2024 saw some key telecom industry moments in Nepal. While some of them were key and indicated the country’s milestone telecom expansion, we also had to cope with an embarrassing national internet shutdown. One might as well call it a year of licenses as the country’s top telcos and ISPs had it their way to obtain operating licenses. The new budget also led the way to more digital Nepal ambitions. This post is dedicated to all the readers and lets them know the best telecom highlights from Nepal as we bid farewell to 2024 and look ahead to 2025. Let’s cut to the chase.
Here’s the list of top telecom moments in Nepal in 2024
Axiata leaves Ncell and Nepal
I didn’t want to start off the top telco industry moments with a sort of negative pick. However, its magnitude does deserve primary attention. Because it was quite shocking and provided insights into how the industry is headed for the future. Axiata Group Berhad, the Malaysian telco firm that owned majority shares in Ncell announced and left Ncell selling its equity stakes to UK-based Spectrlite UK for $50 million.
The group cited challenging business environments as the reason to sell its operations in Nepal. The decision has been subject to huge public debate, but experts have also pointed out the lack of policy changes and the need for reformation in radio frequency policy and license fees, etc. to help sustain the telco business. I believe that this deserves to be the top moment of the telecom industry in Nepal in 2024.
FTTH reaches across the country
Now on a brighter note, Nepal Telecom, shortly NTC, extended its Fiber-to-the-Home (FTTH) technology across 77 districts after Humla expansion. The FTTH-based internet runs on fiber optics and brings next-generation broadband speeds. It’s great news and a milestone for the company but also for the government and the people. The digital divide is still at large but the expansion of fiber connectivity is the right way towards promoting digital inclusion.
Model districts for model service
Nepal Telecom also furthered its model district initiative that aims at providing reliable broadband service with dedicated infrastructure. The program started from earthquake-devastated Jajarkot with a mobile tower setup in Rimna, Bheri Rural Municipality – 01. The company has started the project unit in 19 districts for a model service initiative and seeks to ensure a high-quality 4G and fiber network for connectivity. However, I have not heard of new updates for this model district initiative for the service expansion, quality enhancement.
Starlink move
Speaking of connectivity, SpaceX, the Elon Musk-headed American enterprise, made another move to bring Starlink satellite connections to Nepal. In its latest attempt, the eccentric billionaire himself interacted virtually with the current prime minister, KP Sharma Oli, and discussed Starlink’s services. The company has Nepal on its target list for service expansion but faces regulatory hurdles from the get-go.
Let’s see if anything pans out in 2025. Satellite internet though might be expensive (we don’t really know that much as yet), will still do wonders for rural connectivity and tangibly bridge the gap of communication that exists in the remote and rural parts of Nepal.
ICT service imports targeted
In the FY 2081/82 budget speech, the government said that it targets the humongous imports of ICT services worth 3 trillion in the next ten years. It’s ambitious but not ludicrous. In 2022, Nepalese ICT professionals sold such services worth Rs 67 billion. Such works span from remote jobs, individual sales of services, outsourcing, etc. The target seems bold but it’s also beautiful and reflects Nepal’s potential with digital technologies.
Nepalese can buy SIM cards in India, easily
Thanks to the initiation of Nepal’s ambassador to India, Mr. Shankar Prasad Sharma, and cooperation from the Indian side, Nepali citizens are now eligible to buy SIM cards in India. Now, Nepali visitors can buy a SIM card in the Southern neighboring country with either citizenship or a passport, voter’s ID, etc. We have also heard that despite these arrangements, there’s still difficulty in processing a new SIM card purchase in India but let’s hope that the process is made easier and hassle-free in the coming days.
Nationwide internet shutdown that we want to forget
Another forgettable moment of telecom in 2024 in Nepal has to be the almost national internet shutdown when major internet service providers’ networks failed to deliver the service. The disruptions emanated from the ISP’s failure to pay off their Indian upstreamers abroad such as Tata and Airtel. The fact that this happened on the national ICT Day makes it obnoxiously embarrassing. The outage started at 4:00 PM and ended at around 10:30 PM on May 02, 2024.
This led the Indian companies to cut off bandwidth supply which resulted in internet outage for the users in Nepal. Thankfully, this was sorted out a few hours later. But it did give us a day to remember and forget. Having to go without the internet feels like playing a game on Legend mode, doesn’t it?
