India is preparing to expand private internet service providers’ role in BharatNet, the government-backed rural broadband programme, as authorities seek to accelerate household connections across the country. The proposed changes would allow private ISPs to use BharatNet’s optical fibre infrastructure to connect rural customers directly, manage subscriptions and earn revenue from the services they provide.
The initiative comes as the government faces a persistent gap between building broadband infrastructure and getting people to use it. According to a report published by Mint on October 26, 2026, only 1.64 million homes had been connected against a target of 15 million by the end of September. The proposed model is intended to make the existing network more commercially attractive to private providers, encourage last-mile investment and improve internet access in villages.
Key Takeaways
- Private ISP participation: The government plans to make it easier for private providers to use BharatNet infrastructure to connect rural households.
- Low household adoption: Mint reported 1.64 million connections against a target of 15 million homes by the end of September 2026.
- Financial incentives: The reported proposal includes subsidies of ₹8,900–₹12,900 per connection.
- Revenue sharing: Private ISPs would reportedly retain 95% of monthly subscriber revenue.
- New enrolment process: A dedicated portal and revised guidelines are being prepared, according to the report.
- Potential impact: More providers could mean greater competition, wider broadband availability and new opportunities for rural businesses.
- Policy status: The reported changes are still being prepared; the final guidelines and implementation details will determine how quickly the model takes effect.
What Is BharatNet?
BharatNet is India’s national rural broadband infrastructure programme. It aims to extend optical fibre connectivity to gram panchayats and support the delivery of broadband services to villages, public institutions, businesses and households.
The project is part of the government’s broader Digital India initiative. Reliable rural connectivity can support online education, telemedicine, digital payments, e-commerce, government services and remote work.
BharatNet is primarily a wholesale infrastructure network rather than a retail internet service for every household. Its fibre backbone can carry broadband capacity to rural locations, but additional infrastructure and service providers are needed to connect individual homes.
The government has used different implementation arrangements, including public-sector agencies, private-sector participation and local entrepreneurs known as BharatNet Udyamis. Under the existing framework, private companies can lease BharatNet bandwidth or fibre and establish last-mile connections using technologies such as fibre-to-the-home (FTTH) and Wi-Fi.
The latest reported proposal would build on this approach by giving private ISPs a more direct role in reaching and serving rural subscribers.
Why the Government Wants Private ISPs to Participate
The central challenge is last-mile connectivity: the final stretch of the network that links a village-level fibre connection to an individual home or business.
Building a fibre backbone requires substantial investment, but it does not automatically create paying subscribers. Providers still need to install local equipment, connect homes, handle customer support, maintain service quality and collect payments.
Private ISPs already operate retail broadband businesses and may have experience in pricing, customer acquisition and local network management. Allowing them to use existing public infrastructure could reduce the cost of entering rural markets.
According to Mint’s October 26 report, the government is preparing a portal for ISP enrolment and revised guidelines for the use of BharatNet infrastructure. The objective is to encourage providers to connect households rather than leaving completed fibre infrastructure underused.
What Are the Proposed Subsidies and Revenue Rules?
The financial arrangements are a central part of the reported proposal. They are intended to make rural connections more attractive to ISPs, particularly in areas where household density and expected revenue may be lower than in cities.
| Proposed measure | Reported details | Intended benefit |
|---|---|---|
| Per-connection subsidy | ₹8,900–₹12,900 | Help cover the cost of establishing a connection |
| Monthly subscription revenue | ISPs would reportedly retain 95% | Give providers a stronger incentive to acquire and retain customers |
| ISP enrolment | A dedicated portal is being prepared | Simplify participation |
| Revised operating rules | New BharatNet usage guidelines are being prepared | Clarify how providers can use the network |
Source: Mint, October 26, 2026. These are reported proposed terms, not a substitute for the final government guidelines.
Subsidies could help providers recover some of the upfront expense of installing equipment and connecting customers. Retaining most subscription revenue could also improve the business case for ongoing operations.
However, the final rules will need to clarify eligibility, subsidy conditions, service obligations, accountability and how disputes between infrastructure operators and retail ISPs will be handled.
Why BharatNet Has Struggled to Connect More Homes
BharatNet’s implementation challenges extend beyond laying optical fibre. Rural broadband adoption depends on whether networks are operational, whether local providers are available and whether households can afford installation and recurring charges.
