Unlicensed Classic Tech’s Internet May Be Shut Down at Any Time, Customers at Risk
पुस १०, २०८२ १९:४९
Kathmandu: The risk faced by customers of Classic Tech, which is providing internet services without a valid license, has increased. Despite the possibility that its service could be shut down at any time, the company continues to add new customers and renew existing subscriptions.
Classic Tech is operating without a license due to regulatory inaction by the Nepal Telecommunications Authority. The authority has neither renewed nor revoked the licenses of internet service providers that have failed to clear their dues. This has increased the risk for Classic Tech’s customers.
According to regulations, Classic Tech has not paid its Rural Telecommunications Development Fund (RTDF) contribution and royalty to the authority since fiscal year 2077/78. Instead of enforcing collection, the authority allowed around Rs 770 million to be taken abroad. As a result, the company’s outstanding dues have exceeded Rs 500 million.
Despite unpaid dues and the non-renewal of its license, Classic Tech has continued to operate without interruption. Providing internet services without a license is illegal under the Telecommunications Act.
The authority stopped issuing foreign exchange recommendations to Classic Tech from fiscal year 2080/81. Four days before its network service provider license expired, the company began purchasing bandwidth from Ncell. However, it has not paid Ncell for bandwidth for over a year.
Classic Tech reportedly owes Ncell more than Rs 200 million. If payment is not made, Ncell can terminate the bandwidth agreement at any time. Sources say Ncell is no longer willing to wait. If bandwidth supply is cut, Classic Tech’s internet service will be disrupted.
According to authority data, Classic Tech has 259,800 customers, including 259,101 fiber users and 699 wireless users. With a market share of 7.83 percent, it is Nepal’s fifth-largest internet service provider.
However, the company currently has no valid license and has failed to pay significant bandwidth fees. Any regulatory or contractual action against Classic Tech would directly affect its 259,800 customers.
The Company May Close Anytime
With unpaid dues exceeding Rs 500 million and no license, the company is reportedly lobbying the regulator. Sources say Classic Tech Director Pramesh Kharel is seeking installment-based payment of arrears through the Minister for Communications and Information Technology, Jagdish Kharel.
Sources further claim that senior officials of Classic Tech are in regular contact with the authority’s chairperson. The regulator is reportedly delaying action due to concerns that the situation could mirror the collapse of Smart Telecomx.
“When the authority formed a management group to run Smart Telecom, the company collapsed. Its assets remain unmanaged, and state revenue was not collected. Fear of repeating that outcome has weakened regulation,” a senior authority official told TechPana.
As a result, Classic Tech’s customers face growing uncertainty. The company’s service could be declared illegal or shut down at any time. If the license is revoked, more than 250,000 users could lose internet access. This could raise serious concerns about citizens’ right to access telecommunications services.
There is also uncertainty over refunds for customers who have paid in advance. Customers may face additional financial burden when switching to another service provider. If services are shut down, users may neither receive the service they paid for nor get their money back.
Employees dependent on the company, lending banks, and financial institutions could also be affected.
An authority director said it is difficult to protect customers of unlicensed service providers. “If a company has no license, enforcing consumer protection becomes extremely challenging. Refunds, compensation, and penalties are hard to implement. This ultimately harms consumers,” the director said.
As an unlicensed operator, Classic Tech is not legally bound to meet service quality standards. Customers may face issues related to bandwidth, latency, and uptime commitments without regulatory recourse.
The company’s lack of regulatory facilitation has also limited its ability to invest in service improvement and expansion. As a result, its services are reportedly falling behind in quality.
Santosh Sigdel, Executive Director of Digital Rights Nepal, said the regulator bears primary responsibility. He said regulatory failure has put customer rights at risk.
“The regulator failed to act on time and enforce the law. The ministry and the government are also responsible for not holding the regulator accountable. Because of this inaction, customers’ access to information and freedom of expression are at risk,” Sigdel told TechPana.
पछिल्लो अध्यावधिक: पुस १०, २०८२ २०:१७
