BSNL is a Bigger Threat to Vi than Airtel, Jio – Let’s Talk

Vodafone Idea Limited (VIL), the third-largest telecom operator in the country, is likely facing a bigger threat from BSNL (Bharat Sanchar Nigam Limited) than Airtel and Jio in the short-term. The ailing the telecom operator is losing subscribers every month and quarter that goes by. But that’s not been the case with BSNL.

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The 2G User Conundrum

One of Vi’s biggest challenges lies in its 2G-heavy customer base. Among private operators, Vi still has the largest proportion of 2G subscribers. These users are price-sensitive, seeking the most affordable services. However, with telcos—including Vi—continuing to raise tariffs, the risk of churn increases.

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Unlike high-paying 4G and 5G users who tend to migrate to Jio or Airtel for better network experiences, 2G customers have a different fallback option—BSNL. The state-run operator offers the lowest tariffs, and with its long-delayed 4G rollout finally underway, BSNL has become an automatic choice for cost-conscious users.

Why BSNL is a Bigger Threat Than Before

For years, BSNL was written off due to poor network quality and delayed modernisation. But in FY25, the company reported two consecutive quarters of net profits and managed to add new subscribers. In fact, its performance in terms of growth has outpaced Vi’s, marking a surprising turnaround.

While BSNL still lags behind Airtel and Jio in after-sales service and customer experience, it is closing the gap, which could make it an even bigger threat to Vi’s fragile base.

The Tariff Reality

For Vi, growth is nearly impossible without tariff hikes. The company, like Airtel and Jio, must rely on higher average revenue per user (ARPU) to improve its financials. But unlike its rivals, Vi doesn’t have the same financial muscle to keep investing in network expansion while waiting for ARPU gains.