Draft The Telecommunication Tariff (Seventieth Amendment) Order, 2024

DRAFT THE TELECOMMUNICATION TARIFF (SEVENTIETH AMENDMENT) ORDER, 2024 (________ OF 2024) New Delhi 23rd August 2024 World Trade Centre, Tower-F, Nauroji Nagar, New Delhi- 110029 1Stakeholders are requested to send their written comments on the Draft Telecommunication Tariff (Seventieth Amendment) Order, 2024 by 6th September 2024. Counter comments, if any, may be submitted by 13th September 2024. The comments and counter comments may be sent, preferably in electronic form to Shri. Amit Sharma, Advisor (Financial & Economic Analysis), TRAI, on the e-mail: fa@trai.gov.in. Comments and counter comments will be posted on TRAI’s website (www.trai.gov.in). For any clarification/information, please contact Shri. Amit Sharma, Advisor (F&EA), TRAI, at Tele no.: +91-11-20907772. 2TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART III, SECTION 4 TELECOM REGULATORY AUTHORITY OF INDIA DRAFT NOTIFICATION New Delhi, the …………, 2024 F. No. RG-(6)/2024-FEA-II ---- In exercise of the powers conferred upon it under sub- section (2) of section 11, read with sub-clause (i) of clause (b) of sub-section (1) of the said section, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), the Telecom Regulatory Authority of India hereby makes the following Order further to amend the Telecommunication Tariff Order, 1999, namely:- THE TELECOMMUNICATION TARIFF (SEVENTIETH AMENDMENT) ORDER, 2024 (No. .... of 2024) 1. (1) This Order may be called the Telecommunication Tariff (Seventieth Amendment) Order, 2024. (2) It shall come into force from the date of its publication in the Official Gazette. 2. In Schedule VI to the Telecommunication Tariff Order, 1999, the following item (5) and entry thereto shall be inserted, namely: - ITEM TARIFF (5) Tariff for PM-Wani scheme Tariff for Public Data Office under PM- Wani scheme shall be same as is applicable for retail broadband(FTTH) connection (Amit Sharma) Advisor (F&EA) 3Note - The Telecommunication Tariff Order, 1999 was published in the Gazette of India, Extraordinary, Part III, Section 4 under notification No. 99/3 dated 9th March, 1999, and subsequently amended as given below: - Amendment No. Notification No. and Date 1st 301-4/99-TRAI (Econ) dated 30.03.1999 2nd 301-4/99-TRAI(Econ) dated 31.05.1999 3rd 301-4/99-TRAI(Econ) dated 31.05.1999 4th 301-4/99-TRAI(Econ) dated 28.07.1999 5th 301-4/99-TRAI(Econ) dated 17.09.1999 6th 301-4/99-TRAI(Econ) dated 30.09.1999 7th 301-8/2000-TRAI(Econ) dated 30.03.2000 8th 301-8/2000-TRAI(Econ) dated 31.07.2000 9th 301-8/2000-TRAI(Econ) dated 28.08.2000 10th 306-1/99-TRAI(Econ) dated 09.11.2000 11th 310-1(5)/TRAI-2000 dated 25.01.2001 12th 301-9/2000-TRAI(Econ) dated 25.01.2001 13th 303-4/TRAI-2001 dated 01.05.2001 14th 306-2/TRAI-2001 dated 24.05.2001 15th 310-1(5)/TRAI-2000 dated 20.07.2001 16th 310-5(17)/2001-TRAI(Econ)dated 14.08.2001 17th 301/2/2002-TRAI(Econ) dated 22.01.2002 18th 303/3/2002-TRAI(Econ) dated 30.01.2002 19th 303/3/2002-TRAI(Econ) dated 28.02.2002 20th 312-7/2001-TRAI(Econ) 14.03.2002 21st 301-6/2002-TRAI(Econ) dated 13.06.2002 22nd 312-5/2002-TRAI(Eco) dated 04.07.2002 23rd 303/8/2002-TRAI(Econ) dated 06.09.2002 24th 306-2/2003-Econ dated 24.01.2003 25th 306-2/2003-Econ dated 12.03.2003 26th 306-2/2003-Econ dated 27.03.2003 27th 303/6/2003-TRAI(Econ) dated 25.04.2003 28th 301-51/2003-Econ dated 05.11.2003 29th 301-56/2003-Econ dated 03.12.2003 30th 301-4/2004(Econ) dated 16.01.2004 31st 301-2/2004-Eco dated 07.07.2004 32nd 301-37/2004-Eco dated 07.10.2004 33rd 301-31/2004-Eco dated 08.12.2004 34th 310-3(1)/2003-Eco dated 11.03.2005 35th 310-3(1)/2003-Eco dated 31.03.2005 36th 312-7/2003-Eco dated 21.04.2005 37th 312-7/2003-Eco dated 02.05.2005 38th 312-7/2003-Eco dated 02.06.2005 39th 310-3(1)/2003-Eco dated 08.09.2005 440th 310-3(1)/2003-Eco dated 16.09.2005 41st 310-3(1)/2003-Eco dated 29.11.2005 42nd 301-34/2005-Eco dated 07.03.2006 43rd 301-2/2006-Eco dated 21.03.2006 44th 301-34/2006-Eco dated 24.01.2007 45th 301-18/2007-Eco dated 05.06.2007 46th 301-36/2007-Eco dated 24.01.2008 47th 301-14/2008-Eco dated 17.03.2008 48th 301-31/2007-Eco dated 01.09.2008 49th 301-25/2009-ER dated 20.11.2009 50th 301-24/2012-ER dated 