In a recent update, Nepal’s Internet Service Providers (ISP) and Telecom Service Providers (TSP) increased subscription and service charges starting today, July 17, 2018!

This major move comes as a result of Nepal Government’s announcement regarding increment of Telecom Service Charges (TSC) in the FY 2018-19 Budget.

Nepal Government states that people’s increased usage of social-networking apps such as WhatsApp and WeChat for making calls has led to the arrival of this imposition.

Following this decision, internet providers will be charged with 13 percent TSC and telecom companies an additional 2 percent leading to 13 percent TSC.

“Internet fees will be hiked by almost 14 per cent effective from Tuesday. As ISPs cannot bear the added financial burden from the new tax system, we are adjusting internet cost accordingly,” says Sudheer Parajuli, Former President of the Internet Service Providers’ Association of Nepal (ISPAN).

ISPs and TSPs including Ncell have modified TSC for internet fees and voice calls in accordance with the provision laid down by the government.

Before the government provision, an internet subscription of 15 Mbps per month costed Rs 1,000, which will be now be increased to Rs 1,150. Voice calls were being offered at one rupee per minute.

“At a time when the government is aiming to increase people’s access to internet and technology, increased internet cost will directly affect this plan,” says Parajuli.

Earlier, many ISP providers had expressed their dissatisfaction over the new development and said that this decision will not only financially burden providers but also serve as a major roadblock for the development of the Nepali Information and Communication Technology industry.

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The government is coming up with the ‘net neutrality’ policy to be considered while issuing licenses to local telecom operators and Internet Service Providers (ISP).

The new policy upon implementation will regulate the way ISPs deliver services with regard to speed-based discrimination and pricing of internet traffic.

This decision makes Nepal Telecom Authority (NTA) second such authority in South Asia after India’s Telecom Regulatory Authority of India (TRAI) to formulate such a policy that enforces regulation for fairness in internet service delivery.

Nepal is consulting TRAI for finalization of the policy.

Why Net Neutrality in Nepal?

Net neutrality is the policy that mandates ISPs to ensure fairness in all the services they deliver across web-based platforms.

Though the concept of net neutrality has been under discussion across the globe, Nepal Government is coming up with such legal framework for the first time in its history. Till date, Nepal has no legal rules protecting the existing net neutrality process.

At the start of 2018, NTA opined that ‘net neutrality’ is not a serious concern for Nepal, however changed its decision after some local ISPs reported violation of net neutrality creating the need for the same.

Nepal’s move towards such policy gains significance in view of the growing demand for the same, globally.

On a global scale, TRAI and European Regulators of Electronic Communications have signed a deal for exchange of information on net neutrality, and the United States has also recently reviewed protection of its net neutrality policy upon demands from the activists and local legislatures.

NTA will soon make the regulation public, NTA Spokesperson Min Prasad Aryal said in a statement.

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