BharatNet’s Last-Mile Crisis

Source: Indian Express

Context

BharatNet (originally National Optical Fibre Network, NOFN, 2011), one of the world’s largest rural broadband projects, has been hit by persistent last-mile connectivity issues. The Indian Express article reportedly finds that only about 45 per cent of FTTH (Fibre-to-the-Home) connections commissioned under BharatNet are currently active, exposing gaps between infrastructure creation and actual service delivery. The project, approved by the Union Cabinet on 25 October 2011 and being executed by Bharat Broadband Network Limited (BBNL) (a Special Purpose Vehicle incorporated on 25 February 2012), aims to provide broadband connectivity to 2.5 lakh Gram Panchayats. The Amended BharatNet Program (ABP), approved on 4 August 2023 with an outlay of ₹1.39 lakh crore, seeks to transform existing infrastructure into a resilient IP-MPLS ring-based architecture with 10-year O&M through a Centralised Network Operating Centre (CNOC) and BSNL as the single Project Management Agency.

The Story

• Reported finding: Only about 45 per cent of FTTH connections commissioned under BharatNet are currently active.
• Implication: Even where infrastructure has been laid, service is not flowing to rural homes/institutions.
• Highlights: Persistent last-mile challenges, operational/maintenance gaps, awareness gaps.

About BharatNet

• Original name: National Optical Fibre Network (NOFN).
• Launched: 25 October 2011 (Union Cabinet approval).
• Renamed: BharatNet in 2015.
• Implementing agency: Bharat Broadband Network Limited (BBNL) — a Special Purpose Vehicle (SPV) incorporated on 25 February 2012.
• Originally targeted: 2.5 lakh Gram Panchayats.
• Vision: Provide broadband connectivity to every village/Gram Panchayat for e-health, e-education, e-governance.
• Funding: Digital Bharat Nidhi (DBN), formerly Universal Service Obligation Fund (USOF).

Amended BharatNet Program (ABP)

• Approved: 4 August 2023 by Union Cabinet.
• Outlay: ₹1.39 lakh crore (about USD 16.9 billion).
• Aim:
  • Up-gradation of existing BharatNet Phase-I and Phase-II network.
  • Connection to remaining/balance GPs.
  • Last-mile FTTH connectivity (target: 1.5 crore FTTH connections).
• Project Management Agency: BSNL (single agency under ABP).
• Topology: Ring topology for redundancy and fault tolerance.
• Architecture: IP-MPLS ring-based (replacing earlier linear).
• O&M: 10 years through Centralised Network Operating Centre (CNOC) + State NOCs.
• Funding pattern: Payments to Project Implementation Agencies (PIAs) based on Service Quality Agreements (SLAs).

About BBNL (Bharat Broadband Network Limited)

• Established: 25 February 2012.
• Type: Special Purpose Vehicle (SPV) under Companies Act, 1956.
• Under: Department of Telecommunications (DoT), Ministry of Communications.
• Purpose: Establishment, management, and operation of National Optical Fibre Network (NOFN/BharatNet).
• Headquartered: New Delhi.

About Digital Bharat Nidhi (DBN)

• Formerly known as: Universal Service Obligation Fund (USOF).
• Renamed: 2024.
• Purpose: Fund telecommunications development in rural and remote India.
• Source: Universal Service Levy (USL) of about 5 per cent of Adjusted Gross Revenue (AGR) of telecom operators.
• Accumulated corpus: about ₹1,71,588.7 crore.

BharatNet Udyamis Model

• Village-Level Entrepreneurs (VLEs) delivering services at the local level.
• Public-Private Partnership (PPP) model.
• Like Airtel/Jio franchisee approach.
• 50:50 revenue-sharing basis between government and entrepreneur.
• Government bears infrastructure cost to homes.
• VLEs handle maintenance and operation.

Practice MCQs

Q1. With reference to BharatNet project, consider the following statements:

1. BharatNet was originally launched as the National Optical Fibre Network (NOFN) in 2011.
2. It was renamed BharatNet in 2015.
3. It is executed by Bharat Broadband Network Limited (BBNL), a Special Purpose Vehicle incorporated in February 2012.
4. The project aims to provide broadband connectivity to about 2.5 lakh Gram Panchayats.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

Q2. With reference to the Amended BharatNet Program (ABP), consider the following statements:

1. ABP was approved by the Union Cabinet on 4 August 2023.
2. It has an outlay of ₹1.39 lakh crore.
3. BSNL has been appointed as the single Project Management Agency under ABP.
4. ABP uses a linear topology rather than ring topology.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; ABP uses a ring topology, NOT linear, for redundancy and fault tolerance.)

Q3. With reference to BharatNet’s funding and implementation, consider the following statements:

1. BharatNet is funded by the Digital Bharat Nidhi (DBN), formerly known as the Universal Service Obligation Fund (USOF).
2. The accumulated corpus of DBN is about ₹1,71,588.7 crore.
3. As of February 2026, about 2,17,805 GPs are service-ready under BharatNet.
4. Only Wi-Fi hotspots are used for last-mile connectivity; FTTH is not part of BharatNet.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; BharatNet uses BOTH Wi-Fi hotspots AND FTTH for last-mile connectivity.)

Q4. With reference to the implementation challenges of BharatNet, consider the following statements:

1. The 2024 ICRIER study found less than 1.19 per cent of available bandwidth was used in rural areas.
2. The original design assumed existing telecom service providers would handle last-mile connectivity, which was not feasible in many rural areas.
3. Common Service Centres (CSCs) responsible for O&M faced functioning issues.
4. BharatNet has met all its phase-wise deadlines without delay.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; BharatNet has missed multiple deadlines with shifting goalposts across phases.)

Q5. With reference to BharatNet’s three phases of implementation, consider the following statements:

1. Phase I (2011-2017) aimed to connect 1 lakh GPs and was completed in December 2017.
2. Phase II (2017-2023) targeted an additional 1.5 lakh GPs and reached about 86.75 per cent by August 2023.
3. Phase III (2023-2025) focuses on connecting 6.5 lakh villages with integration of 5G and improved last-mile connectivity.
4. The BharatNet Udyamis are foreign multinationals providing last-mile services.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; BharatNet Udyamis are Village-Level Entrepreneurs (VLEs), NOT foreign multinationals.)

Q6. With reference to other major government initiatives connected to BharatNet, consider the following statements:

1. PM-WANI aims to deploy public Wi-Fi hotspots across India.
2. National Broadband Mission (NBM) 2.0 was launched on 1 April 2025 with targets for 2030.
3. Digital Bharat Nidhi (DBN) is the renamed Universal Service Obligation Fund (USOF).
4. PMGDISHA is a programme for promoting digital literacy in rural India.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

Answer Key

1. (d), All four statements are correct.
2. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because ABP uses ring topology.
3. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because both FTTH and Wi-Fi are used.
4. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because BharatNet has missed multiple deadlines.
5. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because BharatNet Udyamis are VLEs.
6. (d), All four statements are correct.

Exam Relevance

Exam	Relevance
UPSC Prelims	GS Paper III on Indian Economy (Digital Infrastructure, E-Governance); GS Paper II on Government Schemes
UPSC Mains	GS Paper III on Indian Economy, Digital India; GS Paper II on Government Policies, E-Governance
BPSC and State PCS	Digital India, E-Governance, Current Affairs
Banking and NABARD	Digital banking, financial inclusion
RBI Grade B	Digital banking, financial inclusion
NABARD Grade A	Very high importance, rural connectivity, digital infrastructure