In a significant move to bolster rural internet access, the Narendra Modi cabinet recently sanctioned ₹1.39 lakh crore for the ambitious BharatNet Project. This transformative endeavor aims to revolutionize connectivity across rural India. With a focus on enhancing access to the internet in remote regions, the project has gained traction after facing multiple delays. Its successful implementation is expected to have a profound impact on public services, particularly in healthcare and education.
One of the key shifts introduced by the government is the adoption of Village Level Entrepreneurs (VLEs), referred to as Udyamis, to extend fiber connections to households. These VLEs will operate on a revenue-sharing basis, similar to private telecom giants like Airtel, Vodafone, and Jio, who utilize local cable operators to offer broadband services.
Presently, around 1.94 lakh villages have been connected through the initiative, and the goal is to link the remaining villages within the next 2.5 years. The overarching vision is to establish last-mile optical fiber-based connectivity for every home in all corners of the country. The role of VLEs becomes crucial in ensuring connectivity and maintaining these connections. Currently, the new BharatNet Udyami project has facilitated 3,51,000 fiber connections, with the potential to generate over 2.5 lakh jobs for Udyamis.
The innovative approach of the project is built upon learnings from past models. A pilot project was conducted in four districts and later expanded to 60,000 villages, providing a strong foundation for its feasibility. The aim is not only to boost livelihoods but also to enhance service delivery. This model revolves around leveraging local entrepreneurs to extend fiber connectivity directly to homes.
The BharatNet Project is a monumental undertaking in rural telecom, aimed at providing last-mile broadband connectivity to all 2.5 lakh gram panchayats (GPs) across India. Initiated in 2011 and executed by Bharat Broadband Network (BBNL), the project gained further momentum with its merger into BSNL in July of the previous year. Phase-II of the project was approved in 2017, with cumulative funding exceeding ₹42,068 crore for both phases combined.
Noteworthy data consumption statistics reflect the project’s impact, with an average of 175 GB per household per month. The monthly home broadband plans offer options starting from ₹399, providing unlimited data at a speed of 30 Mbps, coupled with OTT offerings. Plans extend up to ₹799, guaranteeing a minimum speed of 30 Mbps.
The financing structure for the project operates on a 50% revenue share between BBNL and VLEs. This intricate endeavor involves laying approximately 37 lakh route kilometers (rkm) of optical fiber cable (OFC) across the nation, of which BBNL has contributed 7.7 lakh rkm OFC.
Despite its immense potential, BharatNet encountered speed bumps over the past decade, attributed to various factors. A pivotal moment came in August 2021 when Prime Minister Narendra Modi expanded the project’s scope to encompass all 6 lakh villages, going beyond the initial target of 2.5 lakh gram panchayats. In a bid to foster last-mile connectivity through a public-private partnership (PPP) model, an additional ₹19,041 crore was allocated in 2021. However, this approach didn’t gain significant traction.
Since then, officials have engaged in numerous discussions to modernize the BharatNet initiative, leading to strategic adjustments and the involvement of Village Level Entrepreneurs. The government shoulders the infrastructure costs, while rural entrepreneurs are tasked with maintenance, operations, addressing complaints, and ensuring the well-being of the fiber network. An advantage BharatNet holds over competitors is its presence in rural areas, where private operators are less active.