Bridging the Digital Divide: BharatNet progress, experience and the road ahead

The BharatNet programme, a flagship initiative under Digital India, aims to bridge the digital divide by delivering high-speed broadband to 250,000 gram panchayats (GPs) across rural India. However, rural fibre-to-the-home (FTTH) penetration remains low at just 0.5 compared to 4 in urban areas. The programme is being implemented by Bharat Sanchar Nigam Limited (BSNL) and funded through the Universal Service Obligation (USO) Fund. At tele.net’s “OFC Networks in India” conference, Rajeev Narang, Principal General Manager, BSNL and Ashutosh Jain, Principal General Manager, BSNL, discussed the critical role of BharatNet in driving digital inclusion. Key takeaways from their presentations…

Rajeev Narang

BharatNet Phase I, which ran from 2012 to 2017, has been completed. Under this phase, approximately 0.1 million GPs were connected and around 0.3 million km of optical  fibre cable (OFC) were laid. The implementation was carried out by BSNL using a combination of existing infrastructure and newly laid cables, covering states such as Kerala, Karnataka, Haryana and Meghalaya. However, utilisation was limited due to delays. This phase relied solely on underground OFC and fibre point of interconnect, and implementation was significantly impacted by right of way (RoW) issues.

Phase II, under way since 2017, targets an additional 0.15 million GPs and uses a mixed implementation model involving state governments, central public sector undertakings and public-private partnerships. Phase II includes operations and maintenance (O&M) and utilisation as integral components, with some locations already showing promising results.

However, challenges persist. Around 65,000 GPs across eight states have been implemented under a state-led model, while the remaining are managed by BSNL. The challenges included the transfer of O&M responsibilities from common service centres to BSNL, followed by delays due to BSNL’s retendering of work to planned maintenance agencies (PMAs)/final maintenance agencies (FMAs). These delays led to performance issues, affecting GP uptime and contributing to the larger problem of underutilisation of BharatNet infrastructure.

To address these issues and improve utilisation, the BharatNet Udyami (BNU) model was introduced as a pilot on October 1, 2022, with the aim of using BharatNet infrastructure to deliver FTTH connections in rural areas. BSNL engaged local entrepreneurs, termed BNUs, to provide last-mile services. BNUs were incentivised per connection to cover installation costs and customers received connections without any initial activation charges. BNUs also earned a share of the fixed monthly charges paid by customers. BSNL supported the model by extending its backhaul network and IT systems for provisioning, routing, billing and complaint handling.

The challenges faced in Phases I and II highlighted the need for single-point accountability, robust service level agreements, resilient system design and strong monitoring mechanisms.

The Amended BharatNet Program (ABP) aims to provide broadband connect­ivity to all 0.64 million inhabited villages across India. About 47,000 newly identified or previously uncovered GPs will be connected using existing fibre networks of telecom service providers (TSPs), internet service providers (ISPs) and IP-1s. Implementation will follow a design-build-operate-maintain model to ensure deployment, active utilisation and sustained maintenance. Professional agencies will be onboarded under strict performance requirements, and will be responsible for the infrastructure for up to 10 years. The government is funding utilisation as a core part of the programme. A centralised network operation centre (NOC) at the national level, supported by state-level NOCs, will be set up for monitoring and quality assurance. The entire roll-out is targeted for completion by 2026-27.

Implementation challenges include managing the state-led model, with BSNL gradually taking over operations for GPs that were previously uncovered and rectifying faulty fibre from earlier phases, which involves complex handover/takeover processes. In several cases, BSNL fibre or sufficient bandwidth is unavailable at the block level. Power reliability at block locations also affects network operation. RoW and access issues for equipment installation in buildings continue to hinder progress. Integrating state-level NOCs with the central NOC remains a technical hurdle.

To address these, O&M responsibilities will be handled by PMAs, which will rectify faults before handing over the GPs to FMAs. BSNL is engaging professional agencies through competitive bidding for maintenance services.

