I am almost using BSNL for past 18 months & I can say that it gives good bandwith. At the time of booking they were providing at 256 kbps but now they have increased the speed upto 2mbps.
Fantastic work by BSNL as far as internet is concerned.
I have kept the BSNL(B-Fone) just for the sake of Internet. I opted for Home Plan 250 which provides 400 MB of data throughput and Rent of Rs.250/- per month plus I bought ADSL router provided by BSNL for Rs.1500/-. You can also opt for rent if you dont wish to purchase the router.
The rent will be around Rs.125 per month.
Most important thing is that your phone line will not be occupied while your internet is connected.
You can use your phone & surf the net at the same time.
The speed is amazing throwing way back other service providers like Tata Indicom, Reliance etc.