State-owned telecom operator Bharat Sanchar Nigam Limited (BSNL) has launched Voice over WiFi (VoWiFi) services across all telecom circles in India, enabling subscribers to make and receive voice calls and SMS over Wi-Fi networks, a move aimed at improving indoor coverage and easing pressure on its mobile network.
While private telcos had rolled out the service much earlier, for BSNL it forms part of the larger modernisation push towards wider coverage.
Bridging the Gap
The company said it’s an important step towards its modernisation strategy, with a focus on improving service quality in low-coverage areas such as homes, offices, basements and remote regions where mobile signals are often weak, which also comprises the telco’s core subscriber base.
Private operators had rolled out VoWiFi several years earlier, largely as a network optimisation and service-quality upgrade. Bharti Airtel launched Wi-Fi Calling in late 2019, followed by Reliance Jio in early 2020 as part of its all-IP network strategy, while Vodafone Idea introduced the service more selectively from late 2020.
In contrast, for BSNL, VoWiFi is being positioned less as a premium feature and more as a coverage solution.
“BSNL has historically been a laggard, so in this case too the rollout has come later than private players. However, VoWiFi should significantly improve indoor call quality for BSNL users, which could aid customer satisfaction and retention,” Faisal Kawoosa, chief analyst at Techarc, a technology market research and consulting firm, said.
The VoWiFi service is built on an IP Multimedia Subsystem (IMS) architecture that supports seamless handover between Wi-Fi and cellular networks. Calls are routed using a customer’s existing mobile number and standard phone dialler, without third-party applications.
Typically, around 70% of voice calls are made indoors, either at home or in offices where Wi-Fi connectivity is available. By handing off calls from cellular networks to broadband-based Wi-Fi, VoWiFi improves call quality while also offloading traffic from congested mobile networks, particularly during peak hours, Kawoosa added.
FY26 Outlook
From a financial standpoint, this offers limited direct upside on average revenue per user (ARPU), as the service is bundled free with existing voice plans and does not generate incremental usage charges. Its value would lie in operational efficiencies, as Wi-Fi calling shall help reduce spectrum load and network deployment costs.
Currently, BSNL is targeting a 50% increase in its consumer mobility business and a 25–30% rise in enterprise services in the next financial year. The operator saw its ARPU rise 12% to ₹91 in the July–September quarter from ₹81 in the preceding quarter, Union communications minister Jyotiraditya Scindia had said recently.
The government has also prepared a ₹47,000-crore capital expenditure plan to bolster BSNL’s nationwide network, focusing on expanding and upgrading 4G and 5G capabilities and the modernisation regime, for which the new service shall serve as an important play.
VoWiFi launch is seen as part of BSNL’s transition towards IP-driven, broadband-centric telecom model, even as the company continues to face financial pressure. BSNL reported a net loss of ₹1,357 crore in the September quarter, wider than the ₹1,048 crore loss in the previous quarter, according to financial statements dated November 14.
BSNL has set a target to grow revenues by 20% in FY26 to ₹27,500 crore, compared with around ₹23,000 crore in FY25. While VoWiFi is unlikely to materially lift ARPU, it is expected to improve service perception and operational efficiency at a time when private operators continue to invest aggressively in 4G and 5G networks.
