The government has expanded free Wi-Fi access to 19 public locations across the Kathmandu Valley, reversing earlier attempts to curb such services under pressure from telecom operators facing an existential threat from internet-based alternatives.
According to the state-run news agency RSS, the initiative—launched under the leadership of Minister for Communication and Information Technology Jagdish Kharel—aims to enhance digital inclusion and improve public access to the internet in key areas such as hospitals, heritage sites, airports, and transport offices.
According to the Ministry, free Wi-Fi has now been installed or upgraded in areas including Pashupatinath temple premises, Tribhuvan International Airport, Bhaktapur Cancer Hospital, Kirtipur Hospital, and the New Bus Park. Additional installations are underway at transport offices in Tinkune, Ekantakuna, and Radhe Radhe, Bhaktapur.
The service is being jointly implemented by Nepal Telecom, WorldLink Communications, and Vianet, in coordination with the Nepal Telecommunications Authority (NTA), RSS further reported. Existing networks have undergone major upgrades, with bandwidth boosted from 10 Mbps to 150 Mbps and per-device data limits raised from 100 MB to 500 MB.
Minister Kharel, who assumed office on September 22, had pledged to expand free Wi-Fi access across the Kathmandu Valley within two months. The Ministry said preparations are also underway to extend the service to ten major cities outside the Valley.
The move marks a significant reversal from the policy stance of the previous government, which had considered restricting free Wi-Fi services following complaints from telecom operators that they were losing mobile data revenue. Earlier this year, telecom companies, including state-owned Nepal Telecom and private operator Ncell, had urged the regulator to limit free public Wi-Fi, arguing that it undercut paid mobile data services and worsened their financial strain.
Nepal’s telecom sector has been struggling with declining profits amid the growing popularity of over-the-top (OTT) platforms and internet-based services. Nepal Telecom’s net profit plunged by nearly 49 percent in the third quarter of Fiscal Year 2024/25, with company officials citing high taxes, a sharp drop in voice-call revenue, and rising competition from internet service providers (ISPs) offering mobility-based Wi-Fi.
Read: Nepal’s Telecom Sector in Crisis as Profits Fall amid Heavy Taxation and Internet Boom
In response, the NTA had earlier even considered discontinuing WorldLink’s free mobility Wi-Fi service. However, the new government appears to have taken a different approach—emphasizing digital access over market protection.
Experts view the move as a shift in government priorities—from safeguarding industry income to ensuring public digital inclusion. Analysts say the growing dominance of ISPs in public internet delivery could further alter Nepal’s digital landscape amid telecom companies struggling to fund 4G and 5G expansion projects.
The then CEO of Ncell Jabor Kayumov had voiced concern at a public event that the telecom sector is entering a complex crisis.
“A large chunk of revenue goes to taxes, 20 percent is used for equipment, and the rest for operations. That leaves little room for future investments like 5G.”
Kayumov estimated that over Rs 60 billion would be required for both major operators to deploy 5G services nationwide—a figure that appears increasingly out of reach as profits continue to shrink.
Former Chairman of the Nepal Telecommunications Authority, Bheshraj Kandel, criticized the government’s policy of treating telecom as a luxury sector. "Telecommunications should be considered an essential service. But in Nepal, they are taxed at 30 percent, compared to 25 percent for other sectors,” he told the state-owned national news agency RSS.
IT expert Manohar Bhattarai echoed the need for policy reform, suggesting that outdated tax structures be revised. "The revenue model has changed due to technology. It's time to amend existing laws to reflect this new reality,” RSS quoted Bhattarai as saying. While he opposes banning OTT services, Bhattarai urged the government to regulate them more effectively to protect telecom operators' investments.
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