BSNL and Vodafone Idea Can Build Fiber Broadband Business if 5G Doesn’t Work

Bharat Sanchar Nigam Limited (BSNL) and Vodafone Idea (Vi) can work on growing their fiber internet business for consumers and enterprises in case their 5G is delayed, or 5G doesn’t bring in the kind of revenues they expected. In the 5G landscape, Jio and Airtel are the first movers in India and are likely going to capture the biggest market share as they have done with 4G. However, there’s not just one way to make money. BSNL and Vodafone Idea can still make a lot of money by growing their FTTH (fiber-to-the-home) business. The demand for FTTH services is quite high in a country like India, where mobile networks are mostly congested. When inside their homes, users prefer the company of fiber broadband connection over mobile networks for entertainment and working needs.

Vodafone Idea Wireline Subscribers in August 2022

Vodafone Idea operates its fiber internet service under the FTTH arm called You Broadband. With You Broadband, Vi is providing customers with competitive offerings. But the only issue with You Broadband is that its growth is too slow. It is definitely understandable that Vi doesn’t have a lot of money to pour into the business. But then again, You Broadband can stand on its own two legs at the end of the day. According to the TRAI (Telecom Regulatory Authority of India) data, Vi added 4202 wireline subscribers during August 2022.

While mobile networks are almost present everywhere, fiber is yet to penetrate urban India completely. Thus, in the coming years, we will see ISPs (internet service providers) battling it out in the FTTH business. Especially names such as Excitel and ACT Fibernet would be at the top, competing with the telcos in this domain.

BSNL has a Strong Wireline Broadband Presence in India

As per the TRAI data for August 2022, BSNL was the second largest wireline service provider in India, with a market share of 27.46%. The state-run telco does have a strong presence in the segment but has been losing customers fast to the likes of Airtel and Jio. This is primarily because of the innovations that the private telcos have made and their bundled offerings.

5G is going to take years to become as common as 4G in India. This is a chance for the FTTH service providers to boost fiber rollout in new locations and aggressively market their services. BSNL and Vodafone Idea can make a huge difference in the FTTH world and garner a lot of revenue.