As stated by Union Information and Communication Minister Dayananidhi Maran From Jan 1st BSNL will upgrade all Broadband plans to 2MB. yes that right no more 256kbps, 512kpbs, 1 MB etc just one standard 2MB plan for broadband which means the intenet connection will be 8 time faster for everyone.

Union Information and Communication Minister Dayananidhi Maran today said the Center would “rewrite” the broadband policy, bidding adieu to 256 kbps speed limit and provide unlimited speed in January next.
Speaking after inaugurating Ericsson’s new research and development facility here, Mr Maran said as the country was moving towards an era of unlimited bandwidth, the policy was set for a major overhaul.
He said BSNL and MTNL were working on aggressive schemes to offer new bandwidth and unveil the same in January next.
This will mean goodbye to the present 256 Kbps speed,” he said.
Mr Maran said while increasing the bandwidth, the department also wanted to increase the penetration of personal computers, which was still below the desired level.

if you don’t believe look here on bsnl site. Also download limits have been increased a bit for different plans if not substantially. Notable difference is the increase of ridiculously low 250MB to 1GB for HOME Plan 250 (Still useless and is only good for checking your email). But hold your hats before you jump for joy this increase in Bandwidth doesn’t apply to the Unlimited plans which most tech savvy Internet users use. I remember how excited I was when Broadband was released in 2006 but what I and everyone realized was that it was not exactly broadband rather a crippled version of it. A lot of people had pointed out during that time that BSNL and other broadband Providers could easily provide faster speed without limitation on the downloads.

The true definition of broadband is an always on unlimited connection with a minimum speed of 256kbps

In fact when broadband was being offered for the first time there was no unlimited Plan it was Airtel who first started offering Unlimited Plan for below Rs. 1000 and BSNL was forced to offer unlimited plans as well to keep up with the Competition. Hopefully Airtel again offer these 2MB speed for their unlimited Broadband Plans since I find their customer care far better than BSNL. A good place to keep up with broadband news is the broadbandforum.in to find out which Broadband provider is suitable for your area.

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Thanks to Tech-buzz and Shankar for the Tip Off