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New Pole Charges by NEA will Increase Internet Prices!

Nepal Electricity Authority (NEA) has announced new rental charges on utility poles for Internet and Cable TV providers. As is reported, the revised fare is already effective from Magh 2 and ISPAN chief has warned the new charges will inflate internet costs.

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.

New Pole Charges by NEA

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 line66kv33kv
Annual Charges on Fiber per CoreNRs. 32,000NRs. 30,000

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

Poles Rental ChargesRural AreasUrban Areas
Previous ChargesNRs. 50NRs. 200
Revised ChargesNRs. 200NRs. 300

NEA has already hiked its rental charges for using its infrastructures in 2075 BS amidst an uproar. Despite being surrounded by all-around 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 are upheld it will increase the operational costs of the ISPs. As a consequence, That will also result in an increase in 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 in 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.

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