In Short:
Vodafone Idea and BSNL are struggling to keep up with competitors like Jio and Airtel in the telecom industry. Vi needs to increase capex and expand 4G and launch 5G soon. BSNL is delayed in launching 4G due to using only indigenous technology. Vi’s 5G rollout is slow, affecting high-paying customers. BSNL plans to launch 4G in 1 lakh sites by 2026 to provide homegrown 5G services.
Vodafone Idea (Vi) and BSNL Struggling in Telecom Sector
Vodafone Idea (Vi) and Bharat Sanchar Nigam Limited (BSNL) are facing challenges in the competitive telecom market, losing customers to rivals like Reliance Jio and Bharti Airtel. To counter this trend, Vi is working on expanding its 4G network and preparing for the launch of 5G. BSNL, on the other hand, is navigating the process of rolling out its own 4G network using indigenous technology as mandated by the government.
Vi’s 5G Rollout and Challenges
Vi has initiated its 5G rollout in four circles to meet minimum obligations, with plans for a larger rollout in the coming months. However, the company is cautious about the monetization of 5G services amidst competition. The delay in offering 5G could impact Vi’s high-paying customers who may explore other network providers like Jio or Airtel offering unlimited 5G services.
BSNL’s 4G Challenges and Future Plans
BSNL is working on launching its 4G network in 1 lakh sites over the next 18 months, aiming for a nationwide coverage by 2026. Despite the delay, this move will position BSNL to provide homegrown 5G services in the future. Vi’s financial situation could improve with potential equity adjustments and relief from AGR dues, offering a glimmer of hope amidst the telecom industry challenges.
