TRAI Prescribes Cap For Tariffs Charged to PDOs Under PM-WANI Scheme

Telecom regulator TRAI on Monday prescribed a tariff framework for the PM-WANI scheme, capping the connectivity rates offered by various service providers to Public Data Offices (PDOs) at up to twice the tariffs applicable to retail subscribers of Fiber to the Home (FTTH) broadband plans.

Telecom and internet service providers at times require PDOs to connect public Wi-Fi access points using expensive Internet Leased Lines, in the name of commercial agreements.

Telecom Regulatory Authority of India (TRAI) said the new pricing framework has been designed to "appropriately balance the interests of all stakeholders" by ensuring affordability for small-scale Public Data Offices (PDOs) while also providing reasonable compensation for the broadband connection to the service providers.

Essentially, the Prime Minister's Wi-Fi Access Network Interface or PM-WANI framework aims to drive the proliferation of internet services by setting up public Wi-Fi Hotspots in the country.

Under the PM-WANI framework, Public Data Offices (PDOs) establish, operate and maintain WANI-compliant Wi-Fi Hotspots and deliver internet services to subscribers. PDOs need to partner with a Public Data Office Aggregator (PDOA) to deliver internet services; PDOAs act as aggregators and perform the functions relating to authorisation and accounting.

"To ensure a balanced and inclusive approach, TRAI prescribes the following tariff framework for the PM-WANI scheme...Every service provider providing retail Fiber to the Home (FTTH) broadband services shall offer all of its retail FTTH broadband plans upto 200 Mbps to the PDOs under the PM-WANI scheme, at a tariff not exceeding twice the tariff applicable to the retail subscribers for the corresponding FTTH broadband plan of the bandwidth (capacity) offered," according to TRAI.

Department of Telecommunications (DoT) had reached out to TRAI highlighting that the proliferation of the PM-WANI scheme was significantly below envisaged targets. Among the reasons cited for this low proliferation of PM-WANI was the high cost of internet connectivity charged by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs).

It was also stated that TSPs and ISPs often required Public Data Offices (PDOs) to connect public Wi-Fi access points using expensive Internet Leased Lines under the name of commercial agreements, TRAI noted.

"In this regard, TRAI issued the Draft Telecommunication Tariff (70th Amendment) Order, 2024, on August 23, 2024, proposing that the tariff for broadband services provided to PDOs under the PM-WANI scheme aligned with retail broadband Fiber to the Home (FTTH) tariffs," the release said.