NEW DELHI: Vodafone Idea and state-owned Bharat Sanchar Nigam Ltd (BSNL) have started talks on sharing towers, fibre and even spectrum, in a push to cut costs, improve network reach for both operators, and potentially accelerate 5G rollout.
The discussions, confirmed by the (DoT) to a parliamentary panel, come as both operators grapple with capital constraints and uneven network strength across regions, prompting a rethink on overlapping network infrastructure.
“Discussions have started between the two of them. The Department will report progress regarding this by next year,” telecom secretary Amit Agrawal told the parliamentary committee as cited in its report dated 16 March available on the Lok Sabha website.
The parliamentary committee on communications and information technology, chaired by member of parliament Nishikant Dubey, has asked DoT to facilitate a structured and time-bound decision on comprehensive infrastructure sharing between the two.
“The committee are of the view that, where there is direct or indirect government participation in the utilization of towers, duplication of creation of infrastructure and unwanted capital expenditure can be avoided,” it said in the report tabled in Lok Sabha on 16 March.
The panel added that in regions where one operator has a stronger presence than the other, collaborative use of towers, fibre, spectrum and other network assets could expand service reach, optimise resource use, reduce expenditure, increase connectivity and accelerate 5G rollout.
It has also asked the telecom department to prepare and submit, within six months, a detailed analysis on the sharing of towers, fibre, spectrum, and other network infrastructure, outlining progress, modalities and estimated financial savings to ensure optimal use of public resources and efficient nationwide 5G deployment.
Communications minister Jyotiraditya Scindia, however, told Mint that any such arrangement would be a commercial decision. “I don’t think that decision is going to be taken by DoT. It is inter-companies specific…if the interests combine then they both will sit down and do it,” he said in an interview.
Queries emailed to both companies did not elicit any response till press time.
Shared stakes
The government holds a 49% stake in Vodafone Idea after converting spectrum dues worth ₹36,950 crore into equity last year, a position the committee said creates “a significant opportunity for strategic coordination” between the two operators.
Even so, the government has repeatedly said it does not plan to interfere in the management of the company despite being its single largest shareholder.
Experts said infrastructure sharing in India has so far been largely limited to passive assets such as towers, dark fibre and ducts, with active sharing, particularly spectrum, remaining rare due to licence costs and technical complexities.
“A BSNL–Vodafone Idea (Vi) spectrum sharing arrangement can unlock significant value for both,” said Parag Kar, an independent telecom analyst. According to Kar, Vi’s 2G users in the 900 MHz band can shift to BSNL’s 2G network, subject to BSNL having a reliable pan-India network in this band or building one using Vi’s equipment and tower footprint.
“This would free up Vi’s 900 MHz spectrum for 4G, while allowing BSNL to use Vi’s 900 MHz capacity as a transition layer to refarm its 700 MHz band for 5G—without major network integration, through intra-circle roaming,” he said.
To be sure, BSNL remains dependent on government support for capital expenditure and spectrum. For FY27, the government plans to infuse ₹28,473 crore into BSNL/MTNL, according to Budget documents. In FY26, it had estimated an infusion of ₹33,758 crore but later revised this to ₹6,885 crore.
“The spectrum cost is ₹19,483 crore in the BE (budget estimates). In the RE (revised estimates), we have not been able to utilise it. We have requested it again in the BE for 2026–27. The reason was that some time was taken in indigenous technology development, and there were proofs of concept for sector-specific captive networks, which are still being completed,” DoT told the committee.
For Vodafone Idea, the government has converted over ₹53,000 crore of dues into equity in two tranches and is recalculating its (AGR) liabilities following a Supreme Court order. In December, the government froze ₹87,695 crore of AGR dues as of end-December and approved a payment schedule between FY32 and FY41.
In January, the company under its Vi 2.0 strategy for network expansion.