What Happened
- The Ministry of Communications (MoC) signed a Memorandum of Commitment (MoC agreement) in Amaravati, Andhra Pradesh, sanctioning ₹2,432 crore for the Amended BharatNet rollout in the state.
- The signing was attended by Andhra Pradesh Chief Minister N. Chandrababu Naidu and Union Minister for Communications Jyotiraditya Scindia.
- The rollout will provide broadband connectivity to 13,426 village panchayats in Andhra Pradesh.
- Key focus areas: last-mile access and achieving a target of 98% network uptime, significantly above typical government network SLAs.
- The project is part of the Amended BharatNet Programme (ABP), approved in August 2023, which aims to provide optical fibre connectivity to 2.64 lakh gram panchayats in ring topology across India.
Static Topic Bridges
BharatNet: India's Rural Broadband Mission
BharatNet (formerly National Optical Fibre Network, NOFN) is one of India's flagship digital infrastructure programmes, aimed at providing broadband connectivity to all gram panchayats (GPs) in the country. The project was originally approved by the Union Cabinet on October 25, 2011. In July 2015, NOFN was renamed BharatNet and revamped. The programme is implemented by Bharat Broadband Network Limited (BBNL), a Special Purpose Vehicle under the Ministry of Communications, and is funded through the Universal Service Obligation Fund (USOF) — renamed "Digital Bharat Nidhi" (DBN) under the Telecommunications Act, 2023. The total Cabinet-approved outlay for BharatNet (Phase I and II) stands at ₹42,068 crore (exclusive of GST and local levies).
- Original approval: October 25, 2011 (as NOFN — National Optical Fibre Network)
- Renamed BharatNet: July 2015
- Implementing agency: Bharat Broadband Network Limited (BBNL) — SPV under Ministry of Communications
- Funding source: Universal Service Obligation Fund (USOF), renamed Digital Bharat Nidhi (DBN) under Telecommunications Act, 2023
- Total approved outlay: ₹42,068 crore (Phase I + II)
- Progress (as of 2025): 2,14,325 GPs connected; 6,93,303 km of optical fibre cable (OFC) laid
- Coverage target: 2.5 lakh gram panchayats
Connection to this news: The ₹2,432 crore Andhra Pradesh sanction is under the Amended BharatNet Programme (ABP, 2023 revision), which upgraded the architecture to ring topology (vs. linear in Phase I) to improve network resilience. Andhra Pradesh's 13,426 GPs represent a significant share of its rural connectivity gap.
Universal Service Obligation Fund (USOF) and Digital Bharat Nidhi
The Universal Service Obligation (USO) was established under the Indian Telegraph Act, 1885, to ensure affordable access to telecom services in rural and remote areas. The USOF was given a statutory basis under the Indian Telegraph (Amendment) Act, 2003. It is funded by a 5% Universal Service Levy (USL) charged on the Adjusted Gross Revenue (AGR) of all telecom service providers. Under the Telecommunications Act, 2023, and the Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024, USOF was renamed "Digital Bharat Nidhi" (DBN). BharatNet is the largest single programme funded through DBN/USOF.
- USO legal basis: Indian Telegraph Act, 1885; statutory basis under Telegraph (Amendment) Act, 2003
- Funding mechanism: 5% Universal Service Levy (USL) on Adjusted Gross Revenue (AGR) of telecom operators
- Renamed to: Digital Bharat Nidhi (DBN) — Telecommunications Act, 2023 and DBN Rules, 2024
- Administered by: Department of Telecommunications (DoT), Ministry of Communications
- Primary use: Rural broadband infrastructure, mobile connectivity in unserved areas, undersea cables
- BharatNet is the largest programme funded through USOF/DBN
Connection to this news: The ₹2,432 crore sanction for Andhra Pradesh is drawn from the USOF/Digital Bharat Nidhi corpus. Understanding the funding mechanism is important for UPSC — it explains why telecom operators' AGR disputes (like the Vodafone/Airtel AGR case) have fiscal implications for rural broadband programmes.
Amended BharatNet Programme (ABP): Architecture and Upgrade
The Amended BharatNet Programme (ABP), approved in August 2023, is a comprehensive revision of BharatNet that addresses structural weaknesses identified in earlier phases. The key architectural upgrade is the shift to ring topology (OFC network forming closed loops) from the earlier linear/radial topology — ring topology ensures that if one fibre segment breaks, data can be rerouted through the alternative path, improving reliability. The ABP also mandates strict service level agreements (SLAs) including high uptime guarantees, focus on last-mile connectivity (the final link from the GP optical node to the household or school), and integration with government service delivery (CSCs, health centres, schools).
- ABP approved: August 2023
- Key upgrade: Ring topology OFC network (redundant path, higher resilience)
- Coverage target: 2.64 lakh gram panchayats in ring topology across India
- Key focus: Last-mile access + 98% network uptime SLA
- Applications enabled: e-health, e-education, Common Service Centres (CSCs), e-governance
- Andhra Pradesh rollout: 13,426 village panchayats; sanctioned amount: ₹2,432 crore
Connection to this news: The 98% uptime commitment in the Andhra Pradesh MoC is a specific SLA requirement of the ABP — a shift from earlier BharatNet phases where poor uptime (sometimes below 50% in some states) rendered the network unusable for real-time services like telemedicine.
Key Facts & Data
- Sanctioned amount for Andhra Pradesh: ₹2,432 crore
- Gram panchayats to be covered: 13,426 (Andhra Pradesh)
- Target network uptime: 98%
- Signing location: Amaravati (Andhra Pradesh's new capital)
- Key attendees: AP CM N. Chandrababu Naidu; Union Minister of Communications Jyotiraditya Scindia
- Programme: Amended BharatNet Programme (ABP) — approved August 2023
- ABP architecture: Ring topology OFC (vs. linear in Phase I)
- ABP national coverage target: 2.64 lakh gram panchayats
- BharatNet original approval: October 25, 2011 (as NOFN)
- BharatNet renamed: July 2015
- Implementing agency: Bharat Broadband Network Limited (BBNL)
- Funding: Digital Bharat Nidhi (DBN) — renamed from USOF under Telecommunications Act, 2023
- DBN funded by: 5% Universal Service Levy on telecom operators' AGR
- Total BharatNet outlay (Phase I+II): ₹42,068 crore
- GPs connected nationally (as of 2025): 2,14,325; OFC laid: 6,93,303 km