Last Updated on August 6, 2026
Summary✨
- Communication Minister Dr. Bikram Timilsina stated that ISPs must pay their dues to continue operations and renew licenses.
- ISPs are under financial strain, with ISPAN requesting payment in installments instead of lump sums.
- Minister hinted at potential mergers or acquisitions among ISPs due to low customer numbers and financial pressure.
- ISPAN urged the government to reconsider TSC and allow reassessment of tax assessments affecting ISPs.
- Failure to pay dues could lead to license termination and a halt in service operations for many ISPs.
Communication Minister Dr. Bikram Timilsina has remarked that internet service providers (ISPs) that haven’t paid their RTDF, royalty, and telecom service charge (TSC) can’t continue to operate their services. The statement comes just as the government starts collecting dues from the service providers.
On Wednesday (August 05, 2026), the minister held talks with ISPAN, the umbrella union for ISPs in Nepal, to discuss due collections. During the meeting, he made it clear that the government will collect the dues at any cost. But he also said that if the fees have been set unfairly, then the government will also reconsider them.
No dues payment, no license renewal
Minister Timilsina expressed that the ISPs that haven’t paid fees won’t have their license renewal and therefore won’t be able to operate their services. He said that companies simply can’t expect to continue without clearing their dues with the government.
Importantly, the minister also teased that ISPs merge or go in acquisition as they are in large numbers. This is not a new idea. The authority has been talking about ISPs’ mergers and acquisitions for a while. As per NTA’s Ashar 2083 report, many ISPs in the top 20 list have less than 1 lakh customers.
ISPAN on paying dues to the government
In response, ISPAN said that ISPs are under major financial pressure and paying dues of up to 5 years at once is not possible. The union demanded an installment-basis payment facility from the government.
ISPAN said that since the government has decided against renewing licenses for non-payers, ISPs’ service expansion and operations have been affected. It has requested the government to reconsider the TSC imposed on ISPs. Additionally, it has also demanded that the tax assessment made by the Large Taxpayer Office be provided with the opportunity to reassess.
In Nepal, ISPs need to pay taxes to the Internal Revenue Office, a 4% royalty to the Communication Ministry, and a 2% fee to RTDF via NTA.
But the market competition and domination of a few ISPs have strained the financial aspects of many ISPs. But as it stands, the failure to pay off their dues may likely result in the termination of their license and service operations.
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