About BharatNet Project

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Context:

State-owned Bharat Sanchar Nigam Limited (BSNL) has floated around Rs 65,000-crore tender for the implementation of the phase-III BharatNet project.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

BharatNet is the world’s largest rural broadband connectivity initiative, focusing on optical fiber-based internet access.
It is managed by Bharat Broadband Network Limited (BBNL), a special purpose organization under the Ministry of Communications, Department of Telecommunications.
Aligned with the Digital India program, it aims to bridge the digital divide and enhance rural internet access.

Leveraging optical fiber technology, the project aims to connect over 2.5 lakh gram panchayats across India with broadband internet.
The goal is to provide a minimum of 100 Mbps bandwidth to each Gram Panchayat, facilitating access to e-services like e-governance, e-learning, e-commerce, and more.
Wi-Fi hotspots are being established in all gram panchayats, ensuring last-mile connectivity.
The project is expected to boost direct and indirect employment opportunities and increase income generation in rural areas.
Home broadband packages are available, starting from Rs 399 per month, offering 30 Mbps unlimited data and bundled OTT services.

The project is being implemented in three phases, as approved by the Department of Telecommunications (DoT) in 2016.

Aiming to cover 1,00,000 Gram Panchayats (GPs).
Execution carried out by three Central Public Sector Units (CPSUs): BSNL, RailTel, and PGCIL.
Targeted completion by March 2017.

Encompasses the remaining GPs using a mix of underground/aerial optical fiber cables (OFC), radio, and satellite technologies.
Involves three CPSUs and State Governments, often through their Discoms (Distribution Companies) or other agencies.
Targeted completion by December 2018.

Envisions a futuristic network with a ring topology connecting districts, blocks, and Gram Panchayats.
Targeted completion by 2023.
The BharatNet project’s multi-phased approach aims to achieve comprehensive broadband connectivity in rural areas, leveraging a combination of technologies and partnerships for nationwide impact.

The BharatNet project has been allocated a total budget of Rs. 61,000 crore.
Funds are allocated in a consolidated manner, not specific to individual states or Union Territories.
The Universal Service Obligation Fund (USOF) disburses a lump sum amount to Bharat Broadband Network Limited (BBNL) for project execution.
USOF collects levies from telecom companies to support communication service development in rural and underserved areas.

Initial goal: Connecting 2.5 lakh gram panchayats with optical fiber by August 2021.
Current status: Approximately 1.94 lakh villages connected; remaining villages expected to be connected within the next 2.5 years.
Delays caused by COVID-related lockdowns and movement restrictions.
Government extended the project deadline to 2025 in the Union Budget 2022-23.

Slow Implementation:

Implementation progress has been relatively slow.
About 194,000 gram panchayats have been made service-ready as of March this year.
Around 6,000 gram panchayats were added from November 2022 to March.

PPP Mode Challenges:

Initial attempt to involve private companies through a public-private partnership (PPP) model faced challenges.
First request for proposal (RFP) in July 2021 received no response from private players.
Concerns over onerous terms and conditions and unfavorable revenue sharing model.

Government to introduce a revised PPP model for the BharatNet project in the coming months.
The updated model aims to address challenges faced by private companies and attract their participation.
The focus remains on expanding optical fiber-based broadband connectivity to rural areas across India.

-Source: The Hindu