- Nepal's electricity authority raised utility pole rental fees by 5.85%, impacting ISPs.
- ISPs warn this will necessitate internet price increases for consumers.
- ISPAN plans to petition the Supreme Court and negotiate with authorities.
Nepal’s internet service providers (ISPs) have warned that the recent hike in utility poles could lead to a rise in internet prices. The country’s leading ISPs issued the warning after Nepal Electricity Authority (NEA) raised pole rentals by 5.85%.
Just recently, the NEA raised pole rent fees after five years, affecting ISPs, telecom, cable TV providers, etc. Various service providers use NEA poles to run cables to their customers to provide services. ISPs, likewise, run fiber cables on the poles to provide internet and digital TV services. Now, they will need to pay slightly more to NEA for running cable and other equipment on the poles.
ISPs state internet price will rise with a higher NEA pole rate
ISPs and their umbrella association ISPAN have suggested that the rise in pole tariffs will ultimately increase internet prices for customers. An ISPAN official also claimed that the government had no discussion with them for the pole rental raise. There is also a long-standing dispute between ISPs and NEA over pole rental fees.
An ISPAN official also said that increasing the pole fees on ISPs while the case regarding it is pending at the Supreme Court is a contempt of the court itself. He said that ISPAN will file a petition in the Supreme Court.
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At the same time, ISPAN plans to discuss the matter with NEA and the regulator, Nepal Telecommunications Authority (NTA). ISPAN suggests that the pole tariff hike will directly result in the internet price.
