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Anu Bakshi, manager of Chinese restaurant Fa Yian, spends Rs 2,500-5,000 every month on the private Wi-Fi installed at the restaurant, in the heart of Connaught Place (CP) here.
Last week, a free public Wi-Fi zone was inaugurated in CP, one of the busiest markets here, in partnership with Tata Docomo. But as of now, the Wi-Fi signal at Fa Yian isn't strong enough to ensure uninterrupted access for Bakshi's customers. Asked whether she would stick to the Wi-Fi network provided by Tata Docomo if the issue relating to signal strength was addressed, Bakshi says, "Why not?" It will help her cut costs substantially and save the hassle of running her own equipment.
It is outlets such as Fa Yian that officials at Tata Docomo are in search of.
As of now, the service is free for the first 20 minutes. Avinash Gabriel, chief operating officer (Wi-Fi business), Tata Docomo, told Business Standard that against popular belief, customers were willing to pay for usage. Tata plans to triple the number of outlets selling recharge coupons for the service, says Gabriel, adding some customers are seeking cards that last them a month instead of only a day. "The other option for us to earn revenue on the investment is through monetisation options such as advertising."
On the cards are tie-ups with shopkeepers and restaurant owners whom the services can be extended to. Tata already has a customer in Starbucks, the popular coffee joint that offers free Wi-Fi. While customers use Starbuck's Wi-Fi for free, the coffee shop pays Tata for the usage.
Before CP, a similar network was set up at Khan Market, another popular hang-out in New Delhi, by Vodafone. The company has also agreed to offer similar services at Dilli Haat, an arts-and-craft shopping arcade in the national capital.
Despite the value proposition, it might take Tata Docomo, Vodafone and others three to five years to break-even. The concept, nevertheless, is worth a try, says an official of a large telecom service provider. "The idea is to decongest the network of service providers at busy spots such as malls and airports, where usage is very high. The official adds since no operator has a pan-India 3G licence and everyone is constrained on the spectrum issue, such large-scale Wi-Fi hotspots are a good idea. All it takes is some Wi-Fi antennae and boosters in places such as malls."
It might, however, not be economically viable to put up such networks in all places, as it requires laying network fibre and involves significant digging and trenching of cables. The New Delhi Municipal Corporation (NDMC) has invited service providers to set up such networks in the entire area under its jurisdiction, including residential areas, says O P Mishra, director of information technology at NDMC. "We have opened it up to everybody and our target is to cover the entire area by March next year," he says.
Mishra's plan is to build applications on the network. A mobile application is being designed through which residents can get information about vacant parking spots and cultural activities in the area, among others, Mishra says.
An official in the telecom sector said though setting up large Wi-Fi hotspots might not be possible, doing so in specific locations within a city was feasible.
There is no business case for free public Wi-Fi networks unless the government ensures a few conditions set by telecom companies are met, says another official from the sector. "City or state administrative bodies have to exempt right-of-way charges, which involves paying the local municipal authorities for laying the cable." Usually, operators have to pay rent the municipal authorities for using the property while setting up towers and switches. Even if the rent is exempted, service tax is charged on the actual cost.
"This, too, should be exempted," the official adds.
Another demand of telecom companies is infrastructure be shared, as the cost to put up these networks is huge and unless sharing of infrastructure is allowed, the business model might not be viable. "Last, the government has to remove the licence fee on internet and broadband, a long-standing demand of the industry," the official said
It is difficult to ascertain whether service providers will be keen on residential areas, too. "Right now, it is only a pilot for us. We have to see how the business viability works out. We are first targeting high-footfall areas," said the official quoted earlier.
LOGGING IN
- The Wi-Fi service in Connaught Place is the largest in India; at any point, the service can be availed of by 5,000 people, with a speed of 512 Kbps
- The first 20 minutes (within a 24-hour period) will be free, after which one can recharge through scratch cards
- Recharge cards are available at Rs 10 for 30 minutes, Rs 20 for an hour and Rs 50 for 180 minutes of Wi-Fi access
- The password is sent to users via SMS once they log in to the hotspot through the Wi-Fi settings
