Nepal Telecommunications Authority Restricts Free WiFi Mobility Service to Licensed Providers

The Nepal Telecommunications Authority (NTA) has issued a notice clarifying that only telecom operators holding a basic telephone license, such as Nepal Telecom, or providers with special permission can legally offer seamless WiFi hotspot services that include roaming and mobility features. This effectively prohibits internet service providers (ISPs) from offering free WiFi mobility services, which are currently deemed illegal under existing regulations.

NTA’s WiFi Hotspot Operation Regulation 2075 requires providers to implement unique login systems and limit usage by time or data volume. Additionally, all WiFi equipment must comply with the Radio Frequency Policy 2080, including power output limits—maximum transmitter power of 1W (30 dBm) and maximum effective isotropic radiated power (EIRP) of 4W (36 dBm) for both 2.4 GHz and 5 GHz bands—and must have “type approval” from the authority.

The regulatory move aims to protect telecom companies suffering revenue losses due to free WiFi mobility services offered by ISPs like WorldLink, which currently operate thousands of hotspots across Nepal, enabling seamless internet access in public and residential areas. NTA Chairman Bhupendra Bhandari highlighted complaints from telcos about unfair competition, as ISPs pay much lower fees and don’t require spectrum licenses compared to mobile operators.

While free WiFi mobility benefits users by reducing mobile data consumption, its legality is questioned, and the move to end it seeks to level the playing field and curb revenue decline in Nepal’s telecom sector. Mobile data plans remain affordable alternatives, with providers like Ncell and Nepal Telecom offering cost-effective, secure, and reliable packages.

NTA warns of legal action against any violation of these provisions, including the use of high-power WiFi equipment in public areas. The fate of ISPs’ free WiFi mobility services now hinges on compliance with these regulations, and the authority’s notice signals a tightening of controls to balance market competition and regulatory standards.