On Monday afternoon, Communications and Information Technology Minister of India, Ravi Shankar Prasad has confirmed by tweeting, “#BSNL redefines broadband in India. Now minimum internet speed offered by BSNL will be increased from 512kbps to 2Mbps. #digitalindia.”
Since, 2mbps speed can only be accessed as per the fair usage policy (FUP), once the data consumption crosses the limit (depending on your plan) then the speed would drop down to 512 kbps. If you have taken 1GB data plan, then within 12 hours, your quota will be over and your speed drops down from 2Mbps to 512Kbps.
The new plan would be effective from October 1, 2015 across India.
As BSNL has 12 crore customers, its move in the wake of Airtel’s aggressive capture of 4G Internet users with cheaper billing charges, points at inevitable competition soon in the telecom sphere.
The BSNL move is also in line with TRAI 2009 recommendations to upgrade defining a minimum speed for broadband to 2 Mbps. However, for mobile Internet, it is 1 Mbps on 3G.
However, BSNL will have to withstand competition from the rivals. Reliance Jio’s 4G peaks up to 100Mbps and the charge is Rs.51 for 1GB data. Airtel’s 4G is available at higher speeds and lower prices in its inaugural offer. BSNL has already offered free calls in the night on landlines and unless it offers more data usage under Fair Usage Policy, the move to minimum 2Mbps speed will not work.