NEA’s New Rental Charges Will Inflate Internet Prices: Warns ISPAN Chief

NEA’s Charges on Its Poles and Fiber Cable to Hard-Hit Internet Prices

Nepal Electricity Authority has issued a new set of rental charges on Internet and Cable TV providers for the use of their poles and fiber cables. As is reported, the revised fare is already effective from Magh 2.

The hike on these rental charges will have a direct consequence on Internet and Cable TV prices. Ultimately, the consumers will have to suffer the most brunt. The concerned authorities have warned.

Revised Rental Charges

According to the new regulations, NEA is set to charge double on Fiber cables running along the 66kv transmission lines. That is NRs. 32,000 before taxes. As for fiber optics on 33kv lines, it is set at NRs. 30,000 plus taxes annually.

Transmission line	66kv	33kv
Annual Charges on Fiber per Core	NRs. 32,000	NRs. 30,000

NEA also increased its rental charges on uses of utility poles. According to the reported costs, the charges for pole in rural areas will raise from NRs. 50 to NRs. 200 annually. Meanwhile, the charges for Metros increase from NRs. 200 to NRs. 300.

Poles Rental Charges	Rural Areas	Urban Areas
Previous Charges	NRs. 50	NRs. 200
Revised Charges	NRs. 200	NRs. 300

NEA has already hiked its rental charges for using its infrastructures in 2075 BS amidst an uproar. Despite surrounded by all round criticisms the charges that were multiplied by 500 times were upheld.

Do check out: Best ISPs in Nepal and Comparison

ISPAN Not Amused With The Rental Charges

Sudhir Parajuli, who chairs ISPAN (Internet Service Providers’ Association of Nepal) has rebuked the decision. The bemused chief lamented that NEA is illogically increasing its rental fares while they demand to reconsider the existing charges.

Branding the decision “contradictory”, he warned that it will have a direct hit on Internet costs. Kantipur reports quoting him that if the newly set charges is to uphold it will increase the operational costs of the ISPs. As a consequence, That will also result in the increase of internet prices.

In the end, the increased bills of the ISP will trickle down to the consumers. So, they claim it to be detrimental to consumers’ interest for not having affordable internet service. Find out the Challenges of ISPs in Nepal.

What do you think of the decision by the NEA on its infrastructure charges? How do you think this renewed tussle between the government and the ISPs conclude? Do leave your opinions in the comments section below.