I think most ISPs specially BSNL & MTNL are actually abusing 80% Bandwidth rule. They provide 80% of advertised speed, no more than that. I am sure if TRAI had set 70% guideline. They would've been providing only 70% of advertised speeds. Airtel broke away with this stupid norm. They provide at least 100% of advertised speeds. In most cases, they give well above advertised speeds. In my area, Airtel gives 20% above advertised speeds.
However, there are some problems with 16 Mbps plans. Airtel having recently upgraded to 16 Mbps plan do not provide full speeds. Hopefully they will also solve this in future and give full speeds as they do on rest of their plans.
However, on the topic. I think BSNL has gotten really desperate. 2 Crore customers lost within 1 year. 20 Lakh Landline/Broadband customers lost within 1 year. 7800 Crore Rupee of Losses in just 1 year. BSNL is in pretty bad shape.
This move of BSNL to increase pre FUP minimum speed is a silly move. It actually shows BSNL has run out of moves to recapture Broadband market. BSNL can't innovate their Tariff plans. They cannot provide good QoS. They can't provide good CC and technical support.
I think BSNL is game over. If RJio comes up with good plans. BSNL will go into much deeper losses. Don't know about future of BSNL when that happens.