Nepal’s telecom sector is facing a deepening crisis as over-the-top (OTT) platforms continue to erode traditional revenue streams, according to a new industry study.
The report highlights a significant shift in user behaviour, with consumers increasingly relying on OTT services such as messaging apps, VoIP, and streaming platforms instead of traditional voice and SMS services. This transition is reducing core operator revenues while simultaneously driving higher data consumption.
Telecom operators are experiencing margin pressure as they invest heavily in network infrastructure to support rising data demand, but struggle to monetise usage at the same rate. The imbalance between infrastructure costs and revenue generation is becoming a growing concern for the industry.
The situation reflects a broader global trend where telecom providers are being pushed to rethink business models, shifting toward data-centric services, digital platforms, and ecosystem-based offerings. However, smaller markets like Nepal face additional challenges, including limited pricing power and regulatory constraints.
Industry stakeholders are calling for policy intervention and new frameworks to address the impact of OTT platforms, including potential regulatory measures and revenue-sharing models.
As digital adoption accelerates, the telecom sector’s ability to adapt to evolving consumption patterns will be critical to its long-term sustainability.
Editor’s Note:
OTT disruption remains one of the biggest structural challenges for telecom operators globally. Nepal’s situation highlights how smaller markets are more exposed to revenue erosion without strong monetisation alternatives.
