Trai proposes capping data rates under PM Wani
PM-Wani initiative, the telecom regulator has proposed capping broadband connectivity costs of Wi-Fi service providers or `public data offices’ (PDOs) at twice the applicable rate for retail home broadband services.
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The regulator’s call disregards carriers’ apprehensions that lowering such broadband connectivity costs would allow PDOs to make money, riding on expensive network infrastructure built by telcos, denting the latter’s revenues.
On Wednesday, the Telecom Regulatory Authority of India (Trai) said its proposal to cap the rates charged from PDOs would incentivise and compensate operators to expand their support for PDOs.
Such pricing, it added, also recognised that PDOs act as “resellers of bandwidth” and have potential to generate revenue from multiple customers.
The regulator’s logic is that rationalisation of broadband connectivity costs for WiFi service providers can break the logjam and finally result in PM-Wani gaining traction more than four years after its launch. It, though, added that the proposed pricing arrangement may be reviewed after two years.
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