The Telecom Regulatory Authority of India (TRAI) announced a new tariff framework for the PM-WANI scheme, which capped the connectivity rates for various service providers to Public Data Offices (PDOs) at up to twice the rates applicable to retail subscribers of Fiber to the Home (FTTH) broadband plans. They noted that telecom and internet service providers sometimes required PDOs to connect public Wi-Fi access points using costly Internet Leased Lines under commercial agreements. According to TRAI, the updated pricing framework was intended to "appropriately balance the interests of all stakeholders" by ensuring that small-scale PDOs could afford the services while also providing reasonable compensation to service providers for the broadband connections. The PM-WANI framework aims to promote the spread of internet services across the country by establishing public Wi-Fi hotspots.
What this means
Under this framework, PDOs are responsible for establishing, operating, and maintaining WANI-compliant Wi-Fi hotspots to deliver internet services to subscribers. It was highlighted that PDOs need to collaborate with Public Data Office Aggregators (PDOAs) to facilitate these services, with PDOAs managing functions related to authorisation and accounting.
TRAI specified that every service provider offering retail FTTH broadband services must provide all FTTH broadband plans up to 200 Mbps to the PDOs under the PM-WANI scheme at tariffs not exceeding twice the rates applicable to retail subscribers for the corresponding FTTH broadband plan.
Why TRAI took this step
The Department of Telecommunications (DoT) had previously contacted TRAI, expressing concerns that the growth of the PM-WANI scheme was significantly lagging behind anticipated targets. High internet connectivity costs imposed by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs) were cited as major factors contributing to the low adoption of PM-WANI. TRAI acknowledged that TSPs and ISPs often necessitated the use of expensive Internet Leased Lines for PDOs to connect public Wi-Fi access points under the guise of commercial agreements.
In response to these concerns, TRAI had issued the Draft Telecommunication Tariff (70th Amendment) Order, 2024, proposing that broadband service tariffs for PDOs under the PM-WANI scheme align with those of retail FTTH broadband services.
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Inputs from PTI
