Nepal’s leading Internet Service Providers (ISPs), including WorldLink and Vianet, offer free WiFi mobility services through hotspots that allow users to connect to the internet on the go without purchasing mobile data packs. While this service enhances customer satisfaction and promotes ISP brands, it has reportedly caused a significant revenue loss of Rs 14 billion annually for Nepal Telecom (NTC) and Ncell, the country’s main telecom operators.
Telcos argue that free WiFi hotspots reduce mobile data consumption drastically, contributing to weaker financial performance. Nepal’s average per-user data consumption stands at about 6 GB per month, far below India’s 20 GB. Both NTC and Ncell have publicly criticized ISPs’ unlimited hotspot services for impacting their earnings. The Nepal Telecommunications Authority (NTA) regulates that WiFi hotspots should have limited data volume and time usage, but many ISPs provide unlimited access, exacerbating the issue.
A major point of contention is the licensing fee disparity: telcos pay Rs 20 billion annually for license renewal, whereas ISPs pay only Rs 2.7 lakh. This imbalance has intensified telcos’ grievances over free WiFi hotspots.
ISPs, however, defend their services as legal and aligned with government initiatives, citing government-funded WiFi projects in public places using Rural Telecommunications Development Fund (RTDF) resources. ISPAN chair Sudhir Parajuli highlighted uncertainties around regulatory responsibilities and security guarantees.
Meanwhile, NTA chair Bhupendra Bhandari has expressed intentions to shut down free WiFi mobility services, signaling potential future restrictions that may compel users to purchase mobile data packs for internet access outside home or office premises.
