Trai proposes reduction in high internet costs by telcos, ISPs under PM Wani

Contact Counsellor

Last Updated25/08/2024

A high bandwidth cost for PDOs does not make a viable business owing to higher costs and less revenue. Data sachets under PM Wani are being provided at Rs 5-10 per day.

In a move to invigorate the Prime Minister Wi-Fi Access Network Interface (PM-WANI) programme, the Telecom Regulatory Authority of India (TRAI) has proposed a significant reduction in the broadband connection rates charged by telecom companies and Internet service providers (ISPs) from Public Data Offices (PDOs).
This initiative aims to make public Wi-Fi hotspots more accessible and affordable, thereby accelerating India's digital inclusion efforts.

The PM-WANI programme, launched in 2020, was envisioned to democratize internet access by deploying public Wi-Fi hotspots across the country. These hotspots are managed by PDOs, which include local shops, retailers, and other small businesses, providing last-mile connectivity to the public.
However, the programme has struggled to gain traction, largely due to the prohibitively high costs associated with Internet leased lines provided by telcos and ISPs.

TRAI's proposal, part of the draft Telecommunications Tariff (70th Amendment) Order, 2024, seeks to align the tariffs charged to PDOs with those for retail broadband connections, such as Fiber to the Home (FTTH) services.
The proposed reduction is expected to make it financially viable for small-scale PDOs to operate, thereby expanding the reach of the PM-WANI programme.
Current Challenges: Industry executives have pointed out that telcos and ISPs currently charge up to ₹8 lakh annually for Internet leased lines to PDOs, which is significantly higher compared to the rates for personal broadband use.

TRAI highlighted that the cost of a 100 Mbps Internet leased line is currently 40 to 80 times higher than that of a comparable retail broadband connection.
This disparity has led to a reduction in the viability of the PM-WANI scheme, with average data usage per hotspot dropping to just a few megabytes daily, compared to the 1 GB per day recorded previously.

The PM-WANI programme is crucial for achieving the targets set by the National Digital Communications Policy, 2018, which aimed to deploy 5 million public Wi-Fi hotspots by 2020 and 10 million by December 2025. With only 207,642 hotspots deployed as of July 2024, the programme is significantly behind schedule.
The Bharat 6G Vision has further set an ambitious goal of 50 million public Wi-Fi hotspots by 2030, underscoring the need for immediate intervention to revitalize the initiative.