19.04.2012 51st 301-26/2011-ER dated 20.04.2012 52nd 301-41/2012-F&EA dated 19.09.2012 53rd 301-39/2012-F&EA dated 01.10.2012 54th 301-59/2012-F&EA dated 05.11.2012 55th 301-10/2012-F&EA dated 17.06.2013 56th 301-26/2012-ER dated 26.11.2013 57th 312-2/2013-F&EA dated 14.07.2014 58th 312-2/2013-F&EA dated 01.08.2014 59th 310-5 (2)/2013-F&EA dated 21.11.2014 60th 301-16/2014-F&EA dated 09.04.2015 61st 301-30/2016-F&EA dated 22.11.2016 62nd 301-30/2016-F&EA dated 27.12.2016 63rd 312-1/2017-F&EA dated 16.02.2018 64th 301-20/2018-F&EA dated 24.09.2018 65th 301-03/2020-F&EA dated 03.06.2020 66th C-3/7/(5)/2021-FEA-1 dated 27.01.2022 67th C-3/7/(5)/2021-FEA-1 dated 31.03.2022 68th C/(5)/2021-FEA-II dated 07.04.2022 69th C/(2)/2021-FEA-I dated 06.12.2022 Note – The Explanatory Memorandum explains the objects and reasons for the proposed Telecommunication Tariff (Seventieth Amendment) Order, 2024. 5EXPLANATORY MEMORANDUM 1. The Telecom Regulatory Authority of India (hereinafter referred to as the Authority) is established under the Telecom Regulatory Authority of India Act, 1997 (TRAI Act). Section 11(2) of TRAI Act provides that:- “Notwithstanding anything contained in the Indian Telegraph Act, 1885 (13 of 1885), the Authority may, from time to time, by order, notify in the Official Gazette the rates at which the telecommunication services within India and outside India shall be provided under this Act including the rates at which messages shall be transmitted to any country outside India. Provided that the Authority may notify different rates for different persons or class of persons for similar telecommunication services and where different rates are fixed as aforesaid the Authority shall record the reason therefor." 2. In the exercise of the above powers, the Authority has been notifying tariffs for various telecommunication services. 3. In March 2017, TRAI through its Recommendations on ''Proliferation of Broadband through Public Wi-Fi Networks''1 addressed various issues pertaining to bandwidth availability, regulatory and commercial constraints, demand side issues, authentication, and payment processes that potentially impact the uptake of public Wi-Fi. 4. In December 2020, Department of Telecommunication (DoT), vide its press release dated 09.12.20202, highlighted various economic3, financial and other benefits of the PM Wani scheme, such as: (i) It is expected that with Public Wi-Fi Broadband, the user experience and Quality of Service for Broadband will be improved significantly; (ii) This service will be specially useful in rural areas where Public Wi-Fi Hotspots are also being created under BharatNet; 1 https://trai.gov.in/sites/default/files/WiFi_Recommendation_09032017.pdf 2 https://pib.gov.in/PressReleasePage.aspx?PRID=1679342 3 https://pmwani.gov.in/wani 6(iii) Proliferation of Public Wi-Fi Hotspots will lead to increased employment for small and micro entrepreneurs and provide them with an additional source of income; (iv) The telecom and internet service providers will also benefit due to the sale of bandwidth to Public Data Office (PDOs); (v) Made in India Wi-Fi access points are envisaged to be encouraged for use in PM-WANI. 5. In November 2022, DoT in its communication to TRAI, inter alia, stated that the proliferation is quite limited and much below the targets. It was cited that one of the reasons for low proliferation of PM-Wani is the extremely high cost of backhaul internet connectivity charged by TSPs and ISPs from PDOs. 6. DOT further added that in the name of commercial agreement, many times TSPs/ ISPs insist on PDOs to connect public Wi-Fi Access Points using expensive Internet Leased Line instead of regular FTTH Broadband connection. 