9.41% of Nepalis still Using 2G Network

While several countries around the world are preparing to roll out sixth-generation (6G) telecommunications technology, a government report shows that 9.41 percent of Nepalis are still using second-generation (2G) mobile networks.

Fourth-generation (4G) services have yet to reach Nepal’s entire population, and despite years of discussion, there is still no certainty on when fifth-generation (5G) services will be commercially launched in the country.

According to data released by the Nepal Telecommunications Authority (NTA) covering the period up to mid-December, 2.74 million people—2,744,822 users—are still using 2G services. The number of 3G users is comparatively lower. The data show that 801,685 people use 3G, accounting for 2.75 percent of the total population.

The largest share of users relies on 4G services. As of mid-December, Nepal has 26.14 million 4G users, with 89.64 percent of the population using the service, according to the regulator.

Although Nepal was the first country in South Asia to introduce third-generation (3G) mobile services, it has yet to launch 5G. Globally, commercial 5G services have been in operation for about six years, and while technologically advanced countries are already preparing for 6G, there is still no clarity on when Nepal will commercially introduce 5G.

The NTA has yet to determine the fees related to 5G. In recent years, the revenues of major telecom operators—Nepal Telecom and Ncell—have been declining. Senior Ncell officials had previously said that moving to 5G would be difficult unless the government creates a more favourable policy environment to help boost revenues.

Telecom operators have also called for changes in state policy to facilitate the transition to 5G. Due to the absence of a clear government or regulatory policy on 5G, operators say they are in a “wait-and-see” position.

There has also been discussion that geopolitical concerns have delayed government decisions on launching 5G in Nepal. Government officials acknowledge that since Chinese company Huawei has a near-dominant presence in Nepal’s 4G infrastructure, the United States has shown interest in whether a Chinese firm would also secure 5G contracts.

Senior officials at Nepal Telecom Limited said they are unable to move ahead with a 5G upgrade because the NTA has not yet finalised policies on fees related to frequency allocation and other charges.

“The authority has not yet clarified what the government’s 5G policy will be or how much operators will have to pay for 5G,” Nepal Telecom spokesperson Rabindra Manandhar told New Business Age. “We are making preparations to launch 5G services, but we can only move forward once there is clarity from the regulator on the applicable fees.”

The NTA had granted Nepal Telecom permission to conduct 5G trials in March 2021. For testing purposes, the authority provided 60 MHz of spectrum under the 2,600 MHz band free of charge for up to one year. The approval came with conditions, including providing free 5G access to users during the trial period, returning the spectrum after the trial ends, and the possibility of revoking permission if there was no progress in importing and installing equipment within three months.

Although a task force was formed to study the rollout of 5G, its report has yet to be made public. Manandhar said clearer direction on how and when 5G will be implemented is expected once the report is implemented in the coming days.