BSNL and Vodafone Idea Discuss Infrastructure Sharing Across 12–13 Telecom Circles to Cut Costs

Bharat Sanchar Nigam Limited (BSNL) and Vodafone Idea (Vi) are discussing an expanded network-sharing arrangement that could cover 12–13 telecom circles across India. The proposed collaboration is intended to improve network coverage, reduce infrastructure costs and allow both operators to use existing telecom assets more efficiently as they compete with Reliance Jio and Bharti Airtel.

The discussions build on existing cooperation between the two companies, including roaming arrangements in Delhi and Mumbai and BSNL’s tower-leasing relationship with Vodafone Idea. The wider plan could involve access to telecom towers, optical fibre and roaming services. However, the precise commercial terms, final circle list and implementation schedule have not been publicly confirmed.

BSNL and Vodafone Idea Explore Sharing Across 12–13 Circles

The reported discussions indicate that BSNL and Vodafone Idea are looking to extend their existing infrastructure relationship to additional telecom service areas.

India’s telecom market is divided into licensed service areas, commonly called telecom circles. Operators need extensive networks of towers, fibre connections and other infrastructure to provide reliable mobile services across these regions.

Building an entirely new network in every location requires significant capital investment and can take considerable time. Sharing existing infrastructure allows operators to expand coverage without duplicating every asset.

The proposed arrangement could allow subscribers of one operator to access the other company’s network in selected locations through roaming agreements. The companies are also exploring broader sharing of physical infrastructure, including towers and optical fibre.

Earlier reports in August 2026 described discussions about expanding network sharing across multiple circles. Some reports characterised the proposed arrangement as nationwide, while the latest reported scope refers to 12–13 circles. The final geographical coverage remains subject to confirmation.

What Infrastructure Could the Two Operators Share?

The discussions involve several types of telecom infrastructure and network access.

1. Telecom towers

Towers support mobile network equipment and provide the physical locations required for wireless coverage. Sharing tower infrastructure can help operators reduce the cost of building new sites, particularly in locations where one company already has a suitable presence.

BSNL had leased approximately 1,441 towers to Vodafone Idea as of April 2026, according to information provided by the Department of Telecommunications (DoT).

The two companies are discussing ways to expand Vodafone Idea’s tenancy on BSNL’s tower infrastructure for 4G and 5G services.

2. Optical fibre networks

Fibre connections carry large volumes of data between mobile towers, network facilities and other infrastructure.

Expanding fibre connectivity is important for improving network capacity and supporting higher-speed mobile services. Sharing existing fibre routes could reduce deployment costs and accelerate network upgrades.

3. Intra-circle and inter-circle roaming

Intra-circle roaming allows subscribers to use another operator’s network within the same telecom service area. Inter-circle roaming enables network access across different service areas.

These arrangements can improve coverage without requiring both companies to build identical networks in every location.

4. Other potential areas

BSNL has also identified data centres, edge infrastructure, artificial intelligence, cloud services, enterprise solutions and Internet of Things applications as possible areas of future collaboration.

These are potential opportunities identified by BSNL, not confirmed commercial agreements between the two companies.

Network Sharing Already Exists in Delhi and Mumbai

BSNL and Vodafone Idea already have an intra-circle roaming arrangement in Delhi and Mumbai.

Under this arrangement, BSNL subscribers can use Vodafone Idea’s network in the relevant areas on agreed commercial terms. The arrangement includes revenue sharing between the operators.

The companies are now exploring whether similar cooperation can be extended to additional telecom circles.

Fibre sharing has also progressed beyond the discussion stage in a limited implementation. According to the Department of Telecommunications, a proof of concept under the Amended BharatNet Programme involved nine Vodafone Idea base transceiver stations being connected using BharatNet infrastructure.

BSNL has also shared information covering 22,500 Gram Panchayats with Vodafone Idea to support a wider fibre-sharing rollout.

These developments show that cooperation between the operators is not entirely new. The latest discussions seek to expand its geographical reach and potential scope.

Why Vodafone Idea Needs BSNL Infrastructure

Vodafone Idea is attempting to strengthen its network while managing substantial financial and investment requirements.

