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(THE GIST OF PIB) TRAI's Proposal on Broadband Tariffs under PM-WANI

(AUGUST-2024)

TRAI's Proposal on Broadband Tariffs under PM-WANI

Recently, TRAI has proposed a reduction in broadband rates for Public Data Offices (PDOs) under the PM-WANI scheme to make internet access more affordable and boost the program's success.

Background:

The Prime Minister Wi-Fi Access Network Interface (PM-WANI) scheme was launched in 2020 which aims to democratise broadband access via public Wi-Fi hotspots. However, the program has faced challenges due to the high cost of connectivity charged by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs).

Current tariff issues:

PDOs have been charged up to ₹8 lakh annually for Internet leased lines, making the project economically unviable.
In contrast, personal broadband connections are available at rates as low as ₹300-400 per month.
TRAI's Solution: Proposed tariffs for PDOs under the PM-WANI scheme should be aligned with retail broadband (FTTH) rates to support small-scale PDOs like local shops, kiranawalas, and storekeepers.
TRAI plans to review the proposed tariff arrangement after two years, based on the scheme's progress.

Targets vs. Reality:

As of July 2024, there are 207,642 deployed PM-WANI Wi-Fi hotspots, far below the National Digital Communications Policy 2018 target of 5 million by 2020.
For Digital India 2030, the target is set at 50 million public Wi-Fi hotspots.
The average daily data usage per hotspot has dropped significantly, highlighting the need for tariff rationalization.