VSNL (Tata indicom) has been providing DSL services (therefore through
phone line) for a while now. Airtel started this (DSL) some time ago too and even in my office area they provide the service. As does MTNL. Reliance also provides broadband service but in some areas.
TATA/AIRTEL provide bundled services which includes land line and internet.
The only thing going for TATA and for AIRTEL is that they provide unlimited plans (however sucky). But MTNL rules.
The reason why mtnl those plans are in delhi and not in mumbai is because airtel has a good presence there. So it was competitive and nothing else. Now that airtel is in mumbai too and gaining ground, its a matter of time before mtnl will come up with unlimited plans.
in any case its only a couple of years before this whole metered download bull is done away with.
thats true there will days with 2 mb unlimited considered as broadband within a year or 2 but airtel is just starting there service in mumbai not fully established in mumbai what you said is true airtel has a good presence in delhi as considered in mumbai & trai has suggested everyone to switch over to dsl than cable internet