Kathmandu: Nepal’s telecom sector is on the brink of crisis, requiring urgent government intervention for sustainability, industry experts warned at a discussion organized by the Society of Economic Journalists Nepal (SEJON) on Wednesday.
Telecom expert Manohar Kumar Bhattarai highlighted that while 90% of the population has 4G coverage, only two out of ten users regularly consume mobile data. The sector’s contribution to the economy has declined from 3.6% to 1.8%, with revenue falling despite heavy investments in 4G expansion.
Ncell CEO Jabbor Kayumov expressed concern over Nepal’s declining ranking in the global telecom index, dropping from 117th to 119th place. He urged regulatory bodies to create a more investment-friendly environment and emphasized the need for a transition to a subscription-based model. He also announced Ncell’s plan to phase out 3G services by 2025 and called for strict controls on non-VoLTE phone imports.
Nepal Telecommunications Authority (NTA) Chairman Bhupendra Bhandari stated that full 4G coverage would be achieved within a year. He supported shutting down 3G before 2G and assured that 5G spectrum licenses could be approved within a week. He also acknowledged that high taxation—48% of telecom revenue—was burdening operators.
Minister for Communication and Information Technology Prithvi Subba Gurung urged telecom operators to adopt innovative business models to counter declining revenues. He emphasized regulatory reforms, including a new Telecommunications Act, to ensure sectoral stability.
Communication Secretary Radhika Aryal warned that the deteriorating financial health of telecom operators posed significant risks, calling for coordinated action among regulators, policymakers, and service providers.
The government is working on policy changes to revitalize the telecom industry, which plays a crucial role in Nepal’s digital transformation.