India Opens BharatNet to Private ISPs for Rural Broadband

India is set to open its BharatNet optical fibre network to private internet service providers (ISPs) to overcome the challenges in last-mile connectivity. The government is developing a new portal for ISPs to register and is preparing guidelines for their usage of the BharatNet backbone. This strategic shift aims to invigorate the ambitious ₹1.39-trillion project, which has seen slow progress in connecting households despite its extensive fiber network.

Under the revised model, private and public sector ISPs will manage customer relationships directly. They will be eligible for per-connection subsidies of ₹8,900-12,900 and will retain 95% of monthly subscriber revenues. This approach seeks to expedite rural internet access, as the current model, reliant on BSNL and its subcontractors, has faced implementation delays. The BharatNet program, launched in 2011, has been criticized for not meeting its initial targets for connecting Gram Panchayats and households.

Concerns remain regarding financial obligations and the requirement for ISPs to submit bank guarantees against subsidies, which could increase costs and complexity. Despite these challenges, the move is viewed positively by industry stakeholders who see it as an opportunity to expand rural market reach. The government aims to leverage the existing BharatNet infrastructure more effectively, addressing criticisms of planning and execution deficiencies highlighted by recent audits.