BSNL and Vi are Needed in India: Here’s Why

Bharat Sanchar Nigam Limited (BSNL) and Vodafone Idea (Vi), two of the ailing telecom operators, are working as hard as possible to make a U-turn towards success. Both telcos have been struggling for as long as one can remember. There’s not been a single positive quarter for Vi since Vodafone and Idea merged. While both telcos are not the top picks for consumers or investors, they are desperately needed in the Indian market. BSNL is a govt run company; thus, it can’t take private investments (nor would any private company be interested as what has been happening with Vi). However, BSNL still gets relief packages from the government, but Vi won’t get it in a direct manner. In September 2021, the govt stepped in with relief measures and potentially saved the future of Vi. There were reasons behind the move. Why are BSNL and Vi so important in India, and why is the govt doing everything in its power to keep the two running? Here’s why.

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Avoiding the Duopoly of Jio and Airtel

If BSNL and Vi go out of business, it will leave Indian consumers with Jio and Airtel. The duopoly of both companies can be potentially hazardous for the Indian market. It could lead to telcos becoming ignorant of the consumer needs as the consumers won’t have any other option to go to. It would also lead to a downfall in the quality of service as it would be hard for Airtel and Jio to alone serve the complete nation.