TRAI Suggests a Cap on Broadband Tariffs for PM-WANI Growth

DoT cited the high cost of backhaul internet connectivity charged by TSPs (telecom service providers) and ISPs (internet service providers) as one of the reasons for this.

Highlights

  • The TRAI has suggested that a cap should be placed on broadband tariffs for PDOs (public data offices) under the PM-WANI scheme.
  • The broadband cost with PDOs should not exceed the tariff applicable for retail broadband (FTTH) services of the same capacity by twice the amount.
  • The Department of Telecommunications (DoT) had reached out to TRAI and expressed its disappointment over the low rate of PM-WANI proliferation over the set targets.

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trai suggests a cap on broadband tariffs

The Telecom Regulatory Authority of India (TRAI) has suggested that a cap should be placed on broadband tariffs for PDOs (public data offices) under the PM-WANI scheme. As per a release from TRAI, the broadband cost with PDOs should not exceed the tariff applicable for retail broadband (FTTH) services of the same capacity by twice the amount. The Department of Telecommunications (DoT) had reached out to TRAI (Telecom Regulatory Authority of India) and expressed its disappointment over the low rate of PM-WANI proliferation over the set targets.




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DoT cited the high cost of backhaul internet connectivity charged by TSPs (telecom service providers) and ISPs (internet service providers) as one of the reasons for this. Under the PM-WANI scheme, the government wants to bring high-speed broadband connectivity everywhere in the country through public Wi-Fi hotspots.

The pricing cap can be reviewed again after two years to see how its effect has been on the success of the scheme. TRAI said, "The Authority feels the tariff framework should be such that it promotes proliferation of PM-Wani, safeguarding the interests of PDOs, particularly smaller PDOs, ensuring their sustainability and viability within the ecosystem."

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The government had announced the PM-WANI scheme five years ago. Under the scheme, the target was to create 10 million or 1 crore public Wi-Fi hotspots by 2022 and further 50 million by 2030. Rural areas and underserved areas where internet is not easily available were targetted to be covered with high-speed broadband under PM-WANI. However, the government's targets have not realised. To ensure internet reached every corner of the country, the government encouraged shopkeepers, chaiwalas, kirana stores, and more to become public Wi-Fi providers or PDOs. The best thing is that these shops or vendors don't even need a permit or registration fee.

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