TRAI's Proposal on Broadband Tariffs under PM-WANI

Aug. 24, 2024

Recently, TRAI has proposed a reduction in broadband rates for Public Data Offices (PDOs) under the PM-WANI scheme to make internet access more affordable and boost the program's success.

  • Background: The Prime Minister Wi-Fi Access Network Interface (PM-WANI) scheme was launched in 2020 which aims to democratise broadband access via public Wi-Fi hotspots. However, the program has faced challenges due to the high cost of connectivity charged by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs).
  • Current tariff issues:
    • PDOs have been charged up to ₹8 lakh annually for Internet leased lines, making the project economically unviable.
    • In contrast, personal broadband connections are available at rates as low as ₹300-400 per month.
  • TRAI's Solution: Proposed tariffs for PDOs under the PM-WANI scheme should be aligned with retail broadband (FTTH) rates to support small-scale PDOs like local shops, kiranawalas, and storekeepers.
  • TRAI plans to review the proposed tariff arrangement after two years, based on the scheme's progress.
  • Targets vs. Reality:
    • As of July 2024, there are 207,642 deployed PM-WANI Wi-Fi hotspots, far below the National Digital Communications Policy 2018 target of 5 million by 2020.
    • For Digital India 2030, the target is set at 50 million public Wi-Fi hotspots.
    • The average daily data usage per hotspot has dropped significantly, highlighting the need for tariff rationalization.

About PM-WANI Scheme:

  • Launch: Initiated by the Department of Telecommunications (DoT) in December 2020.
  • Objective: To provide affordable, high-speed internet connectivity, particularly in rural and remote areas, through a nationwide public Wi-Fi network.
  • PM-WANI Ecosystem Components:
    • Public Data Office (PDO): Sets up Wi-Fi hotspots and provides internet access. No license is required from DoT.
    • Public Data Office Aggregator (PDOA): Offers authorization, accounting services, and user interfaces for purchasing data plans and monitoring usage.
    • App Provider: Develops applications to help users locate and connect to nearby PM-WANI hotspots, facilitating easy internet access.
    • Central Registry: Managed by the Centre for Development of Telematics, maintaining records of App Providers, PDOs, and PDOAs.
  • Accessing PM-WANI Wi-Fi:
    • Users download an app to find available PM-WANI hotspots.
    • They can select a network, pay for the service, and access the internet until their balance runs out.