Summary:
A debate has emerged over the use of the ₹1.06 lakh crore Digital Bharat Nidhi fund, with telecom operators, technology firms, and satellite broadband companies disagreeing on whether the money should support public Wi-Fi expansion or mobile broadband infrastructure. While telecom companies argue that widespread 4G and 5G coverage makes public Wi-Fi less necessary and oppose subsidising competing networks, technology groups and satellite providers believe public Wi-Fi complements mobile services and can improve affordable internet access in underserved areas. As TRAI reviews the future of the PM-WANI programme, former TRAI chairman R.S. Sharma has suggested that implementation challenges, rather than flaws in the model, are responsible for its slow progress and has called for stronger coordination to accelerate deployment.
A government-backed fund worth ₹1.06 lakh crore, created to improve digital connectivity across India, has become the focal point of an intensifying dispute among telecom operators, technology firms, and satellite broadband companies over how internet access should be expanded nationwide. The debate has gained momentum as the Telecom Regulatory Authority of India (TRAI) evaluates measures to revitalise the PM-WANI public Wi-Fi initiative, which has seen limited success since its launch in 2020, through its ongoing consultation on the expansion of public Wi-Fi networks in the country.
Central to the discussion is the Digital Bharat Nidhi (DBN), previously known as the Universal Service Obligation Fund (USOF), which is primarily financed through contributions from telecom service providers. The key issue under consideration is whether these funds should be allocated to support public Wi-Fi infrastructure and services or continue to be focused on extending mobile broadband networks.
Why the Issue Is Significant
The Digital Bharat Nidhi was established to finance connectivity projects in regions lacking adequate digital infrastructure. Telecom operators contribute 5 percent of their adjusted gross revenue (AGR) to the fund, which had accumulated approximately ₹1.06 trillion by March 2026.
The debate has become more pressing due to the underperformance of the PM-WANI programme. Despite government goals of establishing 10 million public Wi-Fi hotspots by 2022 and 50 million by 2030, only around 4.1 lakh hotspots were operational as of April 2026. TRAI is now exploring regulatory and financial measures that could improve the commercial viability and wider adoption of public Wi-Fi services.
The Cellular Operators Association of India (COAI), representing major telecom companies including Reliance Jio, Bharti Airtel, and Vodafone Idea, has opposed the use of DBN funds for subsidising public Wi-Fi projects. The association argues that telecom operators contribute most of the fund and should not be required to support an alternative connectivity ecosystem that competes with their services. It also notes that operators already bear significant costs related to spectrum acquisition, network deployment, rural connectivity obligations, and regulatory compliance, while Wi-Fi providers do not face similar responsibilities.
COAI further contends that extensive 4G and 5G coverage, combined with some of the lowest mobile data prices globally, has diminished the need for public Wi-Fi. According to the association, the fund should instead be directed toward expanding mobile broadband infrastructure in areas that still lack adequate coverage.
Reliance Jio has taken a stronger position, stating that subsidised public Wi-Fi is unlikely to meaningfully improve digital inclusion because it largely serves users who already possess smartphones and access affordable mobile internet. The company argues that telecom operators would effectively be financing competing Wi-Fi networks through contributions to the fund.
Vodafone Idea and Airtel have expressed similar concerns. Vodafone Idea believes public Wi-Fi may never achieve the scale originally envisioned and opposes targeted incentives for Wi-Fi deployment. Airtel has advocated broader broadband sector reforms, including improved backhaul infrastructure and policies that encourage investment, rather than introducing Wi-Fi-specific subsidies or rollout targets.
Technology and Satellite Industry Support Public Wi-Fi
Technology firms and public Wi-Fi proponents have challenged the telecom sector’s stance.
The Broadband India Forum (BIF), whose members include companies such as Google, Meta, Amazon, and Netflix, argues that public Wi-Fi serves as a complement rather than a rival to mobile broadband. According to the forum, India should avoid relying exclusively on mobile networks for connectivity. BIF highlights that a large share of internet usage occurs indoors, where mobile signals may face coverage and capacity constraints. It also maintains that fibre-supported Wi-Fi can deliver internet access at lower costs than mobile broadband, making it an important tool for affordable connectivity.
The forum has urged TRAI to permit DBN funding for public Wi-Fi infrastructure, including hotspot deployment, last-mile backhaul facilities, and connectivity projects in rural Gram Panchayats, semi-urban locations, and underserved areas where private-sector investment is limited. It has also suggested linking funding to performance indicators such as uptime and active usage instead of focusing solely on infrastructure deployment.
Satellite internet providers have largely backed calls for a technology-neutral approach. Project Kuiper has recommended allowing DBN support for satellite-based last-mile connectivity in regions where fibre networks are impractical or too costly. The company has also sought recognition of satellite connectivity as an eligible backhaul technology under PM-WANI. It argues that funding decisions should prioritise connectivity outcomes rather than favouring specific technologies and should focus on areas lacking sufficient broadband infrastructure. Additional recommendations include simplified authentication systems, affordable connectivity vouchers, and adequate access to satellite spectrum to encourage wider adoption.
Former TRAI Chief Points to Implementation Challenges
Former TRAI chairman R. S. Sharma, one of the principal architects of PM-WANI, believes the programme’s slow progress is largely the result of execution-related challenges rather than flaws in the model itself.
In his submission to TRAI, Sharma attributed the limited rollout to factors such as policy delays, opposition from telecom operators, weak last-mile connectivity under BharatNet, the absence of a dedicated coordinating institution, and limited availability of PM-WANI-compatible equipment.
To address these issues, he has proposed establishing a national coordinating body similar to the National Payments Corporation of India (NPCI), which would oversee governance, standards, and ecosystem development for PM-WANI. Sharma argues that removing operational bottlenecks and improving coordination should be prioritised over redesigning the programme itself.
