How Is Classic Tech Providing Internet Services Despite A Ban On Foreign Currency Recommendation And An Expired License?
पुस ३, २०८२ १६:१५
Kathmandu: It has been found that the internet service provider Classic Tech, which is operating illegally, is selling internet services by purchasing bandwidth from private mobile service provider Ncell. The company continued selling internet services even after its foreign currency exchange facility was halted due to unpaid dues exceeding Rs 500 million.
The Nepal Telecommunications Authority (NTA) stopped providing foreign currency recommendations to Classic Tech from fiscal year 2080/81 due to non-payment of dues. Classic Tech, which also held a network service provider role, previously purchased bandwidth from Bharti Airtel Limited. After the regulator stopped the foreign currency recommendation, the company began sourcing bandwidth from Ncell to continue its services.
Classic Tech’s internet service provider license expired on 27 August, 2025 (11 Bhadra, 2082). The license has not been renewed due to outstanding dues.
The regulator appears unaware that Classic Tech is operating without a license while continuing to sell services using bandwidth purchased from a domestic provider. While NTA staff have been visiting districts for monitoring, they have failed to stop the company’s operations in Kathmandu. Meanwhile, Communications and Information Technology Minister Jagdish Kharel, who assumed office after the Gen-Z movement, is reportedly working on a plan to provide installment facilities to Classic Tech.
NTA Director and Spokesperson Min Prasad Aryal said this was the first time he had heard about Classic Tech purchasing bandwidth from Ncell despite repeated instructions to clear dues. He said action would be taken if any violation was confirmed.
“We are continuously asking the company to pay its dues. If it has acted against license conditions, action will be taken after monitoring,” Aryal told TechPana.
However, the NTA’s monitoring division has neither conducted inspections nor raised objections on the matter.
“It does not appear that any work has been done on this issue. Classic Tech has not been monitored,” said an NTA employee.
As per regulations, telecom service providers must submit an application with supporting documents to the NTA to obtain foreign currency recommendations for payments to foreign companies. Such recommendations are only issued after confirming that all dues have been cleared.
How Is Classic Tech Buying Bandwidth?
According to NTA data, Classic Tech currently has 259,800 internet customers. During its license period, the company had approval to import around 60 Gbps of bandwidth.
Since it is no longer permitted to import bandwidth from abroad, the regulator is also unaware of how much bandwidth Classic Tech is purchasing from Ncell. Despite unpaid dues, the company had earlier received approval to remit Rs 772.8 million abroad by 2079.
Classic Tech operates two Autonomous System (AS) numbers. AS55915 and AS136776. The latter is used as Classic Tech Transit for bandwidth purchases. The company has been purchasing bandwidth through Ncell’s AS38565.
An Autonomous System is a group of IP networks managed under a single routing policy. Ncell itself purchases bandwidth from Airtel, which operates under AS9498.
Serious Questions Over Regulatory Oversight
The Authority’s silence on a service provider continuing operations after regulatory facilitation was halted has raised serious concerns about monitoring and enforcement.
Former NTA Chairperson Bheshraj Kandel said Classic Tech purchasing bandwidth while operating without a valid license is a grave legal violation.
“The Authority must closely monitor service providers that operate without licenses and fail to pay dues. Despite regulatory restrictions, uninterrupted service is being provided. This raises suspicions of regulatory collusion,” Kandel said.
The NTA authorizes network service providers to import bandwidth in bulk and sell it to ISPs. It has issued NSP licenses to 25 companies, including Classic Tech. However, Classic Tech’s NSP license expired on 29 March, 2024 (16 Chaitra, 2080). Instead of revoking it, the Authority has kept the matter pending, citing unpaid dues.
Despite having an expired license and unpaid liabilities, Classic Tech continues to sell internet services using bandwidth purchased from Ncell. The Authority has not monitored whether network service providers are selling bandwidth only to licensed ISPs.
“The Authority does not closely track which ISPs are purchasing bandwidth from NSPs. Detailed scrutiny happens only when absolutely necessary, and that too rarely,” said a senior NTA employee.
He acknowledged that in the case of Classic Tech, no network service provider can legally sell bandwidth to an unlicensed ISP.
“No NSP is allowed to sell bandwidth to an unlicensed ISP. Internet services cannot be provided without a valid license. This happened due to weak monitoring. A company with such massive unpaid dues should not be allowed to expand its customer base. If bandwidth purchases had been restricted, service quality would have declined and customers would have shifted elsewhere. That pressure could have forced compliance. Instead, it appears the Authority has indirectly protected a defaulter,” the employee said.
पछिल्लो अध्यावधिक: पुस ३, २०८२ १६:१५
