Totally anti-competitive behavior, i'm sure this will be overturned in the courts. But thats the point isn't it, to give BSNL that little edge over the others.This has led to slow roll-outs, similar to BT in the UK. Where they have the extra excuse not to upgrade existing exchanges (hello DSL) as they dont perceive a return on the investment.
Yes, tht's unfair. The thing is also that somewhere TRAI is lax in fixing norms. The regulatory body doesn't 've powers to apply QoS norms hence the ISP's get away. If there was Qos over no. of things then issues like these would not happen altogether. The customer loses as he doesn't get the respect tht he deserves.