A groundbreaking initiative launched by the Department of Telecommunications (DoT) called “PM-Wani” scheme, which aims to increase public WiFi hotspots, and also to create a decentralized, micro-entrepreneurship model that transforms local shopkeepers into small-scale Internet Service Providers (ISPs), allowing to enjoy free internet too.
The core mechanism that makes PM-WANI revolutionary is its ability to turn everyday citizens into micro-entrepreneurs who also benefit directly from the service they provide.
The scheme offers you (or anyone) the opportunity to become a Public Data Office (PDO). As a PDO, which can be any local establishment like a small shop or even your home, you act as a small-scale Internet Service Provider (ISP). This model allows you to install a simple, low-cost Wi-Fi access point and sell affordable data packs to your local community.
How to Become a Public Data Office (PDO) & get Free Wi-Fi?
A Public Data Office (PDO) is defined as a location where any individual can access the internet using Wi-Fi connectivity. Under the PM-WANI framework, the PDO’s primary role is to establish, maintain, and operate Wi-Fi Access Points (APs) and deliver last-mile connectivity services to subscribers. Importantly, a PDO is not required to pay any license fee or perform any kind of registration.
Becoming a Public Data Office (PDO) presents a unique opportunity where the financial burden of owning high-speed internet connectivity is shifted from being a personal expense to a self-sustaining business model.
The operational costs of running a PDO, primarily consisting of the monthly fixed-line broadband bill (which can range from approximately Rs. 910 to Rs. 1,475 per month depending on whether you choose Indoor or Outdoor Access Point deployment), can be effectively covered by the revenue generated from selling Wi-Fi access to the local community.
Since the PDO is assumed to receive a substantial share, typically 90%, of the sales revenue, the potential monthly earnings can range widely from Rs. 2,700 up to Rs. 27,000, depending on the plan type and number of customers.
Steps to Becoming a PDO
The process of setting up a Public Data Office involves arranging connectivity and partnering with a PDO Aggregator (PDOA):
- Arrange Broadband Connectivity: The PDO must secure a fixed-line broadband connection from any Internet Service Provider (ISP) in the area. This internet bandwidth can be sourced from ISP/TSP’s such as BSNL, MTNL, RJio, Vodafone, or Bharat Broadband Nigam Limited.
- Contact a PDOA: Engage with a PDO Aggregator (PDOA) to finalize the business model and identify an appropriate type of Wi-Fi Access Point (AP).
- Install and Launch: Install the selected Wi-Fi Access Point and begin providing internet connectivity to users.
Connecting with a PDOA
You have two options for connecting with a potential PDO Aggregator:
- Option 1: Visit the PDO Portal on https://pmwani.gov.in and complete the available enquiry form, which will allow interested PDOAs to contact you.
- Option 2: Visit https://pmwani.gov.in to obtain details for various PDOAs, such as office addresses, email addresses, and telephone numbers, and contact them directly.
A PDO may also use their home broadband connection as a backhaul for the PDO service.
Financial Estimation: Investment and Cost
The investment required to become a PDO typically involves a one-time investment for purchasing and installing the Wi-Fi Access Point, depending on the business model finalized with the PDOA. Additionally, the PDO will have a monthly expenditure for the broadband connection.
Deployment can follow two models: Indoor deployment or Outdoor deployment. The indicative costs are calculated per annum, including depreciation (at 25% of actual cost) and cost of capital (at 12% per annum).
1. Typical Cost for Indoor AP Deployment
The total annual cost analysis for an Indoor Access Point (AP) deployment is Rs. 10,920.
| Item | Outdoor PDO Deployment (Per annum) | Depreciation (@25% of Actual Cost) | ** Cost of capital 12% per annum | Total per annum Cost to PDO |
|---|---|---|---|---|
| AP (One time Investment) | 8000 | 2000 | 960 | 2960 |
| UPS (One Time Investment) | 2000 | 500 | 240 | 740 |
| Bandwidth Cost (Cost for 1 year) | 6000 | NA | NA | 6000 |
| Power Cost (Cost for 1 year) | 2400 | NA | NA | 2400 |
| Miscellaneous/unforeseen (Cost for 1 year) | 5000 | NA | 600 | 5600 |
| Total Annual Cost for Outdoor AP deployment | 17700 | |||
| Cost per Month for Outdoor AP deployment (in Rs) | 17700/12 = 1475 |
This translates to a Cost per Month of Rs. 910 (10920/12) for Indoor AP deployment.
