The reason behind this good move is that the state owned company was losing its customer base to private players. This move should boost its broadband user base and people will not leave. The losses for BSNL between March 2014 and March 2015 stood at Rs 7,600 crores. BSNL needs to take serious actions to cut down the losses. India is one of very few developing countries in the world, who is giving such low broadband speeds. With this announcement by BSNL, private operators such as Airtel might also increase their minimum supplied speed. TRAI is also expected to redefine the broadband speed meaning, which is at 512 KBPS right now. This speed is not considered broadband in any of the developed countries of the world.
