Internet service providers (ISPs) in Nepal have requested a five-year installment plan to settle outstanding dues owed to the government under royalty and the Rural Telecom Development Fund. This appeal follows a Supreme Court ruling last December in favour of the government, concluding a long-standing dispute.
WorldLink Communications, the largest debtor with nearly Rs 2 billion in dues, has already cleared its payments. However, other ISPs collectively owe approximately Rs 2 billion and have sought installment facilities, according to the Nepal Telecommunications Authority (NTA).
The Internet Service Providers’ Association of Nepal (ISPAN) formally submitted a request to the NTA some days ago, seeking approval for a five-year installment plan. ISPAN’s former chairman, Sudhir Parajuli, confirmed the request, citing the court ruling as binding but arguing that full payment immediately is unfeasible.
“We have been informally seeking this arrangement for over a month,” Parajuli explained. “Institutionally, our umbrella organization, ISPAN, submitted a formal request three days ago, and we are now waiting for a response.”
Parajuli, who also chairs Subisu, clarified that it is impossible for companies like Subisu to settle eight years of dues in one go, particularly as most ISPs lack foreign investment.
NTA Director Santosh Paudel stated that no discussions have taken place regarding the ISPs’ installment request. He noted that since there are no legal provisions for such arrangements, only a Cabinet decision could authorize the NTA to provide this facility.
On Thursday, the NTA issued a public notice instructing ISPs to clear their dues by mid-January or face legal action.
Telecommunication service providers in Nepal are legally required to contribute 4% of their total revenue as royalty and 2% to the Rural Telecom Development Fund. However, service providers have long argued that earnings from maintenance and related services should be exempt from such taxes, leading to years of non-payment.
The Supreme Court’s decision now compels ISPs to clear these long-standing dues.
The government has restricted ISPs from accessing foreign exchange facilities due to unpaid dues. These restrictions previously caused significant disruptions. For example, on May 2, Airtel India, a major bandwidth provider, suspended services, drastically reducing Nepal’s internet speed.
Although government intervention restored bandwidth supply, financial difficulties persist.
“We still owe a significant amount for bandwidth payments. The situation remains precarious, and internet services could be disrupted at any moment,” Parajuli warned.
