TRAI Proposes Lowering Broadband Fees for Public WiFi Services

Telecom regulator Trai has suggested reducing broadband connection fees for public data offices (PDOs) to match those of retail users. This move aims to boost the number of public Wi-Fi spots, which currently fall short of government targets. The proposal is part of the draft Telecommunication Tariff Seventh Amendment Order, 2024.

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Comparison of Tariffs

In its explanatory note, Trai highlighted that the annual cost of a 100 Mbps internet leased line (ILL) is 40-80 times higher than a 100 Mbps fibre-to-the-home (FTTH) broadband connection for retail users. This disparity makes it difficult for small-scale units like local shops and retailers to afford high backhaul rates.

The authority believes that these small-scale PDOs have low revenue potential and do not require an ILL connection. Therefore, Trai proposes that PDOs under the PM-WANI scheme should be charged at the same rate as retail FTTH connections for similar capacities.

Review Period

The draft states that this proposal will be reviewed two years after its implementation. This review will help assess the impact of the new tariff structure on the proliferation of public Wi-Fi hotspots.

Government Targets

The National Digital Communications Policy, 2018, under the Connect India mission, aimed to deploy 5 million public Wi-Fi hotspots by 2020 and 10 million by December 2025. These targets were set to create a robust digital communication infrastructure across the country.

However, as of November 2022, the Department of Telecom (DoT) informed Trai that the number of public Wi-Fi hotspots was significantly below these targets. One major reason cited was the high cost of backhaul internet connectivity charged by telecom operators and internet service providers.

Current Status

As of July 22, 2024, there were over 207,000 deployed PM-WANI Wi-Fi hotspots in India. Additionally, there were 199 PDO aggregators and 111 app providers involved in the scheme.

The proposed tariff reduction aims to make it more affordable for small-scale PDOs to offer public Wi-Fi services. This move is expected to increase the number of public Wi-Fi hotspots and help achieve government targets.

The proposal reflects Trai's commitment to enhancing digital connectivity across India. By making broadband more affordable for PDOs, Trai hopes to bridge the gap between current numbers and government targets for public Wi-Fi hotspots.

This initiative is part of a broader effort to create a robust digital communication infrastructure in India. The review period will provide an opportunity to assess the effectiveness of this approach and make necessary adjustments.