Nepal’s telecom service providers – Ncell and Nepal Telecom – have collectively incurred losses of approximately Rs 1 billion due to the TikTok ban, Ncell stated on Wednesday, December 18.
During a presentation on the telecom sector’s current state, Ncell, the leading private telecom service provider, reported that the annual estimated loss for telecom companies stands at Rs 1.2 billion. With the ban lasting nearly 10 months, the total loss amounts to around Rs 1 billion.
“We estimated the financial impact based on data usage trends before and after the TikTok ban,” an Ncell official said. “Banning a popular app significantly reduces data consumption, directly affecting the financial performance of telecom companies like ours.”
The then Pushpa Kamal Dahal-led government imposed the TikTok ban on November 13, 2023, citing its contents as harmful to social harmony.
Read: From Ban to Praise: Nepal's Minister Now Backs TikTok
The decision faced strong opposition, with 14 petitions filed in the Supreme Court arguing it infringed upon freedom of expression. The Asia Internet Coalition (AIC), representing global tech giants like Google, Meta, Amazon, and Spotify, also criticized the move as inconsistent with international norms.
TikTok actively lobbied for the ban’s reversal, with Ferdous Mottakin, TikTok South Asia’s Head of Public Policy and Government Relations, personally appealing to the Nepali government and committing to comply with local regulations, according to sources.
Read: TikTok, Viber, We Talk Registered in Nepal
On August 22, 2024, the government led by Prime Minister KP Sharma Oli lifted the ban under specific conditions, including TikTok’s official registration as per Nepal’s directives. The Nepal Telecommunications Authority enforced the decision on September 6, 2024, instructing ISPs and mobile service providers to restore access to the platform.
Communications and Information Technology Minister Prithvi Subba Gurung stated earlier this month that TikTok was allowed to resume operations after pledging adherence to social responsibility standards, contributions to tourism promotion, IT development, and educational support.
Prior to the ban, there were reportedly around 2.2 million TikTok users in Nepal
