Reviving the PM-WANI Scheme

The Telecom Regulatory Authority of India (TRAI) has released the Telecommunication Tariff (70th Amendment) Order 2024 draft to revamp the PM-WANI (Prime Minister Wi-Fi Access Network Interface) scheme, which aims to boost the deployment of public Wi-Fi hotspots in India. Despite ambitious goals set under the National Digital Communications Policy 2018 and the Bharat 6G Vision, the number of public Wi-Fi hotspots in the country remains significantly lower than expected.

Status of Public Wi-Fi Hotspots

• The National Digital Communications Policy 2018 aimed to establish 10 million public Wi-Fi hotspots by 2022 under the "Connect India" mission. Further, the Bharat 6G Vision sets the goal of 50 million hotspots by 2030 to support the Digital India 2030 objectives.
• As of July 2024, the number of PM-WANI hotspots stands at 207,642, with only 199 Public Data Offices (PDOs) and 111 app providers operational. These figures fall well below the targets.
• Daily data usage per Wi-Fi hotspot has also decreased significantly, from an average of 1 GB in previous years to just a few MBs today.

Reasons for Poor Penetration

• High Backhaul Costs:
• The primary reason for the limited adoption of public Wi-Fi hotspots is the high cost of backhaul internet connectivity. Telecom Service Providers (TSPs) and Internet Service Providers (ISPs) charge excessively high rates for connecting Public Data Offices (PDOs) to the internet.
• Insistence on Expensive Internet Leased Lines (ILL):
• TSPs and ISPs often require PDOs to use Internet Leased Lines (ILL), which are significantly more expensive than regular Fibre-to-the-Home (FTTH) connections.
• ILL costs are 40 to 80 times higher than FTTH broadband connections, making it unaffordable for small shop owners to participate in the PM-WANI scheme.

Key Changes Proposed in the Telecommunication Tariff (70th Amendment) Order 2024

• Lower Cost Structure:
• The TRAI has proposed a more affordable tariff structure for PDOs under the PM-WANI scheme.
• Same Tariff as Retail Broadband:
• PDO tariffs will now be aligned with the rates applicable to retail FTTH broadband connections, significantly reducing the cost of backhaul internet for public Wi-Fi access points.
• Impact of the Changes:
• The revised cost structure is expected to encourage more small businesses to set up public Wi-Fi hotspots, increasing the penetration of PM-WANI hotspots and boosting digital connectivity across India.

Conclusion

The TRAI’s proposed amendments aim to reduce costs for PDOs, making it easier to deploy public Wi-Fi hotspots. This is a crucial step toward achieving the Digital India goals and expanding access to affordable internet services across the country.