Kerala's KFON makes a rural splash, but pvt players a big threat

Quietly transformational

For teachers like Santhosh and students of the likes of high schoolers of Kuttichal, there is a visible change after the state-run Kerala Fiber Optic Network (KFON) reached their village.

“We still don’t have a mobile signal strong enough for a call, but we’re connected through WhatsApp now. The students are able to watch YouTube videos, access online content, and keep in touch with me daily. That was unimaginable even a year ago,” Santhosh told The Federal.

Reeshma R V Raj, another teacher from Valappara Community Study Centre Mulamoodu, Kottor had a similar story to narrate.

"As a teacher, I’ve seen its impact in the classroom — if a student has a doubt, I can quickly look it up online and give a clear explanation. In terms of banking too, KFON has enabled us to use digital payment platforms. Even my children now ask me to order things for them on commercial platforms—something that just wasn’t possible before due to the lack of network coverage," shared Reeshma.

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The impact of KFON in these underserved regions—tribal settlements, islands, and hilly interiors—has been quietly transformational. But in Kerala’s politically charged environment, even a public infrastructure project aimed at bridging the digital divide hasn’t gone untouched by controversy.

Political controversy

During its inception itself, Leader of the Opposition VD Satheesan had accused the KFON project of being mired in corruption, claiming irregularities in the awarding of contracts and fund usage. The government strongly denied the allegations, arguing that the accusations were baseless and politically motivated.

The Kerala High Court later cleared the project of wrongdoing, finding no substance in the corruption charges.

Though the dust from that episode has largely settled, it lingers in public memory—reminding many that even a broadband cable can become a battleground in Kerala’s bitter political rivalries.

The high court had observed that the Opposition can check the C&AG report when it is tabled, while dismissing the petition. Obviously, the Opposition will be waiting for the C&AG to submit the report for the said period later this year.

Growing digital divide

Meanwhile, the digital divide continues to widen, not just between rural and urban Kerala, but between those who can afford fast, private broadband and those still waiting for a basic connection.

In Kakkanad, Kochi — the state’s IT hub housing the Infopark and the Smart City — BSNL broadband users recently faced a 48-hour outage during the Buddha Poornima holiday weekend. With limited staff on call and no contingency system in place, thousands were left in the dark.

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“We couldn’t work, couldn’t contact service reps, nothing,” pointed out Arvind Menon, a tech worker. “Private players like Jio are ready to take over, they were at my doorstep immediately when the internet outage happened. And, many of us, especially older users and small businesses, still rely on BSNL. I am not sure how long it will go on like this,” Menon added.

Slow monopoly

The slow collapse of BSNL’s broadband services in Kerala has started creating a vacuum. And private ISPs—especially Reliance Jio—are stepping in to fill it, often on their terms. While Jio Fibre expands its footprint across towns and cities, it is also emerging as the sole viable provider in many places. Without competition or price regulation, this creeping monopoly is already raising alarm bells.

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Digital lifeline

That’s where KFON is trying to assert itself, not just as a provider of affordable broadband, but as a digital lifeline for public institutions, low-income households, and neglected regions.

So far, KFON has connected over 96,000 households — more than 42,000 of them in rural areas — and extended its network to 23,000 government offices. Over 9,000 Below Poverty Line (BPL) families have received free connections. In isolated areas like Valanthakad Island in Ernakulam or the tribal belts of Attappadi and Kottoor, KFON has succeeded where commercial providers have not even ventured.

But this success hasn’t been overnight. The state-owned Bharat Electronics Limited (BEL) was brought in to implement the project. KFON also roped in 3,773 local internet partners and leased out network capacity to nine commercial clients. The backbone, extending over 31,000 kilometres, is managed from Infopark Kochi, feeding into a robust ring-based architecture meant to ensure minimal downtime.

Digitally inclusive

The network was always envisioned as more than just a government utility, said Dr Santhosh Babu, KFON’s managing director.

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“KFON is not just about giving internet access,” he told The Federal.

“It’s about democratising access to knowledge, services, and economic opportunities. The long-term vision is to ensure that no citizen is digitally left behind,” he added.

In health and education, that vision is already showing signs of materialising. KIMSHEALTH, one of Kerala’s major private healthcare groups, uses KFON to maintain uninterrupted data links between its hospitals. Community study centres like the one in Valappara, deep in the Agasthyavanam forests, are now able to access online learning platforms for the first time.

KFON's hurdles

Still, the road ahead is not without hurdles. KFON has yet to scale at the speed required to rival private players, and bureaucratic bottlenecks persist. The controversy triggered by the Opposition last year, though legally resolved, did slow public perception and political backing at a critical time.

Moreover, the state must grapple with how to sustain such a public infrastructure model amid shrinking fiscal space and rising demands.

Rajeev S, a former BSNL engineer from Kochi who opted for a golden handshake in 2000, offered a more cautious perspective.

“So far, KFON seems to be doing well in its initial phase. But let’s not forget — there was a delay in the rollout. The government cited COVID, which is fair, but delays and red tape are part and parcel of most public sector initiatives,” he said.

“No government agency can really compete with giants like Reliance. They have access to cheap labour, deep pockets, and can afford to undercut prices to dominate the market. Ultimately, it will depend on how innovative and agile the government can be in managing and scaling this network if it’s to hold its own,” added Rajeev.

The worry many experts now voice is this: in the absence of a robust public option, Kerala could soon find itself at the mercy of private monopolies in internet services, just as it once did with telecom.

In this scenario, the WhatsApp messages Santhosh Kalathil sends to his students each day represent more than just lessons—they are a fragile connection to a more equitable digital future, one that hangs in the balance between public promise and private control.