The Hindu Business Line has a write-up, albeit with no conclusive answers, on why VSNL and Reliance - both companies backed by the two largest business families in the country - are yet/unable to make their big push into the broadband sector.
Reliance Infocomm has barely any retail broadband customers. Its metro-ethernet plan involved bringing fibre right to the buildings; the company has wired up thousands of buildings across the country.
However, this is largely for commercial localities and for those residential localities largely populated by high net worth individuals from whom one can recover the cost of laying such a network. Fibre-to-the-Home is expensive and can be viable in very few localities, say officials with both VSNL and Reliance Infocomm.
Full story: The Hindu Business Line.