2G traffic to BSNL, freeing its premium 900 MHz band for 4G and 5G capacity. 

BSNL: The Turnaround Story:

Driven by government revival packages and indigenous technology, BSNL is reporting its healthiest financials in years. 

Operating Profit: BSNL's core operating profit grew by 105% in the first nine months of FY26.

Revenue Growth: Revenue for the first three quarters of FY26 reached ₹17,705 crore, a 13% year-on-year increase.

Subscriber Gains: Defying years of decline, BSNL added 271,486 wireless subscribers in January 2026.

ARPU Improvement: Average Revenue Per User (ARPU) rose to ₹91 in Q2FY26, up from ₹81 in Q1. 

Vodafone Idea (Vi): Stabilizing the Ship :

While still facing a high debt load, Vi's latest quarterly results show measurable operational improvement. 

Narrowing Losses: Net loss for Q3FY26 narrowed to ₹5,286 crore, a 20% improvement from the ₹6,609 crore loss in Q3FY25.

ARPU Leadership: Vi maintains a much higher ARPU than BSNL at ₹186, marking a 7.3% annual increase.

5G Progress: Vi has expanded 5G services to 43 cities across 17 priority circles as of early 2026.

Debt Profile: Total debt stands at approximately ₹2.09 lakh crore, with the government currently holding a 48.99% equity stake. 

Government Support & Budget 2026:

The Union Budget 2026-27 reinforces the government's commitment to maintaining a four-player market. 

Capital Infusion: The government allocated ₹28,473 crore for capital infusion into BSNL for FY27.

Network Expansion: BSNL has deployed nearly 1 lakh 4G sites using a homegrown stack from TCS and C-DoT, with plans for 22,000 more.

AGR Relief: Vi’s adjusted gross revenue (AGR) dues were frozen at ₹87,695 crore as of late 2025, with a revised long-term repayment schedule extending to 2041. 

Market Snapshot (January 31, 2026) :

Metric  Vodafone Idea (Vi) BSNL

Wireless Subscribers 19.84 Crore 9.30 Crore

Wireless Market Share 15.86% 7.44%

Net Subscriber Addition -4.11 Lakh (Loss) +2.71 Lakh (Gain)

Active (VLR) Users 85.28% 57.46%

Sources

AlgoFinder: Vi & BSNL Strategic Alliance (March 22, 2026)

LiveMint: Vi and BSNL Begin Infrastructure Talks (March 20, 2026)

Economic Times: BSNL EBITDA Soars 105% in FY26 (February 25, 2026)

PIB: TRAI Telecom Subscription Data January 2026 (March 19, 2026)

MoneyControl: Vi Q3FY26 Loss Narrows (January 27, 2026)