At the 9th edition of the NewBiz Conclave and Business Excellence Awards held on June 26 in Kathmandu, Ncell CEO Jabbor Kayumov issued a candid, wide-ranging assessment of Nepal’s declining telecommunications sector—warning that without bold, immediate reforms, the future of digital connectivity in the country hangs in the balance.
Speaking on a high-profile panel themed “Driving Growth Through Reforms”, alongside political and business leaders including Gagan Thapa, Member of Federal Parliament and General Secretary of the Nepali Congress; Jabbor Kayumov, CEO of Ncell; Moushumi Shrestha, Executive Director of Shreenagar Agro Group; and Bal Krishna Joshi, tech entrepreneur and founder of Leapfrog Technologies and Machnet Technologies among others, Kayumov painted a picture of a once-thriving sector now at risk of systemic collapse. The session was moderated by advocate Semanta Dahal.
In Pictures: 9th NewBiz Conclave & Business Excellence Awards 2025
“The Industry Is Declining—and We Can’t Fix It Alone”
Kayumov began by reflecting on Ncell’s two-decade journey in Nepal, marking its 20th anniversary this year. He praised the role of the 1990s liberalisation reforms that allowed private sector participation in telecom—ushering in rapid growth and bringing mobile connectivity to millions.
But that trajectory, he warned, has reversed. “It’s not a secret. Over the past six or seven years, the industry has been in a sharp decline,” he said. “Something is clearly not right.”
Despite internal reforms within Ncell, Kayumov stressed that private efforts alone cannot solve systemic problems. “The government envisions a digital future, and telecom is the critical enabler for anything we can dream,” he said. “And not paying attention to the most critical, fundamentally important industry is uh, might be a very, very big mistake.”
Six Reasons for the Crisis
In a detailed response to audience questions, Kayumov outlined six key reasons why Nepal’s telecom sector is faltering:
1. Rise of OTT Disruption Without Regulation
Apps like Whatsapp and other OTT services have captured a major portion of telecom-generated value—using local networks without paying licensing fees or taxes to Nepal. Telcos are left shouldering infrastructure costs without reciprocal revenue.
“while these apps scaled rapidly, we—operators, regulators, and the government—responded too slowly,” he added.
Read: Nepal’s Business Landscape Shines at 9th NewBiz Conclave and Business Excellence Awards
2. Unlevel Playing Field
“There’s no parity in regulation,” he said. For example, government-owned Nepal Telecom is allowed to pay its Rs 20 billion licence fee over five years, while private companies must pay upfront. “Foreign operators feel unfairly treated,” Kayumov added, noting that ISPs pay as little as $5,000 for licences, while mobile operators pay $200 million every five years.
3. Counterproductive Regulation
Decisions made by the Nepal Telecommunications Authority (NTA) over the past five to six years, he claimed, have eroded industry revenues and confidence. “The regulator was supposed to support the industry and lead us to a brighter future, but most of its decisions have instead directly cut into our revenues,” he said. “Whether rightly or wrongly, that’s one reason for the sector’s decline.”
4. Spectrum Mismanagement
There is an insufficient spectrum policy, Jayumov added. “Spectrum is the most valuable asset for telecom,” Kayumov said. But much of it lies unused. Operators are ready to pay, yet spectrum remains capped or unavailable. “This could and should be better managed.”
5. Missed Investment Opportunities
Nepal is losing out on foreign investment. “Other Countries such as India, Bangladesh and many more are attracting global capital and expertise. Nepal isn’t,” he warned, adding that the focus has shifted too much toward taxation, which discourages foreign investors from feeling secure in the market.
6. Industry’s Own Failures
Kayumov acknowledged the industry's own role in its decline. “We’ve also failed to communicate, engage, and evolve. But we’re working to change that.”
He also issued a stark warning about the ISP sector: “We have around 75 ISPs in Nepal, most of them are loss-making. The sector is also at risk of collapse.”
“Ncell Wants 5G—But There’s No Business Case Yet”
When asked about 5G deployment, Kayumov was clear: “Ncell wants 5G. Ncell wants 6G. We want Nepal to lead South Asia.”
Said Kayumov: “Just for the record, the telecom industry in Nepal, in the last five years, declined about 5%, including ISPs, whereas the neighboring countries increased. In India, for example, it increased by 100% in the last five years, with almost 90% 5G coverage. The world is speaking about 6G. And here we are in Nepal still struggling despite being a leading country when 3G was launched.”
Read: Roadblocks in 5G Rollout
But despite the ambition, the business logic is missing, he argued. “Every other South Asian country has 5G. Pakistan is launching this August. We are last—and without urgent reforms, we may stay last.”
Read: Khanal Calls for Deep Structural Reforms to Restore Economic Momentum
He proposed a five-step solution that must be implemented in parallel: government support, a shift to a subscription-based model that gives better value to customers, taxes and fees—rather than subsidies—should be structured in a way that supports growth, revision of regulatory laws, and lastly, clarity on what happens after 2029 .
Section 33 of the Telecommunication Act, 2053 allows the government to take control of the land, buildings, devices, equipment and structures related to telecommunication services after the expiry of the 25-year license period of a telecommunication company with more than 50 percent foreign investment. If the same company wishes to renew the license, it can do so by paying the full price fixed after evaluating the company’s property.
Adding to the uncertainty, the Nepal government has not yet recognized the ownership transfer of Ncell from Malaysian company Axiata to Spectrlite UK Limited, a firm owned by non-resident Nepali Satish Lal Acharya. As a result, questions remain about whether Ncell’s ownership could revert to the state after four years.
“As the CEO, I’m struggling to convince my shareholders to invest in 5G or 6G unless we see clear returns and long-term policy stability,” he added.
Looking Ahead: Optimism—With Conditions
Despite the challenges, Kayumov ended on a note of hope. “My nature is optimistic,” he said. “I want to believe change will happen. And when it does, I promise—within a year or two—you’ll see a different story.”
Read: Babulal Chachan: The Industrialist Who Dreamed Beyond Border
The NewBiz Conclave, organised by New Business Age with Asian Paints as title sponsors, concluded with awards across nine categories. Industrialist Babulal Chachan was honoured with the Lifetime Achievement Award in Business Leadership for his contributions to development of Nepal’s trade and commerce.
