The company currently offers a minimum speed of 512kbps and the move is part of its efforts for revival.
BSNL is losing customers in mobile as well as landline to private operators. The company lost about 1.78 crore wireless and over 20 lakh wireline subscribers between March 2014 and March 2015. The losses for the firm stood at Rs 7,600 crore.
Given the hyper competition in the marker, BSNL's announcement may also let private operators to offer higher speed at lower cost. Sectoral regulator Telecom Regulatory Authority of India (TRAI) is also expected to soon redefine the definition of broadband speed, which is currently 512kbps.
Launching the scheme, telecom minister Ravi Shankar Prasad said that BSNL should have frequent interface with customers and the efforts taken today by increasing the internet definition should help in digital India initiative, which is more for poor.
"We have increased the internet speed four times... we have ensured 2Mbps is available at last mile, which is the customer premises starting October 1," BSNL CMD Anupam Shrivastava said.
Srivastava added that BSNL is on a revival path and the company has added about 15 lakh mobile customers in last few months as against 7-8 lakh subscribers per month