Govt. owned telecom company BSNL has announced that it will start providing a minimum broadband speed of 2 Mbps to its customers from October 1, at no extra cost. As of now, BSNL provides a minimum broadband speed of 512 Kbps and this move is certainly aimed at reviving companies fortunes.
BSNL’s customer base is eroding very fast, as it lost as much as 1.78 crore wireless customers and 20 lakh wireline customers within a span of year between March 2014 to March 2015. This eventually resulted in a massive financial loss of over Rs. 7,600 crores to BSNL.
This move by BSNL may soon force TRAI to redefine broadband speeds from current 512 Kbps to 2 Mbps as envisioned in National Telecom Policy or NTP 2012. Last year TRAI raised the minimum broadband speed from 56 Kbps to 512 Kbps. This may also force private broadband service providers to offer high speed broadband plans at cheaper rates.
The new minimum broadband speeds will also facilitate the Digital India initiative spearheaded by our Prime Minister Narendra Modi. Telecom Minister, Ravi Shankar Prasad launched this new scheme in Gurgaon, and according to him, the increase in the minimum speed is part of the administration’s Digital India project, which is focused on the poorer sections of society.