BSNL will invest about Rs 20 billion to augment its broadband infrastructure in urban and rural areas. While Rs 12-15 billion has been earmarked for expanding broadband networks in the urban areas, about Rs 5 billion will be spent in the rural areas.

The company is planning to improve its broadband connectivity speed from 256 kbps to up to 2 Mbps at an existing tariff of Rs 250 per month. The PSU may also increase its port capacity by 5 million ports from its existing network of 1 million.

Meanwhile, the service provider has entered into a franchisee agreement with Goldstone Technologies for providing IPTV, video on demand, and interactive gaming services to the latter's Hyderabad customers.