The company has announced a ₹45,000 crore capital expenditure plan under its Vi 2.0 strategy to expand its 4G and 5G networks over three years.

Access to BSNL’s existing towers, fibre routes and other infrastructure could help Vi reduce the cost and time required to expand coverage.

The benefits could be particularly relevant in locations where BSNL has a stronger physical infrastructure presence or access to sites that would otherwise be expensive or difficult for Vi to acquire.

Infrastructure sharing could also improve network utilisation. Instead of building new towers in every location, Vi could use existing assets and direct its investment towards areas where additional capacity is required.

The company would still need to invest in network equipment, capacity upgrades and technology deployment to improve its services.

How BSNL Could Benefit From the Arrangement

For BSNL, the collaboration could improve coverage in areas where its own network is limited.

Allowing subscribers to access Vodafone Idea’s network through roaming agreements could extend service availability without requiring BSNL to immediately construct infrastructure at every location.

The state-owned operator could also generate additional revenue by leasing its towers and other infrastructure to Vodafone Idea.

BSNL has been pursuing infrastructure sharing as a way to monetise existing assets and control capital expenditure.

According to the Department of Telecommunications, BSNL leased 11,398 towers to other telecom service providers during FY2025-26, generating approximately ₹1,019 crore. It also leased around 3 lakh route-kilometres of dark fibre to private entities, earning approximately ₹410 crore during the financial year.

The figures demonstrate that infrastructure leasing is already an important source of revenue for BSNL.

A wider relationship with Vodafone Idea could create additional opportunities, although the financial impact will depend on the final agreement and the number of locations involved.

Government’s 49% Stake in Vodafone Idea Adds Strategic Importance

The proposed collaboration also has a government ownership dimension.

The Indian government holds a 49% stake in Vodafone Idea following the conversion of a portion of the telecom operator’s dues into equity.

BSNL, meanwhile, is wholly owned by the government.

This creates an incentive to improve the utilisation of infrastructure across the two companies and avoid unnecessary duplication of investment.

A Parliamentary Standing Committee on Communications and Information Technology has also called for a structured framework for sharing towers, fibre, spectrum and other network assets.

The committee asked the Department of Telecommunications to assess the progress of discussions, potential implementation arrangements and estimated financial savings.

However, the government has previously maintained that any commercial agreement between the operators must be worked out by the companies themselves.

Can BSNL and Vodafone Idea Challenge Jio and Airtel?

Reliance Jio and Bharti Airtel have substantial advantages in network scale, coverage, capacity and investment.

Both BSNL and Vodafone Idea have been working to improve their infrastructure and expand 4G and 5G availability.

Sharing existing assets could help the two operators reduce some of the cost disadvantages associated with building networks independently.

For Vodafone Idea, better access to infrastructure could support its network expansion. For BSNL, roaming arrangements could improve subscriber access in areas where its own coverage is weaker.

However, infrastructure sharing alone will not eliminate the competitive gap.

Network quality also depends on spectrum availability, equipment, backhaul capacity, network optimisation and the amount of investment allocated to each service area.

The companies will therefore need to combine infrastructure access with continued investment in network upgrades and customer experience.

The Bigger Picture

The BSNL–Vodafone Idea discussions reflect a broader shift in India’s telecom industry towards more efficient infrastructure utilisation. As network expansion becomes increasingly expensive, operators are looking at partnerships that can reduce duplication while improving coverage and capacity.

The government’s ownership interest in both companies adds another dimension to the collaboration. A carefully structured arrangement could help BSNL monetise infrastructure while giving Vodafone Idea access to assets that support its expansion. However, the benefits will depend on the final commercial terms and how effectively the networks are integrated.

Looking Ahead

The next important development will be confirmation of the telecom circles covered by the proposed arrangement, along with details of roaming access, tower sharing, fibre utilisation and revenue settlement. The operators will also need to clarify implementation timelines and whether the expanded relationship will include additional network technologies.

For customers, the potential benefit is improved network availability in areas where either operator has weaker coverage. For the companies, the opportunity lies in lowering infrastructure costs and increasing asset utilisation. Until the final arrangements are disclosed and implemented, however, the expected savings and coverage improvements should be treated as potential outcomes rather than confirmed results.