The next significant assignment that the Telecom Regulatory Authority of India (TRAI) will be working on is to develop “pay-as-you-go” public data offices (PDOs) across the country. The project is intended to bring broadband connectivity to price-sensitive consumers in Tier I and Tier II cities as well as rural areas. According to sources, PDOs will be offering small-sized data packs at about Re 0.02 per MB. In comparison, existing mobile network providers like Vodafone, Airtel and Reliance Communications (RCOM) charge upwards of Re 0.23 per MB, which is about ten times the cost of TRAI’s proposed Wi-Fi plan.
TRAI’s announcement of the project comes in the wake of the growing data requirements and an increasing number of IoT devices coming online, thereby leading to severe network congestion. Wi-Fi hotspots can help operators plug coverage gaps and offload cellular data to reduce traffic. More importantly, they can play a paramount role in creating a digitally inclusive society by providing affordable and high speed broadband to a significant section of the population, which is still unconnected. Global technology giants such as Google and Facebook have also opted for Wi-Fi hotspots as a preferred route to deploy broadband networks in India.
So far, the public Wi-Fi segment in the country has had a disappointing record. There are currently over 31,000 public Wi-Fi hotspots in the country, compared to 13 million in France and 10 million in the US. Companies in India have lacked in both setting up public Wi-Fi hotspots and rolling out adequate optic fibre cable networks, which could have acted as a dependable backhaul option. Challenges in securing clearances from public authorities, significant marketing budgets, extensive distribution channel set-up requirements, disconnected value chains and unviable business models have impeded the proliferation of public Wi-Fi hotspots in the country.
On paper, TRAI’s model of PDOs seems promising. Wi-Fi access points can be set up and maintained by small entrepreneurs while device manufacturers, payment companies, ISPs and telecom operators can contribute the remaining links. The concept has elicited a strong response from all players in the value chain, particularly tech start-ups. The success of the PDOs will, however, hinge on the formulation of an appropriate revenue sharing arrangement among all the parties since they will operate in a multiprovider ecosystem, and on an easy regulatory environment. Otherwise, this wellintended concept may well fail to take off.
