Telecom Service Providers Lose Rs 1 Billion Due to TikTok Ban: Ncell

Ncell, a leading private telecom service provider in Nepal, has reported that telecom companies in the country incurred losses amounting to approximately Rs 1 billion due to the ban on the popular mobile app TikTok.

In a presentation to journalists on Wednesday regarding the current state of the telecommunications sector, Ncell stated that telecom operators lost an estimated Rs 1.2 billion annually due to the TikTok ban. However, with the ban in place for 10 months, the loss has been calculated at Rs 1 billion.

"We have estimated the financial impact based on the data consumption trends before and after the ban on TikTok," a company official said. "When a popular app like TikTok is banned or faces issues, our data consumption drops, which adversely affects the financial health of telecom companies."

The ban affected creative earners and businesspeople who relied on TikTok.

The government, led by then-Prime Minister Pushpa Kamal Dahal, had imposed the TikTok ban on November 13, 2023 citing concerns that it was disturbing social harmony. Following repeated requests from TikTok to lift the restriction, the incumbent government decided on August 22, 2024, to allow the app to resume operations under specific conditions, including official registration in compliance with local guidelines. The decision was implemented on September 6, 2024, after the Nepal Telecommunication Authority directed mobile and internet service providers to lift the ban.

TikTok reportedly has 2.2 million users in Nepal.