As the world advances to fifth-generation (5G) mobile network, 11.53% of Nepal's population still relies on 2G services, according to a report by the Nepal Telecommunications Authority (NTA) as of mid-January 2025. While 4G networks are available in most areas of Nepal, some regions still depend on 2G due to the absence of 3G or 4G coverage.
The NTA data reveals that 3,362,296 Nepalis are 2G users. In comparison, only 923,656 people, or 3.17% of the population, use 3G services. Meanwhile, 4G dominates with 25,075,419 users, accounting for 85.98% of the total population. Despite being the first South Asian country to roll out third-generation (3G) services, Nepal has yet to introduce 5G commercially.
Globally, 5G has been commercially available for five years, offering significantly faster download speeds than its predecessors. However, Nepal has not established a clear timeline for its rollout. While some advanced nations are preparing for sixth-generation (6G) networks, Nepal remains uncertain about its 5G future.
Telecommunication companies, including Nepal Telecom and Ncell, face declining revenues and increased costs for upgrading to 5G. Service providers cite the lack of a clear legal and policy framework as a major obstacle. According to them, upgrading 5G infrastructure would require significant investments in physical infrastructure, spectrum fees, and operational costs, with limited prospects for increased income.
A senior official at Nepal Telecom stated, "The Nepal Telecommunications Authority has not clarified the fees for 5G frequencies or other related policies. Without clarity, we cannot proceed with the upgrade, even though we are technically prepared."
The NTA had granted Nepal Telecom permission to conduct 5G trials in March/April 2021 (Chaitra 2077). For the trials, the authority provided 60 MHz of frequency under the 2600 MHz band free of charge for one year, with conditions such as offering free 5G services during the trial period and withdrawing the frequency if there was no progress in importing and installing equipment within three months. Despite two years having passed, Nepal Telecom claims that its 5G study is ongoing, with no definitive timeline for commercial launch.
Some analysts attribute the delay to geopolitical factors, speculating that American and Indian interests may be influencing the process, as Chinese companies Huawei and ZTE are potential candidates for the 5G expansion contracts.
Telecom operators have urged the government to revise state policies and provide a conducive framework for 5G development. However, until the Nepal Telecommunications Authority finalizes policies on fees and other regulatory aspects, service providers remain in a "wait-and-see" mode.