Nepal’s Internet Service Providers (ISPs) like WorldLink and Vianet offer free WiFi mobility services through hotspots across the country, allowing users to connect to the internet on the go without purchasing mobile data packs. However, telecom companies Nepal Telecom (NTC) and Ncell claim these free hotspots have caused a revenue loss of Rs 14 billion annually by reducing mobile data consumption.
The free WiFi service, intended by ISPs as a value-added offering to enhance customer satisfaction and strengthen their user base, conflicts with Nepal Telecommunications Authority’s (NTA) regulations. According to NTA bylaws, ISPs may provide hotspot access only at select locations with limits on data volume and usage time. In practice, ISPs provide unlimited access after login, intensifying telcos’ financial concerns.
Telcos also highlight a stark disparity in license fees: telecom operators pay Rs 20 billion annually for license renewal, while ISPs pay only Rs 270,000, adding to the sector’s financial imbalance. This situation has led to public statements by NTC and Ncell executives stressing the detrimental impact on telco revenues and calling for regulatory intervention.
ISPs, however, deny that their WiFi mobility services are illegal. ISPAN chair Sudhir Parajuli points to government investments in WiFi infrastructure—operated in over 220 locations via RTDF funds—and questions accountability for equipment security and regulatory clarity around license fees.
NTA has expressed intentions to shut down such free WiFi mobility services, with Chair Bhupendra Bhandari signaling the possible end of free hotspots, potentially forcing users to rely solely on paid mobile data packages moving forward.
