Ncell Suspends Bandwidth Supply to Classic Tech over Unpaid Dues

Telecom operator Ncell has suspended bandwidth supply to Classic Tech, a private internet service provider, after the latter failed to clear outstanding payments amounting to around Rs 350 million, company officials said.

Ncell took the step after Classic Tech did not pay bandwidth charges for nearly a year, leading to the accumulation of substantial arrears. Ncell officials said they had repeatedly urged Classic Tech to clear the dues and had provided a one-month deadline with prior notice, warning that the bandwidth supply would be cut if payment was not made.

“As we also purchase bandwidth at a cost and supply it to internet service providers, the mounting arrears created operational difficulties for us,” a senior Ncell official told New Business Age. “We terminated the agreement and stopped the bandwidth supply after Classic Tech failed to respond within the given deadline.”

According to Ncell, preparations are underway to seek legal remedies to recover the outstanding amount. Ncell supplies bandwidth to multiple companies, including Dish Home, under similar arrangements.

Ncell and Classic Tech had signed a Master Service Agreement, which came into effect on March 25, 2024. Ncell formally informed Classic Tech of the termination of the agreement related to the purchase and sale of bandwidth.

Classic Tech, however, disputed Ncell’s move, saying the agreement was terminated unilaterally while payment discussions were ongoing. “We were in talks regarding the settlement,” a Classic Tech official said. “Terminating the agreement at that stage was inappropriate.” The official attributed the delay in payment to the broader economic slowdown, which has also affected internet service providers.

Classic Tech said the suspension of bandwidth from Ncell has not disrupted its services, as the company has arranged alternative sources. “We explored other options immediately. Service continuity has not been affected,” a senior official said. According to company sources, Classic Tech has begun sourcing bandwidth through Dish Home.

Classic Tech provides fiber-optic internet services using FTTH technology and ranks among Nepal’s major internet service providers. In terms of market share, the company stands fifth nationwide. Data from the Nepal Telecommunications Authority (NTA) as of mid-December 2025 show that Classic Tech has 268,000 subscribers, accounting for 7.98 percent of the country’s fixed broadband market.

According to a rating by Care Ratings Nepal, Classic Tech recorded a turnover of Rs 921 million in fiscal year 2023/24, down 3.15 percent from Rs 951 million in fiscal year 2022/23. The company had posted revenues of Rs 872 million in fiscal year 2021/22.