In 2010, Mysore became the second Wi-Fi-enabled city in the world after Jerusalem. Since then, many state governments and the complementary private industry have shown a keen interest in promoting public Wi-Fi projects in India. The increasing use of mobile data services has played a crucial role in this. However, the segment is experiencing difficulty in securing an edge over broadband services, mainly because of the inadequate service availability and uptake.

However, it is believed that the Wi-Fi segment will see increased activity in the coming months with the government?s announcement of the Digital India programme. Many private operators have also been offloading data over Wi-Fi and have either rolled out Wi-Fi networks recently or are planning to do so in the near future.

Government initiatives

The Digital India programme aims to provide internet connectivity at the grassroots level and digitally empower the country?s citizens. To this end, alongside the National Optical Fibre Network project, which focuses on improving the broadband infrastructure, the government has launched an initiative to supplement internet demand with the roll-out of Wi-Fi networks across the country.

For the project, the Department of Telecommunications (DoT) has identified 705 tourist locations across 45 cities that are to be provided public Wi-Fi services. The programme will be implemented in phases and the deadline for its completion has been set as end-2018. At present, the municipal corporation of each city has been asked to identify 10 economically viable public places for Wi-Fi connectivity.

The short-term plan, according to the Ministry of Communications and IT, is to provide Wi-Fi services to select cities that are tourist destinations as well as those that have populations of over 1 million by December 2015. The government is also looking for a speedy roll-out of Wi-Fi networks at select public places in the top 25 cities by June 2015. DoT plans to free up spectrum for Wi-Fi services in the 60 GHz band. It is also planning to finance the capital required for the implementation of these services with the Universal Service Obligation Fund, while meeting operational expenses through user fees.

Meanwhile, DoT has also initiated talks with telecom operators to their networks for these services. These operators will then be allowed to use spectrum in the 60 GHz band without any licence fee or spectrum charge.

Wi-Fi coverage by operators

Telecom players have realised the crucial role played by Wi-Fi hotspots in public areas. Operators have been dealing with increased congestion in their networks owing to high mobile data uptake and smartphone penetration. Wi-Fi offers them the benefit of cheaper network roll-outs and the opportunity to maintain the buoyancy of their revenues. To this end, several operators have firmed up their Wi-Fi roll-out strategies and launched the service.

A look at select Wi-Fi services launched in 2014:

  • Bharti Airtel, in partnership with the Telangana government, launched a pilot public Wi-Fi service in 17 locations in Hyderabad in October. This gave users access to free internet up to a data limit of 750 MB per day. In November, Airtel also launched a free Wi-Fi service in two West Bengal government-run air-conditioned buses in Kolkata, which will further be extended to other city buses after feedback on the service is received.
  • In May, Sistema Shyam TeleServices Limited tied up with Rapid Metro Rail Gurgaon Limited to provide free Wi-Fi services on all trains running on the six-station-long corridor.
  • In November, TATA DOCOMO, in association with the New Delhi Municipal Council, introduced free Wi-Fi in Connaught Place.
  • Videocon Telecom partnered with Huawei for the launch of Wi-Fi hotspots in the Punjab circle.
  • Tikona launched a Wi-Fi network at the Maharana Pratap Interstate Bus Terminus, in partnership with the Delhi Transport Corporation.
  • Vodafone India introduced a Wi-Fi zone for its customers at the Belvedere Rapid Metro station in Gurgaon as a part of a branding exercise. In December, the operator launched similar services in Delhi?s Khan Market. The company also plans to conduct pilot projects for establishing Wi-Fi hotspots for subscribers in several metros.

The way forward

According to market research firm PwC, India is set to witness a significant spurt in Wi-Fi hotspots, and the firm rated public Wi-Fi in the top five key trends for 2015. The government?s initiatives have already provided the necessary boost. In addition, considering the unaffordable prices and scarcity of spectrum in the upcoming auctions, Wi-Fi networks will remain a major part of operators? network roll-out plans in the next few years. Public Wi-Fi systems hence have a promising future in a country where data usage is growing at an exponential rate.