Classic Tech Owes Ncell Over Rs 200 Million, Has Not Paid Bandwidth Fees For More Than A Year

Kathmandu: It has been found that Classic Tech, which has not paid government dues and is illegally providing internet services without renewing its license, has also failed to pay for bandwidth purchased from Ncell. Ncell is now stuck with more than Rs 200 million from a company whose network service license expired long ago.

According to findings, Classic Tech began purchasing bandwidth from Ncell just four days before the expiration of its network service provider license. After losing the license that allowed it to import bandwidth from abroad, the company continued providing internet services by sourcing bandwidth from Ncell. However, it has not made any payment to Ncell for the past one year. Ncell has stated that despite repeated requests, it has been unable to recover the outstanding amount.

In response to an email inquiry from TechPana, Ncell admitted that it has not received payment for the bandwidth supplied to Classic Tech for over a year. “We have a business partnership with Classic Tech. Like other service providers, Classic Tech is also purchasing bandwidth from us. However, it has not paid for the bandwidth for the past one year. Despite continuous follow-up by our team for payment, it has not paid the dues yet,” Ncell said in its email response.

Since 27 August, 2025 (11 Bhadra 2082), Classic Tech’s internet service license has expired. Under the Telecommunications Act, no entity is allowed to provide internet or telecommunications services without a valid license.

When TechPana asked why Ncell continued selling bandwidth to a company operating without a license, Ncell responded that it is not an authorized body to verify regulatory compliance. It claimed that issues related to the legal status of Classic Tech fall outside its jurisdiction.

Ncell further clarified that it is permitted to sell bandwidth to any internet service provider, as it holds a network service provider license from the authority. According to Ncell, it enters into a “master service agreement” with such ISPs.

Ncell also stated that it has continued supplying bandwidth to protect the internet access rights of Classic Tech’s customers, despite non-payment for over a year. “We have entered into a master service agreement with Classic Tech like any other ISP. We are supplying bandwidth, respecting the right of Classic Tech’s customers to access the internet despite Classic Tech’s non-payment. Our team is continuously working to collect payment,” Ncell said.

Meanwhile, the regulator, the Nepal Telecommunication Authority, has been found to have protected Classic Tech even after it failed to pay dues amounting to crores of rupees. The authority has also been seen recommending foreign currency payments in violation of existing laws.

At the same time, Minister for Communications and Information Technology Jagdish Kharel has been engaged in preparations to allow installment facilities for companies with more than Rs 500 million in government arrears, including those operating without a valid license.

Although Classic Tech’s internet service license expired around four months ago, its network service provider license, which allowed it to import bandwidth from abroad, had already expired on 29 March, 2024 (16 Chaitra 2080). Records show that the company started purchasing bandwidth from Ncell just four days before that expiry. The master service agreement between Ncell and Classic Tech came into effect on 25 March, 2024 (12 Chaitra 2080).

Ncell has not officially disclosed the exact amount owed by Classic Tech, citing a confidentiality clause under a non-disclosure agreement. However, according to unofficial sources, Classic Tech owes Ncell more than Rs 200 million in unpaid bandwidth fees.

Ncell has also stated that it cannot make public whether the agreement with Classic Tech would be terminated if the payment continues to remain unpaid.

 

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