A tiered approach to technology deployment has been adopted to ensure universal coverage. While underground OFC remains the primary mode, alternative technologies are being used to address geographical, logistical and economic challenges. The first fallback is aerial OFC deployed on existing electricity distribution poles. If they are unavailable or inadequate, newly erected poles are used. In ­areas where fibre deployment is not possible, wireless solutions are considered. In rare and extreme cases where wireless backhaul is infeasible, advanced and emerging technologies are being considered to ensure no village is left unconnected.

To support reliability, a remote fibre monitoring system (RFMS) is being deployed. RFMS will detect any fibre cut or degradation in real time, with the mean time to detect and repair capped at four hours. These strategies ensure that the ABP remains flexible, scalable and resilient.

A core forward-looking strategy is to leverage BharatNet infrastructure for 5G backhaul. With the nationwide roll-out of 5G services under way, the rural backbone created by BharatNet can enable telecom operators to extend high speed mobile broadband to the last mile. BharatNet also envisions the creation of smart villages at the block level powered by digital services.

Ashutosh Jain

The BNU initiative is subsidised by the USO Fund. Under the scheme, any individual, ISP, self-help group, or firm can become a BNU, responsible for providing last-mile connectivity to GPs and villages. BNUs need to invest in optical line ter­minal equipment, last-mile fibre and customer optical network terminals (ONTs), and are responsible for maintaining these assets. The agreement lasts five years, extendable based on performance.

The initiative follows a partnership model. BSNL provides backhaul connectivity, maintains BSNL/BBNL-laid OFC and offers technical support, including the franchisee management portal, billing systems, customer support and lead generation. Meanwhile, BNUs lay and maintain OFC backhaul to mini-OLT sites, install fibre in customer premises, and handle installation and O&M of mini-OLTs, ONTs and related equipment. They also handle sales, customer education and post-sales support. Further, financially, the scheme offers capex incentives for new connections and a monthly revenue share to ensure sustainable income for participants.

Since the scheme’s launch, significant progress has been made. A total of 53,707 GP villages and 19,817 non-GP villages have been covered. So far, 15,699 mini OLTs have been integrated, and 10,880 BNUs are active. From October 1, 2022 onwards, 1,038,208 gross connections have been added. Institutions covered in 41,465 GPs include panchayat bhavans (39,189), schools (52,532), primary health centres, police stations, anganwadis (35,767), and other institutions (41,584), covering a total of 169,072 rural institutions.

The number of new BNU connections decreased from 251,642 in FY2022-23 to 217,908 in FY2024-25. Average monthly data usage rose significantly from 10,980 TB in FY2022-23 to 134,912 TB in FY 2024-25. The fourth quarter of 2024-25 alone recorded 139,738 TB. Per-use­r average monthly data consumption increased from 75 GB in FY2022-23 to 185.8 GB in FY2024-25, reaching 198.5 GB in March 2025. The number of u­sers with monthly data usage above 500 GB grew from 63,586 in January 2025 to 80,188 in March 2025.

The implementation of the scheme faced challenges on both the demand and supply sides. On the demand side, issues included limited service availability in specific locations, lack of awareness, doubts about the service’s usefulness, cost concerns and inconsistent quality of services. Supply side challenges included limited feasibility in remote and hard-to-reach areas, a shortage of partners for last-mile delivery, the need to actively generate demand, and scattered or low-density demand in rural areas. Some of the other concerns were maintaining high quality networks and bandwidth, ensuring reliable post-sales services, and managing regular bill payments.

A major recent step under the amended BharatNet programme is the utilisation agreement with Digital Bharat Nidhi under the USO Fund framework. This expands BharatNet coverage from 0.26 million GPs to 0.38 million villages on a demand-driven basis, aiming to distribute 150 billion rural fibre-to-the-x connections across all states and union territories.

There is a need to prioritise broadband connectivity in government institutions such as schools, PHCs, anganwadis and panchayat offices. The BNU model will be used to maintain last-mile connectivity from villages to households, with BNUs receiving a one-time financial incentive per new home fibre connection activated. BSNL will provide ILL connectivity to all 7,269 blocks, ensuring a minimum download speed of 25 Mbps to every home fibre subscriber. BSNL must launch home fibre connectivity in any village where there is demand for at least five connections. The agreement will be valid for 10 years, during which BSNL will continue to provide and maintain FTTH services.