Last Updated on August 16, 2025
Nepal Telecom (NTC) is building an optical fiber backbone network in Gandaki and Lumbini provinces. Telco regulator Nepal Telecommunications Authority (NTA) awarded the contract for the project, which would cost Rs 1.77 billion (excluding taxes).
An agreement for the major project was signed on Friday, August 15, 2025, between NT and NTA. The latter will now provide the government-backed telecom giant a grant of Rs 1.77 billion for the project. NT has received the project’s responsibility after UTL couldn’t proceed with it and later got its license revoked. The project utilizes RTDF (funds) which comes from telecom companies’ annual fee to the regulator.
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Nepal Telecom will expand the backbone fiber network in Gandaki and Lumbini
Nepal Telecom will build 1915 kilometers of optical fiber network in Gandaki and Lumbini provinces. The total length for the entire project was 2,117 kilometers before. However, the project was in the works for ten years. During this time, Ntc already extended its network for a large distance, hence a reduction in the size of the network expansion.
As per the agreement, the company will start the construction of the backbone network this year (2082). The plan is to complete it in the next three years, which would be 2085.
The expansion of the network will help extend reliable telecom services to 23 districts in Gandaki and Lumbini provinces.
An optical fiber network will help connect and improve cellular services, fiber internet, TV, and other digital services. It will unlock faster, more reliable, and capable connectivity for communications.
NTA and NTC regularly collaborate for backbone networks. Earlier, Ntc completed the Mid-Hill optical fiber network in Koshi Province. And for other provinces too, works are underway from Nepal Telecom for the optical fiber backbone (information highway) projects. Now, the two have joined hands for a similar project in Gandaki and Lumbini.
