Last Updated on October 2, 2026
Summary✨
- ISPs in Nepal will discontinue low-speed and low-cost internet packages from Ashoj 19, 2083, due to rising operating costs.
- The Internet Service Provider Association of Nepal (ISPAN) highlights factors like high fuel prices and inflation affecting ISPs’ expenses.
- ISPAN urges ISPs to maintain service quality and display approved tariffs clearly on their websites despite the changes.
- Customers should request VAT bills when paying for internet services to ensure transparency in billing.
- The decision may be influenced by the Supreme Court ruling on ISPs, which could lead to increased costs for these providers.
Internet service providers (ISPs) in Nepal will stop offering low-speed and low-cost internet packages from Ashoj 19, 2083, citing rising operating costs and increasing prices of network equipment.
The Internet Service Provider Association of Nepal (ISPAN) has issued a notice stating that the continuous increase in costs over recent years has made it increasingly difficult for ISPs to maintain their operating costs and sustain their internet services.
In a statement, ISPAN said that internet access and affordability in Nepal have improved significantly over the past 12 years. The association said Nepal has made considerable progress in broadband penetration and accessibility, while internet services have remained relatively affordable compared to many other countries.
ISPAN also thanked internet service providers and their employees for continuing to provide essential connectivity, particularly during challenging periods such as the COVID-19 pandemic and the recent Bhotekoshi floods.
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Rising costs putting pressure on ISPs
ISPAN said several factors have pushed up the operating expenses of internet service providers in recent years. It has pointed to the rising price of fuel, a sharp increase in the cost of fiber, high inflation, and the increasing prices of electronic components and chipsets due to the rapid growth of artificial intelligence (AI).
According to ISPAN, the combined impact of these factors has made it difficult for ISPs to continue operating some of their existing packages at the current prices.
As a result, ISPs have said they will not be able to continue providing low-speed internet packages at comparatively low prices from Ashoj 19, 2083.
The association has requested customers to understand the situation and the possible inconvenience caused by changes to existing internet packages.
ISPs asked to maintain service quality despite stopping low-speed affordable internet packages
ISPAN has urged all ISPs to continue maintaining service quality despite announcing the discontinuation of affordable low-speed internet plans.
The association has asked ISPs to contribute to Nepal’s digital transformation by providing reliable and quality internet services.
ISPAN has also instructed service providers to clearly display their tariffs on their websites in accordance with the rates approved by the Nepal Telecommunications Authority (NTA).
ISPAN urges customers to take VAT bills
ISPAN has also requested internet users to receive VAT bills when paying for internet services. The association said customers should request VAT bills from their service providers as part of the billing process.
The latest notice comes as Nepal’s ISPs face growing pressure from higher infrastructure, equipment, energy, and other operating costs while continuing to provide broadband services at competitive prices.
ISPAN has expressed appreciation to customers and other stakeholders for their continued support and said ISPs remain committed to providing internet services despite the challenging operating environment.
Is it ISPAN’s response to SC ruling on ISPs?
Recently, the Supreme Court of Nepal dismissed ISPs’ writ against tax assessment. That means the government can now receive penalties from service providers. It’s being said that the verdict could force the companies to increase the internet price by up to 100%.
The decision to discontinue low-cost, low-speed internet plans could be a response to the SC verdict. The ISPs have to pay a large amount after the SC verdict. Therefore, ISPAN may have come to the conclusion of ending the low-speed packages as part of its cost-cutting measure.
Internet plans below 50 Mbps will be discontinued
Nepal’s current fixed broadband scene commonly has 3-digit internet plans. It’s a great reality for the country as the fiber internet landscape continues to improve. But still, many ISPs are providing 2-digit plans even below 50 Mbps. The current decision from ISPAN may hurt the pockets of subscribers who want low-speed packages on a budget.
“In the past, internet packages were sold at very low prices through unhealthy competition, going beyond the rates approved by the government. Now, we have decided not to sell packages with speeds below 50 Mbps,” ISPAN President Sudhir Parajuli said. “This will help maintain service quality while also establishing a minimum price for internet packages.”
If you are in a small family and don’t need high-speed internet plans at a higher tariff, then the current ISPAN decision may hurt your plans. Time will tell how the development unfolds.
