Nepal could brace for a nationwide internet shutdown as internet service providers (ISPs) fail to pay their upstreamers for the bandwidth. The issue not an isolated one though, has emerged once again as the government refuses to provide ISPs with foreign currency recommendations so that they can pay their bandwidth providers.
Organizing a press conference today Thursday, April 25, the Internet Service Providers Association of Nepal (ISPAN) raised the possibility of an internet shutdown in Nepal. The body said that the government hasn’t allowed foreign currency recommendations for 1 year and that has barred the ISPs from paying their bandwidth fare to their bandwidth providers. Nepal’s internet service providers have Rs 3 billion to pay to their Indian bandwidth providers.
ISPAN chairman Sudhir Parajuli said that the partnership with Indian upstreamers could end in the current status quo. Pinning the blame on the Ministry of Communication and Information Technology (MoCIT) for not recommending foreign currency exchange for nine months, he said the situation could lead to an internet outage in the country. “In the absence of no payment, the deal with Indian bandwidth providers will terminate itself,” Parajuli warned.
Parajuli added that Airtel which contributes to 70% of the bandwidth to Nepal sent a letter that it will suspend further bandwidth if it doesn’t receive payment. Therefore, he requested the government to recommend foreign currency exchange for the ISPs immediately.
Also read: ISPs to Issue Separate Bills for Internet and TV Services
Nepal could face internet shutdown as the government refuses foreign exchange recommendation
The issue emanates from ISPs and the government over the non-payment of outstanding dues under the Internet service support and maintenance title. ISPs have remained adamant that the support and maintenance fees aren’t subject to taxes for royalty and RTDF. MoCIT, however, is seeking fees under the same. The issue has raged for months but both the ISPs and the government have stood their ground which has escaped a resolution.
Service providers have been issuing invoices separately for internet and maintenance for a long time based on court orders, revised telecommunication regulations and provisions made by the Economic Act, and the repeated reports of the Public Accounts Committee.
ISPAN also lamented the state “not understanding” the sensitivity of the internet service. The internet body expressed its bemusement over the government stopping foreign currency recommendations, not renewing licenses, and not facilitating ISPs.
Likewise, ISPAN also stated that the private sector is receiving inconveniences while it should get encouragement from the government.
ISPAN sees a discrepancy in the state behavior
Customarily, ISPs must obtain foreign currency exchange recommendations from MoCIT and Nepal Rastra Bank (NRB). ISPAN however said that the government-backed service provider can directly go to the bank for foreign currency exchange. The government seems to have two standards when it comes to the government-backed and private companies, ISPAN said in its statement.
In 2022 May too, India upstream Tata had warned that it would halt bandwidth to Nepal which required government intervention to diffuse the situation. Now, the same condition has emerged for similar reasons.
Check out: Reasons for not getting the home WiFi internet speed as promised by ISPs
What’s your take on the ISP and the government issue which has again emerged possibly leading to the internet shutdown in the country? Is it lacking any seriousness and coordination to resolve the matter? And who should be responsible for cutting off the internet supply on the paying customers? Do offer your perspective on the matter in the comments below.
