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TRAI Caps FTTH Tariffs for PM-WANI Public Wi-Fi to Boost Connectivity

The Telecom Regulatory Authority of India (TRAI) today released its Telecommunication Tariff (71st Amendment) Order, 2025, introducing a crucial pricing framework designed to significantly enhance the Prime Minister’s Wi-Fi Access Network Interface (PM-WANI) scheme. This move aims to accelerate the proliferation of public Wi-Fi hotspots across the country by rationalizing the cost of internet connectivity for Public Data Offices (PDOs).

Under the new regulations, every service provider offering retail Fiber to the Home (FTTH) broadband services must now offer all of their retail FTTH broadband plans up to 200 Mbps to PM-WANI PDOs at a tariff not exceeding twice the rate applicable to their regular retail subscribers for the corresponding FTTH broadband plan.

This decision comes after extensive deliberations and addresses a key impediment to the PM-WANI Wi-Fi scheme’s growth: the high cost of backhaul internet connectivity often imposed by Telecom Service Providers (TSPs) and Internet Service Providers (ISPs) on PDOs.

The Department of Telecommunications (DoT) had previously highlighted that this high cost, often requiring expensive Internet Leased Lines (ILL) under commercial agreements, was a major factor discouraging small-scale PDOs from participating.

In a significant prior amendment on September 16, 2024, the DoT had already removed the requirement for PDOs to enter commercial agreements with TSPs for internet connectivity, further paving the way for this tariff rationalization.

TRAI’s new pricing framework is carefully designed to strike a balance between ensuring affordability for small-scale PDOs, thereby enhancing their sustainability and viability, and providing reasonable compensation for the broadband connection to the service providers. The Authority noted that PDOs function as bandwidth resellers, making it logical for them to have a different tariff structure than individual retail consumers.

The proposed framework also considers the prevailing market scenario, the current adoption levels of PM-WANI Wi-Fi services, and future growth potential. By aligning with these considerations, TRAI aims to facilitate the orderly, sustainable, and inclusive growth of the public Wi-Fi ecosystem under the PM-WANI initiative, ultimately contributing to broader national digital connectivity goals, including the deployment of 50 million public Wi-Fi hotspots by 2030 under the National Digital Communications Policy, 2018, and Bharat 6G Vision.

Also read: Viksit Workforce for a Viksit Bharat

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