Business Line has an excellent article on Broadband network issues in India.
With BSNL and MTNL not willing to share their last mile, private players are left with two choices: fork out a colossal amount and lay a fresh last mile network or haggle with the local cable operators.
India had over 1.3 million broadband subscribers as on March 31, 2006 (still well behind the Telecom Regulatory Authority of India's target of 3 million by December 2005) out of which 4 lakh belonged to private players. BSNL had 5.86 lakh broadband subscribers and MTNL over 2 lakh. As of July 2006, TRAI figures show 1.70 million broadband subscribers; analysts say the private-public sector proportion must be roughly the same as in March.