BSNL and Vodafone Idea Still Have a Great Future in India

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Bharat Sanchar Nigam Limited (BSNL) and Vodafone Idea (Vi) both have a great future in the Indian telecom market. Even though the operators have been fighting to survive and losing most of their subscribers to Jio and Airtel, they can still turn things around pretty fast.

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BSNL will benefit a great deal if it can improve its network quality and coverage throughout India by launching 4G in the next 14 months. Since 5G is still far from reaching pan-India, the state-run telco should move fast and offer great 4G services and build a strong and loyal subscriber base.

Vi, at the same time, should look to enhance its network coverage. Like we have mentioned in the past, the telco has great spectrum resources; all that it needs is capital in the short and medium-term to move aggressively. Vi already offers industry-unique prepaid offers to its subscribers and is refarming its 3G spectrum for 4G to enhance user capacity on its network. The telco should be fine if it can just manage to raise capital soon.

4G Penetration Not There Yet

India has a very huge population. The country already has millions of 4G customers, but there is a scope for the telcos to add more soon. The rural and remote parts of India, including the dark spots, are still waiting for proper 4G services.

Telcos such as Jio and Airtel have already started targeting the rural subscriber base; it would benefit Vi if it does the same. That said, even BSNL can benefit from the fact that its competitors haven’t exploited the Indian population with their 4G services.