Nepal is one step closer to launching 5G services after the Nepal Telecommunications Authority (NTA) forwarded the long-pending 5G frequency auction file to the Ministry of Communication, Information and Technology for a policy-level decision. Once approved, the regulator will issue a public auction notice, allowing eligible telecom operators that have cleared their dues to bid.
According to NTA deputy director Pradip Paudyal, the regulator has already completed the work procedure for the auction, covering spectrum allocation, pricing, distribution processes and the auction modality. Nepal has opted for technology neutrality, meaning operators can use the 1800 MHz and 1900 MHz bands for either 4G or 5G services based on their rollout strategy.
Nepal Telecom’s earlier attempts to launch 5G—first planned for July 2021—faced repeated delays despite regulatory approvals. The company has now finalised its internal 5G rollout plan, which could be deployed via a non-standalone (NSA) model using its existing Huawei-powered 4G core, or a standalone (SA) model that would require a new procurement process. Limited NSA trials have already taken place using existing equipment.
Speculation has persisted for years that geopolitical tensions have slowed Nepal’s progress, particularly due to the involvement of Chinese vendors ZTE and Huawei in Nepal Telecom’s nationwide 4G expansion. Both suppliers were also expected to provide free 5G trial equipment. Nepal Telecom has repeatedly denied geopolitical interference.
The operator has formally requested 80 MHz of 5G spectrum free of cost, a proposal still pending NTA’s response. Nepal currently has nearly 26 million 4G users and around 835,000 3G subscribers across Nepal Telecom and private operator Ncell.
Ncell, meanwhile, has highlighted three conditions for a sustainable 5G rollout: shifting to subscription-based data models, reducing heavy telecom taxes that consume up to 60 percent of revenues, and ensuring long-term investment security—especially as Ncell is due to transfer to government ownership in 2029.
Experts warn that AI adoption and increasingly 5G-only smartphone models will make 5G essential, but operators argue that Nepal’s economy and consumer readiness remain weak. Nationwide 5G deployment could cost Rs50–60 billion, prompting calls for the government to waive or heavily reduce spectrum fees to make rollout financially viable.
