Authority Moves to Shut Down Free Wi-Fi Mobility Under Telecoms Pressure

Kathmandu: The Nepal Telecommunications Authority (NTA) is moving to shut down free Wi-Fi mobility services under pressure from telecom operators. The decision comes after Nepal Telecom and Ncell claimed they are losing over Rs 14 billion annually due to Wi-Fi hotspots provided by internet service providers (ISPs).

The regulator was reportedly alarmed by the figures presented by both companies. Officials from government-owned Nepal Telecom and private operator Ncell had repeatedly lobbied the NTA, urging strict action.

Internet service providers were accused of operating free Wi-Fi hotspots without adhering to the rules. In response, NTA Chairman Bhupendra Bhandari had publicly stated that a detailed study on free Wi-Fi mobility had begun. Following internal reviews, NTA officials concluded that ISPs offering seamless Wi-Fi mobility were violating hotspot regulations. The authority has now warned of action and is preparing to issue strict directives.

In a conversation with TechPana, an Ncell official claimed ISPs’ hotspots have caused them losses exceeding Rs 14 billion each year. He said these services operate largely without restrictions. A telecom technician added that out of the Rs 14 billion, over Rs 8 billion would have gone to the government in taxes and fees. Faced with mounting pressure and years of declining mobile revenue, the NTA recently issued a notice aimed at curbing free Wi-Fi mobility services.

ISPs have been expanding free Wi-Fi hotspots across the country, which telecoms argue is hurting their data revenue. Nepal Telecom, in its latest quarterly report, stated that mobile data use has dropped significantly due to ISPs offering Wi-Fi-based mobility.

Ncell CEO Jabbor Kayumov has also publicly said that Wi-Fi, not mobile data, is now the main source of internet access. He revealed that 77% of mobile users spend more than 60% of their time connected to Wi-Fi, severely impacting telecom revenues.

NTA Clarifies: Not All Wi-Fi Will Be Banned

Dr. Pradeep Paudyal, NTA Deputy Director and Assistant Spokesperson, clarified that this is not a blanket ban on all Wi-Fi hotspots. He said only telecom operators are legally allowed to provide seamless mobility and roaming services via Wi-Fi. “Hotspots can be placed in public spaces like temples, parks, and airports for emergency use,” Paudyal explained. “They are not meant for continuous app usage or movie downloads. These are time-bound services and users must re-login after the set duration.”

However, the NTA has yet to specify how long a user can stay connected. Paudyal said service providers currently determine the session duration and added, “If necessary, the authority will set a limit.”

Last Sunday, the NTA warned ISPs operating hotspots in violation of the 2075 BS Hotspot Operation Regulations. The notice stated that only Nepal Telecom and Ncell are authorized to offer seamless connectivity, roaming, and mobility through Wi-Fi.

ISPs Push Back Against Claims

ISPs argue that blaming them for telecoms’ declining revenue is unfair. A senior WorldLink official told TechPana, “We don’t offer free Wi-Fi everywhere, only in public spaces like temples and parks, as permitted by law. It is wrong to say that ISPs are providing the internet all the time. ” ISPs also offer free hotspots upon request from local governments. WorldLink alone operates over 16,000 free Wi-Fi hotspots nationwide.

In many areas with poor mobile connectivity, ISP hotspots serve as the only reliable internet option. Users increasingly prefer these services due to lower costs and better reliability.

Despite nationwide 4G coverage, concerns remain about quality, especially on highways. Ookla’s Global Internet Speed Index supports this, Nepal dropped off the index in July 2024 after mobile data speeds from both Nepal Telecom and Ncell were deemed unreliable.

Nepal has been listed on Ookla’s global index since 2017. While mobile data has dropped in reliability, Nepal still ranks 88th out of 152 countries for fixed broadband, mostly driven by ISP services.

 

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