TRAI Caps Internet Rates For Public Wi-Fi Vendors
Many telecom companies were offering only expensive leased-line connections to PDOs, treating them as large commercial clients.
To strengthen the PM-WANI initiative, the telecom regulator has proposed that the cost of broadband connectivity for Wi-Fi service providers or public data offices be capped at no more than twice the retail rate for home broadband services, according to a notification.
This follows concerns raised by the Department of Telecommunications about the poor adoption of the PM-WANI scheme, which aims to expand public Wi-Fi access across the country through local vendors. High connectivity costs and restrictive contracts were identified as major obstacles. Many telecom companies were offering only expensive leased-line connections to PDOs, treating them as large commercial clients.
Moreover, regional broadband internet service providers were charging arbitrary and high costs to local WiFi vendors or WiFi shops like tea stalls, grocery stores, paan shops and more which could run into lakhs. This move makes internet being provided to PDOs by ISPs cheaper and more affordable.
The latest amendment to the Telecommunication Tariff Order is meant to bring parity between home users and public Wi-Fi providers. ISPs like Hathway, ACT, Spectra etc are now required to extend retail broadband plans to these vendors at regulated prices, without demanding licences or commercial contracts.
The DoT had already removed the requirement for PDOs to enter formal agreements with telecom firms last year. TRAI's move follows public consultations and industry feedback over several months.
The new cap is intended to help small businesses—such as tea stalls, grocery stores, and paan shops—offer affordable internet to the public. TRAI has said it will monitor data usage by PDOs and may revise the framework based on future trends.
While the rule addresses cost issues, it also highlights the broader challenges facing the PM-WANI initiative. The scheme, launched with the aim of decentralising internet access through local entrepreneurs, has so far struggled to scale meaningfully. Whether this change spurs real growth remains to be seen.
