Internet Service Providers’ WiFi Mobility (free WiFi Hotspot) service has reportedly cost telecom companies revenue of Rs 14 billion annually. The often-debated customer service from fixed-line internet providers seems to have further contributed to making telcos’ finances weaker.
Nepal’s top ISPs, such as WorldLink and Vianet, provide WiFi hotspot services. Users can connect to these networks on the go. This facility comes at no cost to users. However, this removes the need to buy mobile data packs for users while going out of their homes and offices.
Now, telcos (Nepal Telecom and Ncell) have projected that this ISP’s facility costs them Rs 14 billion a year.
See: Fiber internet users in Nepal: Find latest data of top ISPs
Why do ISPs provide WiFi mobility service?
ISPs have been providing WiFi mobility service to extend their customer satisfaction. It’s a value differentiation facility from their side. It promotes their internet and also strengthens their foundation with their customer base.
However, the free hotspot service they provide conflicts with the legal bylaw for their operation. Nepal Telecommunications Authority (NTA) is aware of the service as well. Earlier, it emerged that NTA could close WiFi Mobility services. Nepali telcos have complained that free WiFi hotspots have worsened their already struggling financial gains.
Check out: Ntc requests to use mobile data for payments; avoid public Wifi
Telcos are not satisfied with ISPs’ Free WiFi Hotspot service
Both NTC and Ncell have publicly stated that ISPs’ WiFi Mobility has impacted their revenues. In its third quarter report for FY 2081/82, NTC mentioned that ISP’s free WiFi hotspots had affected its earnings. At the same time, Ncell CEO and MD Jabbor Kayumov has also been vocal on the same matter. The private operator argues that Nepal’s lower per-user data consumption owes to the free WiFi Hotspot services of ISPs.
To put it into perspective, India’s per-user data consumption is over 20 GB a month in late 2024. It dwarfs Nepal’s 6 GB usage per user per month during the same period.
NTA’s bylaw holds that ISPs can offer their WiFi Hotspot service at select places, but for a limited time and volume of data. However, ISPs are providing unlimited access where a user can surf the internet after logging in.
The issue also involves the license renewal and the frequency of payment. Telcos pay the government Rs 20 billion in license renewal, while ISPs only need to pay Rs 2.70 lakh. This wide discrepancy in government fees has also forced telcos to raise their concern over ISPs’ Free WiFi hotspot service.
Do read: How to use free WiFi hotspots safely? Tips that might save you
ISPs deny that WiFi Mobility is illegal
However, ISPs weigh in on the matter with their rationale. ISPAN chair Sudhir Parajuli refutes the tag that the WiFi Hotspot service is illegal. He points out the government’s own investment in WiFi hotspots across the country.
He adds, “The Government has utilized RTDF funds to operate free WiFi Mobility in 220 places. It’s serving in government hospitals, religious places, etc.” He adds that if it’s about the Rs 20 billion fee in license renewal, there is a ‘grey’ area. “Who takes security guarantees for the equipment?” he asks.
Meanwhile, NTA seems to have concluded that WiFi Mobility is an impediment to telecommunications. On numerous occasions, NTA chair Bhupendra Bhandari has stated that it plans to shut down such services. So maybe, we may have to buy data packs while setting out for internet access.
Are you in favor of NTA closing down ISPs’ free WiFi hotspot or do you see it as a logical facility to stay connected? Do share your opinion in the comment section below.