2. Typical Cost for Outdoor AP Deployment
The total annual cost analysis for an Outdoor Access Point (AP) deployment is higher, estimated at Rs. 17,700.
| Item | Outdoor PDO Deployment (Per annum) | Depreciation (@25% of Actual Cost) | ** Cost of capital 12% per annum | Total per annum Cost to PDO |
|---|---|---|---|---|
| AP (One time Investment) | 8000 | 2000 | 960 | 2960 |
| UPS (One Time Investment) | 2000 | 500 | 240 | 740 |
| Bandwidth Cost (Cost for 1 year) | 6000 | NA | NA | 6000 |
| Power Cost (Cost for 1 year) | 2400 | NA | NA | 2400 |
| Miscellaneous/unforeseen (Cost for 1 year) | 5000 | NA | 600 | 5600 |
| Total Annual Cost for Outdoor AP deployment | 17700 | |||
| Cost per Month for Outdoor AP deployment (in Rs) | 17700/12 = 1475 |
This results in a Cost per Month of Rs. 1,475 (17700/12) for Outdoor AP deployment.
Disclaimer: These costs are indicative and may vary based on market dynamics. The opportunity cost of the entrepreneur’s skill and time is not included in these figures.
Revenue-Sharing Estimation and Income Potential
Under the PM-WANI framework, the PDOA is responsible for collecting revenue by selling Wi-Fi coupons to users. The PDOA should then share this revenue with its PDOs based on the usage of the access point.
While the revenue share is mutually negotiated between the PDO and the PDOA, the sources assume a typical revenue share ratio of 90:10, where the PDO receives 90% of the revenue.
Based on different Wi-Fi internet plans, the monthly earnings for a PDO are projected as follows:
1. Daily Plan
This plan type is typically preferred by customers at places where they do not normally reside, such as bus stops, railway stations, or tourist areas.
| Parameter | Value Range |
|---|---|
| Plan Value | Rs. 5 to Rs. 10 |
| Daily Customers | 30 to 100 users |
| Monthly Sale Value (Total Revenue) | Rs. 4,500 to Rs. 30,000 |
| Percentage Share of PDO | 90% |
| Monthly Earning (PDO) | Rs. 4,050 to Rs. 27,000 |
2. Monthly Plan
Monthly plans are preferred by regular users, such as students staying nearby or villagers who visit the PDO location daily to sell their art and craft items through the internet.
| Parameter | Value Range |
|---|---|
| Plan Value | Rs. 100 to Rs. 200 |
| Regular Customers | 30 to 50 users |
| Monthly Sale Value (Total Revenue) | Rs. 3,000 to Rs. 10,000 |
| Percentage Share of PDO | 90% |
| Monthly Earning (PDO) | Rs. 2,700 to Rs. 9,000 |
Advantages of Becoming a PDO
Becoming a PDO offers several benefits to the entrepreneur and their location:
- Additional Income: Provides an additional source of income generated from selling internet connectivity.
- Improved Connectivity: Ensures the availability of good quality internet connectivity, which facilitates online transactions for shop owners.
- Increased Sales: Potential increase in sales due to an upsurge of customers visiting the PDO location.
- Low-Cost Internet in Home: Provides high-speed internet connectivity in your home at a relatively low cost (or free of cost based on the users registered) and also provides an opportunity to earn.
It is important to note that the PDO is not liable to meet any security or compliance requirements.
Key Takeaways:
- PM-WANI aims to increase public WiFi hotspots and create micro-entrepreneurship.
- Individuals can become Public Data Offices (PDOs) to provide affordable internet.
- PDOs can earn revenue by selling Wi-Fi access to their local community.
- The scheme offers additional income and improved connectivity to the entrepreneur.
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