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State-run telco Bharat Sanchar Nigam Limited (BSNL) will provide Broadband connectivity to all the Panchayats at 256 kbps in the country by March 2012. The plans for the PSU were revealed by the Minister of State for Communications & Information Technology Sachin Pilot in Rajya Sabha.

He mentioned though BSNL would be working to bridge the prevailing gap in the penetration of broadband connectivity in India, the Universal Service Obligation Fund (USOF) has undertaken a number of Broadband Schemes for providing broadband services in rural and remote areas.

The Indian Telegraph Rules have been amended and stream IV has been added under the title “Provision of broadband connectivity to villages in a phased manner” to bring provisioning of broadband connectivity to the rural areas under the purview of the USOF.

Ongoing Scheme, “Rural Wireline Broadband Scheme”, USOF has signed an Agreement with BSNL on January 20, 2009 under the scheme to provide wire-line broadband connectivity to rural & remote areas by leveraging the existing rural exchanges infrastructure and copper wire-line network.

USOF is also working on Scheme for providing financial assistance by way of subsidy for the wireless broadband active infrastructure.

Furthermore USOF has identified 5000 villages which do not have terrestrial connectivity and is working out a scheme accordingly.