Vi and BSNL falter as Jio and Airtel advance in broadband race

The Telecom Regulatory Authority of India (TRAI) has recently published data indicating that Bharti Airtel and Reliance Jio collectively control 81.8% of the broadband market. Jio commands a 50.74% market share, while Airtel holds 31.06%. This refers to the combined broadband market, which includes both wireline and wireless services. The data pertains to the first quarter of FY26, ending on 30 June 2025.

Vodafone Idea holds a market share of just 13%, while BSNL accounts for 3.44%. Jio and Airtel are actively targeting consumers in the home internet segment with the launch of their respective AirFiber services. In contrast, Vodafone Idea and BSNL have struggled to compete meaningfully in this area. While the market cannot yet be officially classified as a duopoly, it is arguably as close to one as it can get, especially if current trends continue in favour of Jio and Airtel.

As the Indian telecom market increasingly consolidates around these two giants, consumers are becoming ever more reliant on Airtel and Jio. With limited competition, both companies now have the pricing power to raise tariffs at will, leaving subscribers with few alternatives. The prospect of a new entrant disrupting the market remains extremely slim, given the significant capital investment, spectrum acquisition costs, and regulatory challenges involved in entering the telecom sector. Real competition has been all but extinguished; Jio, Airtel, and the ailing Vodafone Idea now account for approximately 91–92% of all telecom subscribers in India.

Vodafone Idea (Vi), in particular, has been unable to mount any serious challenge due to years of financial decline. The company continues to lose customers and has a high proportion of low-revenue 2G users. In addition to its shrinking subscriber base, Vi faces mounting liabilities to the government and vendors. Although the company has managed to reduce its bank debt over the past two years, it has been unable to raise further capital through loans. Without fresh funding, it will be extremely difficult for Vi to remain competitive.

In parallel, the government is attempting to revive Bharat Sanchar Nigam Limited (BSNL). The state-owned telecom operator is seeking to attract new users and retain its existing customer base through a nationwide rollout of 4G services. BSNL has also launched Q-5G Fixed Wireless Access (FWA) as part of its broader revival strategy.

Despite there being more than two players, Jio and Airtel, with a combined subscriber base of around 200 million, have effectively shaped the market into an almost-duopolistic structure. In most regions, consumers can access high-speed broadband from both providers, each of which possesses significant financial and operational strength to attract customers through superior service and promotional offers.