TRAI releases Draft Telecommunication Tariff (71st Amendment)

The Department of Telecommunications (DoT) in India has raised concerns regarding the slow growth of the PM-WANI scheme, which aims to expand public Wi-Fi access across the country. The DoTโ€™s communication to the Telecom Regulatory Authority of India (TRAI) highlighted that the schemeโ€™s proliferation is significantly below its targets. A major factor contributing to this shortfall is the high cost of backhaul internet connectivity imposed by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs). In response, TRAI has proposed new tariff regulations to facilitate the growth of this initiative.

Challenges Facing the PM-WANI Scheme

The PM-WANI scheme, launched to enhance public internet access, has faced several challenges since its inception. One of the primary issues is the exorbitant costs associated with backhaul internet connectivity. TSPs and ISPs often require Public Data Offices (PDOs) to connect public Wi-Fi access points through expensive leased lines. This requirement creates a financial barrier for PDOs, making it difficult for them to establish and maintain Wi-Fi hotspots.

The DoTโ€™s communication to TRAI emphasizes that these high costs have hindered the widespread adoption of the PM-WANI scheme. As a result, many potential PDOs are reluctant to invest in the infrastructure needed to provide public Wi-Fi services. This situation has led to a significant gap between the envisioned targets of the PM-WANI initiative and the actual number of operational hotspots across the country.

To address these challenges, TRAI has taken steps to revise the tariff structure for broadband services provided to PDOs. By aligning these tariffs with retail broadband rates, TRAI aims to reduce the financial burden on PDOs and encourage more stakeholders to participate in the PM-WANI scheme.

TRAIโ€™s Proposed Tariff Revisions

On August 23, 2024, TRAI released the Draft Telecommunication Tariff (70th Amendment) Order, 2024. This draft proposes that the tariff for broadband services provided to PDOs under the PM-WANI scheme be aligned with the retail broadband tariffs for Fiber to the Home (FTTH) services. TRAI has invited comments and counter-comments from stakeholders on this proposed framework.

In a subsequent move on September 16, 2024, the DoT amended the PM-WANI framework. This amendment removed the requirement for PDOs to enter into commercial agreements with TSPs for internet connectivity. Furthermore, it allows PDOs to network up to 100 access points to establish a single Wi-Fi hotspot. These changes are expected to simplify the process for PDOs and promote the establishment of more public Wi-Fi hotspots.

In light of these developments, TRAI has proposed a revised Draft Telecommunication Tariff (71st Amendment) Order. This new proposal stipulates that the broadband tariff for PDOs under the PM-WANI scheme should not exceed twice the tariff applicable for retail broadband services of corresponding capacity offered by service providers. This measure aims to create a more balanced relationship between PDOs and service providers, fostering a sustainable ecosystem for public Wi-Fi access.

Future Implications for Public Wi-Fi Access

The proposed tariff revisions are part of a broader strategy to support the effective proliferation of PM-WANI hotspots. The initiative aligns with the goals outlined in the National Digital Communications Policy, 2018, and the Bharat 6G Vision. These policies aim to deploy 50 million public Wi-Fi hotspots by 2030, significantly enhancing internet accessibility across India.

The draft amendment has been made available on TRAIโ€™s official website, and stakeholders are encouraged to provide their feedback by January 31, 2025. Counter-comments will be accepted until February 7, 2025. This open consultation process allows various stakeholders, including PDOs, TSPs, and ISPs, to voice their opinions and contribute to the final framework.

As India moves towards a more connected future, the success of the PM-WANI scheme will play a crucial role in bridging the digital divide. By addressing the financial barriers faced by PDOs and fostering collaboration between service providers, the government aims to create a robust public Wi-Fi ecosystem that benefits all citizens.

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