Some areas may have fibre reaching the gram panchayat but lack the local distribution network needed to serve individual homes. Other locations may face maintenance problems, unreliable power, difficult terrain or insufficient commercial demand.
The scale of the remaining task is significant. The government’s Digital Bharat Nidhi dashboard tracks infrastructure deployment and rural fibre connections, while the Public Accounts and parliamentary review process has highlighted delays and underutilisation in parts of the programme.
Mint’s reported figure of 1.64 million household connections against a 15-million target illustrates the adoption challenge under the particular target it discussed. Government dashboards and programme documents can report different connection categories and reporting dates, so these figures should not be treated as interchangeable.
Bringing in more ISPs may address some of these problems, but it will not automatically fix fibre outages, local infrastructure gaps or affordability issues.
How Rural Households and Businesses Could Benefit
If the proposed model attracts more providers, rural customers could gain additional options for home broadband. Greater competition may encourage better pricing, improved service packages and more responsive customer support.
The effects could extend beyond household entertainment. Reliable broadband can help students access online classes, enable small businesses to sell products digitally and allow farmers to obtain market information and government services.
Healthcare facilities could use stronger connections for telemedicine and digital records, while village-level entrepreneurs could build businesses around installation, maintenance and customer support.
These benefits depend on actual deployment. Households will see improvements only when providers make connections available, maintain reliable service and offer plans that customers can afford.
What It Means for Telecom Companies and Local ISPs
For private ISPs, BharatNet could provide access to infrastructure that would otherwise be expensive to build independently. Instead of laying an entirely new long-distance fibre network, a provider could focus on local distribution, customer acquisition and service delivery.
Smaller regional ISPs may find opportunities in underserved villages where larger operators have limited retail reach. Local entrepreneurs could also work with ISPs to install and maintain last-mile connections.
For the government, the model could improve the utilisation of publicly funded infrastructure and reduce the gap between network availability and actual usage.
The commercial opportunity will nevertheless depend on the final terms. Providers will need clarity on wholesale pricing, network access, service-level expectations, subsidy payments and responsibility for repairing faults.
The Bigger Picture
The BharatNet proposal reflects a wider change in India’s digital infrastructure strategy: public investment can build the foundation, but private operators and local businesses may be needed to turn that infrastructure into widely used services. The success of rural broadband depends on the entire chain, from fibre deployment to the final connection inside a home.
If the new arrangements are implemented effectively, they could help unlock more value from BharatNet and improve digital inclusion. But subsidies and easier ISP access will need to be accompanied by reliable networks, transparent rules and measurable service standards. The ultimate test will be whether more rural households receive affordable, dependable broadband—not simply whether more fibre is laid.
FAQs
1. What is BharatNet?
BharatNet is a government-backed programme that builds broadband infrastructure to connect gram panchayats and support internet access in rural India. It provides the network foundation that ISPs and other providers can use to deliver services.
2. Why is the government opening BharatNet to private ISPs?
The government wants to accelerate last-mile connectivity and encourage more household subscriptions. Private ISPs can potentially use existing fibre infrastructure to reach customers without building an entirely separate backbone.
3. How much subsidy could private ISPs receive?
Mint reported a proposed subsidy of ₹8,900–₹12,900 per connection. The final eligibility rules and payment conditions will depend on the government’s formal guidelines.
4. Will rural internet become cheaper?
It could, if greater participation leads to more competition and lower connection costs. However, the proposal does not guarantee a particular retail price. Actual costs will depend on provider plans, installation charges, network quality and local market conditions.
5. When will the new BharatNet model begin?
As of October 26, 2026, the reported portal and revised guidelines were still being prepared. A definitive rollout date should not be assumed until the government publishes the relevant notification and implementation details.
Looking Ahead
The next major development will be the publication of the new ISP enrolment process and operating guidelines. Those details should establish how providers can access BharatNet infrastructure, claim incentives and serve subscribers. The rollout’s progress will be best measured by active household connections, network uptime and service affordability.
For rural India, the proposal offers a potential route from infrastructure availability to practical digital access. If the government can align incentives with reliable service and genuine household demand, private ISP participation could help more villages benefit from online education, digital commerce, healthcare and public services. The results will depend on implementation, not just the announcement.
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