Vodafone Idea and BSNL to expand network sharing across all telecom circles.
Vodafone Idea and Bharat Sanchar Nigam Ltd (BSNL) have agreed to expand network sharing across all telecom circles, giving the two operators a wider scope to use each other’s network and infrastructure.
The development follows a meeting between Vodafone Idea CEO Akshaya Moondra and BSNL Chairman and Managing Director Robert J Ravi on Tuesday.
For Vodafone Idea, the deal could bring in additional revenue from BSNL subscribers using its network.
Vodafone Idea could gain from additional network trafficThe arrangement comes at an important time for Vodafone Idea, which is in the process of expanding its network and improving capacity across markets.
Vodafone Idea and BSNL to expand network sharing across all telecom circles.
Vodafone Idea and Bharat Sanchar Nigam Ltd (BSNL) have agreed to expand network sharing across all telecom circles, giving the two operators a wider scope to use each other’s network and infrastructure.
The development follows a meeting between Vodafone Idea CEO Akshaya Moondra and BSNL Chairman and Managing Director Robert J Ravi on Tuesday.
As part of the agreement, the companies will enter into both intra-circle and inter-circle roaming arrangements. Their towers and optical fibre infrastructure will also be made available for sharing.
The two telecom operators already have a network-sharing arrangement in Delhi and Mumbai, where BSNL subscribers can access Vodafone Idea’s network. The latest understanding is expected to take the arrangement to other circles as well.
For Vodafone Idea, the deal could bring in additional revenue from BSNL subscribers using its network. The company can also get higher utilisation from its existing towers and fibre network as traffic from BSNL customers increases.
BSNL, on the other hand, gets access to Vodafone Idea’s network in locations where it needs to improve coverage. This is particularly relevant for rural markets, where building out network infrastructure can take time and require significant investment.
Vodafone Idea could gain from additional network traffic
The arrangement comes at an important time for Vodafone Idea, which is in the process of expanding its network and improving capacity across markets.
Allowing BSNL customers to use its network gives Vodafone Idea an opportunity to generate more revenue from infrastructure that is already in place. The sharing of towers and fibre could also help the company improve the utilisation of its network assets.
For BSNL, the agreement provides another way to widen network access without depending solely on its own infrastructure rollout.
Vi shares in focus
Vodafone Idea shares were trading at Rs 15.04 on Wednesday, August 26, down around 1 per cent during the session.
The stock has been closely watched by investors as the company works on improving its network, subscriber base and financial position. The BSNL arrangement adds another operational development to the company’s efforts to make its network more productive.
The actual benefit for Vodafone Idea will depend on how quickly the agreements are implemented across circles and the amount of traffic eventually routed through its network.
If the arrangement is expanded as planned, Vodafone Idea could see higher network utilisation and an additional revenue opportunity, while BSNL could improve its coverage, particularly in areas where its own network remains limited. ZeeBiz