7. In December 2020, the Union Cabinet approved the proposal of DoT to proliferate Broadband through Public Wi-Fi networks under the framework of Prime Minister’s Wi-Fi Access Network Interface (PMWANI). This framework takes forward the National Digital Communications Policy, 2018 (NDCP, 2018)’s mission of ‘Connect India’ for creating a robust digital communications infrastructure. The PM-WANI framework envisages provision of Broadband through Public Wi-Fi Hotspot providers and consists of the following elements: (i) Public Data Office (PDO), which establish, maintain, and operate PM-WANI compliant Wi-Fi Access Points and provide last-mile connectivity to deliver Broadband services to subscribers by procuring internet bandwidth from telecom service providers and/ or internet service providers; (ii) Public Data Office Aggregator (PDOA), which provide aggregation services such as authorization and accounting to PDOs, thereby facilitating PDOs in providing services to the end consumer; (iii) App Provider, who develops an application to register users and ‘discover’ and display PM-WANI compliant Wi-Fi hotspots in the proximity for accessing the 7internet service and also authenticate the potential Broadband users; (iv) A Central Registry, which maintains the details of App Providers, PDOAs, and PDOs. The Central Registry is maintained by the Centre for Development of Telematics (C-DoT)4; (v) Wi-Fi Access Network Interface (WANI) ensures the interworking among systems and software applications used by these distributed entities i.e. PDOA, PDO, App Provider, and Central Registry. 8. The National Digital Communications Policy, 2018 under ‘Connect India’ mission had set the goal to enable deployment of 5 million public Wi-Fi hotspots by 2020 and 10 million by December 20225 for creating a robust digital communication infrastructure. 9. Further, for Digital India 2030 mobile and broadband policy objectives, the Bharat 6G Vision6 sets the goal of 10 million public Wi-Fi hotspots by 2022 and 50 million by 2030. 10. As on 22.07.2024, there are 2,07,642 deployed PM-Wani Wi-Fi hotspots in the country and 199 PDOAs and 111 app providers7. Presently, PM-Wani hotspot numbers are much below the targeted numbers, as envisaged in NDCP, 2018 document and in Bharat 6G vision document. Thus, effective proliferation of PM-Wani hotspots is essential to achieve the outlined targets. 11. As per the information gathered from PM-WANI Central Registry8, the average daily data usage per Wi-Fi hotspot was of the order of 1 GB, till last year, and now it has come down to a few MBs, which is quite less than the monthly average data limit being provided to retail broadband customers. The Authority is of the view that such a low data utilization indicates that PDOs requirement may be fulfilled by retail broadband connection and they may not require an Internet Leased Line (ILL) connection. 12. A comparison of 100 Mbps of Internet leased line tariff vis-à-vis 100 Mbps of FTTH 4 https://dot.gov.in/sites/default/files/202-_12_11%20Brief%20PM%20WANI_0_0.pdf?download=1 5 https://dot.gov.in/sites/default/files/EnglishPolicy-NDCP.pdf 6 https://bharat6galliance.com/bharat6G//public/assets/OurOfferings/Bharat-6G-Vision-Statement- copy%202_1.pdf 7 https://pmwani.gov.in/wani 8 https://pmwani.gov.in/pages/admin-kpi-dashboard 8broadband connection shows that the annual tariffs for Internet leased line are 40 to 80 times higher than a retail connection. The Authority is of the view that PDOs, specifically the small scale PDOs viz. small establishment, local shops/ retailers, chaiwalas, kiranawalas, storekeepers etc., generally having low revenue potential, neither need an ILL connection nor they can afford high backhaul rates which are applicable for large commercial entities. This elevated cost of broadband connectivity may act as an impediment for PDOs, subsequently impacting the proliferation of PM-WANI. 13. Therefore, considering economy wide potential benefits of the PM-WANI scheme as highlighted by the Government at para 4 above, the goals and objectives of the Government at para 8 and 9 above and the limited revenue potential of small scale PDOs, the Authority is of the view that it is necessary to rationalize the cost of broadband connectivity to PDOs to pace up the proliferation of PM-WANI scheme. 14. In view of the above, the Authority proposes that for the purpose of providing PM- WANI scheme, PDOs may be charged tariff rate at par with the tariffs for retail broadband (FTTH) connections, for the capacities for which the said retail tariff is being offered to subscribers by the service providers. Based on the experience gained, the Authority may review the proposed arrangement for PM-Wani scheme, after a period of two years. 9