Minister Baskota announces to reduce Nepal Telecom’s Internet price

Minister of Communication and Information technology (MOCIT) has announced to reduce the Internet price to the customers. Minister of MoCIT plans to reduce Ntc Internet price by cutting internet bandwidth costs from abroad.

One of the most expensive costs on the Internet is the bandwidth that the operator buys from abroad. Nepal buys internet bandwidth from India and China. The current cost of 1 Mbps internet bandwidth is 18 USD. He commits to reducing the price to 12 USD per 1 Mbps within 7 to 10 days.

As per Minister Baskota, the internet price when he joined Ministry, was $30. With the agreement with the provider, he said that they have reduced the price to $18. After more discussion, they are going to cut down the bandwidth cost by $6 to $12. With the reduction, they will bring more internet bandwidth at the same cost, increasing the internet speed.

Minister says it will be beneficial to both the operator and customers. Out of $6 reduction, they can increase the internet bandwidth using $2. They can decrease the cost of internet to customers using $2. Ultimately the company will make $2 profit from the internet cost reduction.

If we do the analysis for how much percentage the price cut be, $2 reduction out of $12 is 16.7 %. So, we can expect the price cut of the same value of 16.7%. From this Fiscal year, addition of TSC in internet increased its price. But later with some agreeement, the home internet price was revoked but the mobile internet price hike remained the same. Talking about internet price, we do not know whether it is fixed or mobile internet that Minister Baskota refers to.

There is a huge outcry in public for the high internet price. If the above price reduction course works, the usage of the internet will also increase benefitting the operator more.

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