The solution
In October 2011 the Union Cabinet approved a National Optical Fibre Network to extend the fibre that already ran to district and block headquarters down to gram panchayats, with an initial cost of Rs 20,000 crore from the Universal Service Obligation Fund. The design's economy was in what it refused to do: it did not dig a new national network, it reused the spare strands inside three public PSUs — BSNL, RailTel and Powergrid — and it committed the result to open, non-discriminatory access for every telecom operator, making the backbone a shared platform rather than a government monopoly.
Execution was slow but real. The special purpose vehicle BBNL was incorporated in February 2012. Phase I — one lakh gram panchayats, built by utilizing existing infrastructure — finished in December 2017 against a 2013 deadline. Phase II added 1.5 lakh more by fibre, radio and satellite, reaching 2.13 lakh gram panchayats by its extended August 2023 date. In August 2023 the Amended BharatNet Program reset the plan: a ring topology for 2.64 lakh gram panchayats, 3.8 lakh non-GP villages on demand, and ten years of paid SLA-backed operation and maintenance, at a cost of Rs 1.39 lakh crore.
The honest ledger is that the clever half worked and the hard half is unfinished. By January 2025, 2.14 lakh gram panchayats were service-ready, yet only 30.4% of 6.5 lakh villages had broadband points; 1.22 million FTTH connections left about 97% of rural households unconnected; and of 104,574 village Wi-Fi hotspots, only 6% were active. A CAG audit found the Common Service Centres contracted for maintenance were not functioning, and no dedicated maintenance funding existed — the gap the 2023 ten-year SLA model was written to close.
What it achieved
Light the fibre the state already owns; run it open-access
Why it worked
The cheapest new national network is the fibre the state has already buried: NOFN bought splices, not trenches.
Open-access wholesale turned one public pipe into a market — every operator could retail without building rural backhaul.
USOF funding made it a public obligation, insulating the build from balance-sheet thinking.
The 2023 amendment paid operators for uptime under SLA, because the CAG-found failure was maintenance, not construction.
Village-level retail (hotspots, later 'Udyami' entrepreneurs) recognised that the last mile is a business, not a cable.
What can be applied
When the state already owns the middle of the network, don't rebuild it — light it and run it open-access. But a spine is not a service: the last mile needs its own owner and budget.
Aftermath
As of December 2024 the government reports over 2.14 lakh gram panchayats service-ready, with the Amended BharatNet Program financed through the Digital Bharat Nidhi (the renamed USOF) and private concessionaires running operations under ten-year agreements. State agreements signed through 2025-26 extend the ring to laggard circles. The programme remains the world's largest rural broadband project; its open-access spine underwrites Digital India services, while the audit trail — 6% of hotspots active, 97% of households unconnected — keeps the last mile the open question.
FOLLOW THE EVIDENCE
The sources
- Scheme for creation of National Optical Fiber Network for Broadband connectivity of Panchayats pib.gov.in
- Explainer: What is the BharatNet program and what is its status of implementation? factly.in
- BharatNet: Bridging the Digital Divide pib.gov.in
- Why BharatNet Remains an Unfinished Dream moneylife.in