A Parliamentary Committee has sharply criticized Bharat Sanchar Nigam Limited’s (BSNL) rural Wi-Fi hotspot project, revealing that more than 24,000 publicly funded hotspots generated just ₹3.09 lakh in revenue against an annual target of ₹75 crore. The Committee on Public Undertakings (CoPU), in a report tabled in the Lok Sabha, said the project suffered from weak planning, delayed execution, and poor commercial viability, resulting in financial losses and minimal returns despite significant government support.
The committee also highlighted operational lapses that led to BSNL losing ₹1.15 crore in operational subsidy under the Universal Service Obligation Fund (USOF)-backed scheme. While the Department of Telecommunications (DoT) and BSNL have introduced improved monitoring mechanisms for newer projects, the panel said accountability for past lapses remains inadequate and urged the telecom operator to establish a time-bound framework to fix responsibility.
House Panel Flags Poor Performance of Rural Wi-Fi Project
The CoPU reviewed BSNL’s project to install 25,000 Wi-Fi hotspots at rural telephone exchanges under the USOF initiative.
Key findings include:
- 24,333 hotspots were eventually commissioned.
- 700 hotspots became operational only after the subsidy claim period had expired.
- Eight hotspots were never commissioned.
- The delays resulted in a combined subsidy loss of ₹1.15 crore.
Project Snapshot
| Metric | Details |
|---|---|
| Planned Wi-Fi Hotspots | 25,000 |
| Hotspots Commissioned | 24,333 |
| Commissioned After Subsidy Deadline | 700 |
| Never Commissioned | 8 |
| Operational Subsidy Loss | ₹1.15 crore |
Revenue Fell Far Short of Expectations
The committee noted that the project’s commercial performance was particularly disappointing.
Against a projected annual revenue target of ₹75 crore for FY2018-19, BSNL generated only ₹3.09 lakh during the period from FY2017-18 to FY2021-22. The panel attributed the poor outcome to:
- Prolonged free Wi-Fi services beyond the approved trial period.
- Inadequate market assessment before rollout.
- Failure to convert free users into paying subscribers.
- Weak commercial planning and execution.
Revenue Comparison
| Metric | Amount |
|---|---|
| Annual Revenue Target | ₹75 crore |
| Revenue Earned (FY18–FY22) | ₹3.09 lakh |
Committee Seeks Accountability
While acknowledging that BSNL and the DoT have introduced several reforms in newer Digital Bharat Nidhi (DBN) and BharatNet projects, the parliamentary panel said these improvements do not address responsibility for earlier financial losses.
The committee recommended:
- A structured internal review of the project.
- A time-bound accountability framework.
- Clearly defined responsibilities for project execution.
- Periodic performance reviews to prevent similar lapses in future government-funded telecom initiatives.
BSNL Points to Newer Business Models
In response, the Ministry of Communications said recent broadband initiatives have shifted toward more commercially sustainable models.
According to the ministry, newer projects emphasize:
- BharatNet-based Fibre-to-the-Home (FTTH) services.
- Postpaid billing instead of prolonged free access.
- Customer retention incentives.
- Greater participation by local BharatNet entrepreneurs.
The government argued that these measures are intended to improve the financial sustainability of future rural broadband deployments.
Broader Implications
The committee’s observations underscore the importance of balancing public infrastructure objectives with commercial viability. While expanding rural internet connectivity remains a key policy priority, the report suggests that inadequate planning, weak market analysis, and delayed execution can significantly reduce the effectiveness of taxpayer-funded digital infrastructure projects.
The findings also signal Parliament’s increasing focus on ensuring that future telecom initiatives incorporate stronger governance, measurable performance benchmarks, and greater accountability alongside digital inclusion goals.
Looking Ahead
The parliamentary panel’s assessment highlights significant shortcomings in BSNL’s rural Wi-Fi hotspot programme, with minimal revenue generation, delayed implementation, and avoidable subsidy losses raising concerns over project planning and execution. While the government has introduced improved monitoring tools and commercially oriented models for newer broadband initiatives, the committee has made it clear that future reforms must be accompanied by accountability for past lapses.
Looking ahead, BSNL’s ability to strengthen rural broadband services will depend on adopting sustainable business models, improving project management, and ensuring timely execution. As India continues expanding digital infrastructure through BharatNet and related programmes, the lessons from this project are likely to influence how future publicly funded telecom initiatives are planned, monitored, and evaluated.
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