Context:

The Telecom Regulatory Authority of India (TRAI) has released the Draft Telecommunication Tariff (71st Amendment) Order, 2025, which proposes the rationalization of broadband tariffs for Public Data Offices (PDOs) under the PM-WANI scheme.

Background and Need for Rationalization

The Department of Telecommunications (DoT) has noted that the PM-WANI scheme is underperforming due to high backhaul connectivity costs from Telecom Service Providers (TSPs) and Internet Service Providers (ISPs), who also require PDOs to use costly leased lines.

• Previous Measures: In August 2024, TRAI proposed aligning broadband services to PDOs with retail broadband (FTTH) tariffs. On 16 September 2024, DoT amended the PM-WANI framework, removing the need for PDOs to sign commercial agreements with TSPs and allowing up to 100 access points per hotspot.
• Revised Proposal: TRAI’s revised draft now proposes that the broadband tariff for PDOs should be capped at twice the retail broadband (FTTH) tariff for similar capacity, aiming to reduce costs and promote more public Wi-Fi hotspots.

Supporting National Digital Communication Goals

·        This tariff rationalization is aligned with the National Digital Communications Policy, 2018, and the Bharat 6G Vision, which target the deployment of 50 million public Wi-Fi hotspots by 2030. By addressing the high costs of connectivity, TRAI’s proposed measures aim to foster a sustainable ecosystem for PDOs and encourage greater participation in the PM-WANI scheme.

·        This initiative is expected to play a key role in facilitating the growth of public Wi-Fi infrastructure across the country, enabling more affordable and widespread internet access under the PM-WANI framework.

About Telecom Regulatory Authority of India (TRAI)

The Telecom Regulatory Authority of India (TRAI) was established on 20th February 1997 under the Telecom Regulatory Authority of India Act, 1997, passed by the Parliament of India.

·        TRAI was set up to regulate telecom services in the country, including the fixation and revision of tariffs, a responsibility that was previously vested in the Central Government.

Mission and Objectives

·        TRAI's mission is to create favorable conditions for the growth of telecommunications in India.

·        It aims to enable India to take a leading role in the emerging global information society.

·        To achieve this, TRAI works towards fostering a fair and transparent policy environment that ensures a level playing field and facilitates healthy competition within the telecom sector.

PM-WANI:

Launched in December 2020 by the Department of Telecommunications, the PM-WANI scheme aims to expand public WiFi hotspots across India, particularly in rural areas, to enhance internet access and bridge the digital divide.

·        The initiative targets affordable connectivity for underserved communities and promotes job creation in small businesses.

·        The PM-WANI ecosystem comprises four components:

• • Public Data Offices (PDOs),
  • Public Data Office Aggregators (PDOAs),
  •  App Providers, and
  • a Central Registry.

·        PDOs set up Wi-Fi hotspots, while PDOAs manage authorization and accounting. App providers display nearby hotspots, and the Central Registry oversees the network’s operations.