Study of the Backhaul Tariff Regulation for the Public Wi-Fi Programme in India

Public Wi-Fi is a suitable technology alternative to mobile broadband for affordable Internet access. To improve Wi-Fi access, the Indian government launched the Wi-Fi Access Network Interface (WANI) as an approved Public Wi-Fi infrastructure in December 2020. However, the scheme has so far met with limited success. We discuss the WANI framework, different backhaul options available for resale under WANI scheme and the associated reasons for market failure. We then discuss backhaul tariff capping as one of the regulatory intervention options for sustainability of the public Wi-Fi scheme. Using extensive data-based simulations, we estimate the optimal backhaul tariff for sustainability of the WANI scheme. We also recommend one-time subsidy and a cap on the number of subscribers as additional regulatory interventions.