The ₹5 Digital Lifeline: India's Sachet Internet Turf War
Startups and telcos clash as low-cost Wi-Fi sachets challenge traditional mobile data plans.
1The Rise of Micro-Connectivity
Indian households are increasingly turning to ₹5 Wi-Fi sachets to bypass expensive cellular data plans. Families like Mohammad Moin’s in Delhi use these affordable hotspots for schoolwork and entertainment. This shift highlights a growing demand for cost-effective internet alternatives as traditional mobile data costs continue to rise across the country.
2PM-WANI Policy Framework
Launched in December 2020, the Prime Minister’s Wi-Fi Access Network Interface (PM-WANI) scheme aims to democratize broadband access. It allows local shops to act as Public Data Offices (PDOs) without complex licensing. Despite the ambitious goal of 10 million hotspots by 2022, only 432,906 units have been deployed as of November.
3Operational and Financial Hurdles
Many listed Public Data Office Aggregators have ceased operations due to poor financial viability and high implementation costs. Companies like Gaonwani Network and SDM Infotech reported that the business model remains difficult to sustain. Fragmented standards and unreliable user experiences further complicate the widespread adoption of these public Wi-Fi networks.
4The Wiom Business Model
Gurugram-based Wiom operates as an open aggregator platform, providing routers and software to local ISPs. The company serves approximately 500,000 unique monthly users with micro-recharge plans. With backing from investors like Accel and Prosus, Wiom aims to reach one million hotspots to achieve a break-even point within eighteen months.
5Unit Economics of Sachets
For every ₹5 recharge, 70% of the revenue goes to the ISP, while the remaining 30% is split between Wiom and the local router host. This model incentivizes homeowners to provide space for infrastructure. Despite this, Omnia Information reported widening losses of ₹99.3 crore in the 2025-26 fiscal year.
6Telecom Tariff Pressures
Major operators like Reliance Jio and Bharti Airtel have raised entry-level plan prices, pushing consumers toward SIM consolidation. As mobile data becomes costlier, users are increasingly sensitive to price hikes. Analysts suggest that rising tariffs create a market opportunity for public Wi-Fi to serve as a complementary, budget-friendly connectivity layer.
7Indoor Connectivity Challenges
While mobile networks provide primary coverage, many urban residents face poor signal quality inside their homes. Industry estimates suggest 80% of mobile data consumption occurs indoors. Public Wi-Fi hotspots, often deployed in residential clusters, offer a necessary alternative for users who struggle with inconsistent indoor connectivity and strict data caps.
8Industry Resistance and Competition
The Cellular Operators Association of India (COAI) argues that ubiquitous mobile broadband has reduced the need for public Wi-Fi. Private telcos maintain that the demand for PM-WANI services remains limited. Meanwhile, ISPs have expressed frustration over regulatory price caps, claiming some PDOs are misusing connections to serve entire buildings illegally.
9Regulatory Intervention and Reforms
To ease financial pressure on PDOs, the telecom regulator mandated that telcos cannot charge more than double the retail fiber-to-the-home rates. Recent reforms include QR-based authentication and flexible micro-plans of 15 to 60 minutes. These changes aim to simplify the user experience and encourage more small businesses to join the network.
10Structural Implementation Issues
Former TRAI chairman R.S. Sharma attributed the slow rollout to a three-year delay in policy approval and the pandemic. He noted that the BharatNet project suffered from a PSU-led model rather than an open, neutral network. Future success depends on extending fiber infrastructure directly into villages and community spaces for better access.
11Market Potential and Future
With over five million fixed wired internet users in rural India, the potential for fiber-based hotspots remains significant. Experts suggest that the next phase must focus on making public Wi-Fi simpler and more reliable. If integrated correctly, these sachets could provide essential capacity in high-density areas and underserved rural regions.
12Strategic Outlook for Connectivity
Public Wi-Fi is unlikely to replace mobile networks but will serve as a vital capacity layer. Success depends on balancing affordability with convenience and speed. As price-sensitive consumers continue to face tariff hikes, the ability of startups to scale their infrastructure will determine if sachet internet becomes a permanent fixture.
Original article: mint - industry — The ₹5 Digital Lifeline: India's Sachet Internet Turf War