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TrueNorth Capital

22nd Mar · SEBI-Registered Analyst

IDEA
, BSNL Explore Infrastructure Sharing

IDEA
(Vi) and state-owned Bharat Sanchar Nigam Ltd ( BSNL ) have begun discussions on sharing towers, fibre, and even spectrum, aiming to cut costs, expand reach, and accelerate 5G rollout. The Department of Telecommunications (DoT) confirmed the talks to a parliamentary panel, which has urged a structured, time-bound roadmap. Both operators face capital constraints, making collaboration a potential lifeline. Key Developments - DoT told the parliamentary committee that discussions are underway, with progress expected by next year. - The committee emphasized avoiding duplication of infrastructure and unnecessary capex, recommending comprehensive sharing. - Collaborative use of assets could expand service reach, optimize resources, reduce expenditure, and accelerate 5G deployment. - DoT asked to submit a detailed analysis within six months, outlining modalities and financial savings. Government Stake & Role - Government holds 49% in Vodafone Idea after converting spectrum dues worth ₹36,950 crore into equity. - Despite being the largest shareholder, the government insists it will not interfere in management. - BSNL remains dependent on government support: FY27 budgeted infusion of ₹28,473 crore; FY26 revised infusion only ₹6,885 crore. Spectrum Sharing Potential - Analysts highlight value in active sharing: - Vi’s 2G users on 900 MHz could shift to BSNL’s 2G network. - This would free Vi’s 900 MHz for 4G, while BSNL could refarm its 700 MHz band for 5G. - Intra-circle roaming could enable transition without major integration. - Active spectrum sharing remains rare in India due to licence costs and technical complexities. Financial Context - Government converted over ₹53,000 crore of dues into equity for Vi in two tranches. - AGR dues of ₹87,695 crore frozen, with payments scheduled between FY32–FY41. - Both operators face uneven network strength and capital constraints, making collaboration strategically important.

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