New policy for diversification of bandwidth import
In a move to nullify future cases of wide-scale internet shutdown, a government committee recommended that network service providers (NSPs) buy their bandwidth from at least two international upstream service providers. The committee also stated that an NSP can’t buy over 60% of its bandwidth from one single bandwidth-providing firm. It’s also suggested that the same firm can’t serve as both ISP and NSP. So far, these are the suggestions and not yet been made into the law. But if that’s done, they will play a remarkable role in ruling out possible internet shutdowns in the future.
All things license
The year 2024 has a lot to do with the topics relating to licenses. Let’s start with the renewals. Nepal Telecom (NTC), the state-backed company obtained its new license on May 10, 2024, to operate GSM mobile services. Likewise, Ncell has been granted an installment-based payment facility to pay its license renewal dues. However, CG Telecom and UTL lost their licenses as NTA revoked their permits.
While NT and Ncell had their way for licenses, the government also opened up the path for ISPs to get their license after reaching 25 years. This made it easier for WorldLink and Mercantile to continue their services.
Ncell starts carrier aggregation
In another top telco moment for 2024, we now have Ncell which started a Carrier Aggregation (CA) technology on its network. The telco is now using 2100 MHz, 1800 MHz, and 900 MHz bands for its CA technology. If you see a 4.5G or 4G+ symbol in your status bar, then that’s CA working on your network.
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Ncell resource revolution – Sadhain ON,
Sadhain ON pack is not just your regular data or voice packs. It’s a revolutionary trend-setting value differentiation from the private telco. The Sadhain ON packs bring voice, data, and SMS in combination and what’s even more exciting is that it comes with no balance shock and rollover features. That means, that once the pack is used up, the balance is not deducted from the main balance. Besides, the remaining volume of resources is carried over to the next subscribed pack.
Additionally, the company now provides a resource exchange feature that lets you change voice to data or vice versa. The unpopular thing the telco has done is introduce new recharge validity which begins at 7 days at minimum which is says is necessary for commercial reasons. Other than that, Ncell has done pretty cool things in 2024.
Sangita Pahadi becomes NTC MD
Also, 2024 saw Sangita Pahadi becoming the managing director of Nepal Telecom. She was already serving as the Acting MD for the company but on September 05, 2024, the new government led by KP Sharma Oli appointed her on a full-time basis. It also came as a welcoming decision as the long-serving NT employee Pahadi was chosen to lead the company for the next five years at the top position.
This is a significant moment for the Nepali corporate scene from the perspective of women being in leading positions at top companies and getting the recognition they deserve. The fact that Pahadi is from within the company also went down well among the employees who cherished her promotion as someone from the company was given the duty to lead the country’s telecom giant.
Ncell buying an ISP?
In another top telco moment, we have another hot cake – private telco Ncell wants to enter the ISP business. Yes, that’s true. Earlier, speculations emerged that Ncell was on the verge of acquiring private ISP Classic Tech. The telco denied this officially and we haven’t heard much since. However, the telco did admit that it wants to seek an avenue in the ISP landscape. So, we are really excited to see further development on it. As Ncell’s issues with license remain, the company could as well embrace a new adventure to bolster its presence in the country’s communication landscape.
New investment for WorldLink
Worldlink, Nepal’s largest ISP in terms of customer base secured 10-million-euro funding from a government-owned Finnish firm finnfund. The ISP says that it will use the funds for its network enhancements and expansion works. In recent years, the company has stressed service expansion in remote areas such as Jumpla, Taplejung, etc. The new investments help it continue the initiative and bridge the connectivity gap
Ncell Foundation begins
The year also saw Ncell starting its CSR lead, Ncell Foundation. It now is responsible for looking after the telco’s community project works. With it, the telco has pledged Rs 200 million in various CSR activities in health, education, environment, and other causes.
More people embrace the internet to recharge their mobile balance
In March 2024, it emerged that more Nepalese now relied on electronic means to recharge their mobile balance, in other words, online recharge. In a report released by Naya Patrika, it’s said that up to 60% of users now recharge their mobile balance online. This shift sheds light on the growing reach and accessibility of the Internet and smartphone usage among mobile service subscribers.
