The eight-member committee, which includes former Deity Secretary J Satyanarayana and former IT-ITeS industry body Nasscom Presidents Kiran Karnik and Som Mittal, is likely to submit its report by month-end or March, a senior government official said.
The panel has also been asked to recommend best possible business models that can be leveraged to rope in the private sector.
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Universal Service Obligation Fund (USOF) Administrator Aruna Sundarajan is also a member of the committee that was set up earlier this year, a senior government official said.
USOF is funding the ambitious NOFN project, which aims to connect 2.5 lakh gram panchayats with broadband by December 2016 with an estimated cost of Rs 30,000 crore.
"The panel has to recommend ways so that NOFN can be fast tracked and suggest technology options that can be used for reducing costs and enhancing operations. Also it is to brainstorm on the role of state governments in it," the official said.
The panel will recommend ways for roping in the private sector so that a sound model can be developed to ensure delivery of various services to people especially in rural areas.
"Private sector firms in areas like health, education and entertainment are the focus areas," the official added.
On state government's role, the official said there are issues like the right of way, role states have to play in the laying of optic fibre as well as providing buildings in rural areas to set up operation centres and Common Service Centres (CSCs), among others.
Aiming to increase broadband penetration in smaller cities, DoT is also planning to use Multiple System Operators and cable operators to provide broadband connectivity.
The idea is that cable TV provides last mile connectivity in almost all the tier I as well as II and III cities, barring a few areas, and this can provide cable operators with a new business model as also increase broadband penetration.
Government plans to provide broadband connectivity across India and while NOFN will cover the villages and this step will be to ensure Internet connectivity in cities and small towns.