The report mentioned that 60% of users in Ntc used online recharge methods while 38% of Ncell users also did the same. On the flipside, the trend also highlights the prominence of physical recharge cards to this day. But we expect that to further decline in 2025. Online mobile recharge has transformed our habits and made us more digital so, that’s a good reflection of the digital Nepal goals in a way.
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Case filed in MDMS scandal
The government and NTA’s ambitious MDMS (mobile device management system) haven’t had a great start from the beginning. Delays in implementation and seemingly not being operational have hurt the rationale behind its introduction. Even worse, the scandal around it, further bleaks its chances of coming into effect anytime soon. 20 people including former NTA chairman Digambar Jha have been charged by CIAA over irregularities in the procurement of the software system. The controversy also led the former NTA chairman Purushottam Khanal to resign and be succeeded by Bhupendra Bhandari.
CIAA is also investigating possible abuse of power and authority in TERAMOCS. So, both the MDMS and TERAMOCS implementation possibilities have dragged further. Only later in 2025, we might hear something about their revival, but chances are slim again given they’re not so popular reception by the industry and the people.
5G soon!
While 5G discourse has been running in Nepal, especially with the Ntc 5G trial, that was just it. But, the company sources maintain that the company could launch the prized network in the next six months in major cities. So, we are counting on Kathmandu, Pokhara, Birgunj, etc. for this. There are also reports that Ntc 5G offers up to 1 Gbps speed, so, I am already excited. If you have bought a 5G phone in recent years with the expectation to use high-speed 5G data, that may materialize. But that’s just an assumption so, let’s be hopeful.
TikTok unban
Nepal’s one of the most-used social media apps went through an uphill struggle to come into operation after its ban but it did happen. So, it deserves our attention and an entry to the list of top telecom moments in Nepal in 2024 even though it’s less telecom-related.
The Chinese video-sharing platform TikTok was unbanned in Nepal on August 22, 2024, after around 10 months since its ban. The reprieve came with the Chinese company agreeing to the Nepal government’s conditions. TikTok now has to contribute to the promotion of tourism in Nepal, work to enhance digital security literacy, implement strict content filtering, etc.
Fiber and 4G continue growth
2024 also saw continued growth of 4G and fiber users. According to the latest NTA report, there are now over 28.04 lakh fiber internet users and over 2.22 crore 4G users across Nepal. Both Ntc and Ncell have extended their 4G coverage to over 90% of local levels. The figures translate to 76.23% mobile broadband coverage and 42.03% fixed wired broadband connection.
Small cells and 4G at NPL, Gadhimai mela, etc
Ntc deployed small cells and separate infrastructure for a reliable 4G and FTTH network at TU Cricket Ground, Kirtipur for Nepal Premier League 2024. Ncell also provided free WiFi hotspots during the mega-popular cricketing tournament. Similarly, Ntc also worked with mobile towers and small cells to provide consistent 4G connectivity at Gadhimar Mela in the Bara district.
What do we want in 2025?
The telecom industry did see some noticeable developments in 2024 but honestly speaking they were just a few. But the year 2025 could bring us much more. First, let’s hope that the government makes amendments to the telco policy to help telcos sustain themselves financially. Secondly, I wish the authorities were also very eager and accommodating for foreign direct investment (FDI) for the industry. Also, promotions of initiatives that create a level playing field for all is extremely necessary.
Telecom expansion and development works have stalled due to NTA policy also attributable to the 2100 MHz issue. This should be sorted out as soon as possible. As a regulator, NTA shall play a more proactive role where that facilitates telcos, ISPs, and the entire industry for their growth and high-quality service delivery.
The telco industry has not seen much positive in terms of financial gains as their revenues decline each year. So, let’s hope that 2025 shows a new direction to reverse such a fate. Likewise, the talks for the third telco are also gathering pace so there may come a modality on it. Likewise, mobile number portability (MNP) is also a possibility. So, we will keep our senses on these topics.
I am also hopeful that the internet and data pack prices fall further. Connectivity is a key part of our daily lives but the costlier services are an impediment. Even more so, the 13% VAT on digital transactions shall be scrapped. But we should also be upbeat about 5G accessibility in 2025.
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Thanks for reading this article. What was your top telecom moment from 2024 in Nepal? You can share with us in our comments below or on our social media handles.
Nepalitelecom.com extends its heartiest wishes to all of its readers on the occasion of 2025 and wishes that the new year brings more wealth, peace of mind, and sound health.
