Govt Pushes 5G Launch amid Funding Concerns from Service Providers

After years of delays, the government has announced a new timeline for the rollout of 5G telecommunications services in Nepal. Minister for Communication and Information Technology, Prithvi Subba Gurung, said the service would begin in Kathmandu Valley and Pokhara Valley by mid-February, emphasizing that 5G is essential for accelerating the development and use of artificial intelligence (AI).

While most South Asian countries have already deployed 5G, Nepal has lagged behind. Minister Gurung stated that test operations will start in the two cities this year, with nationwide expansion targeted for completion next year. The government is also preparing to establish IT data centers and AI hubs across all seven provinces. He further noted that cities such as Bhairahawa, Biratnagar, Birgunj, Birendranagar, and Dhangadhi are likely to gain access as well.

Globally, some countries have already begun research on sixth-generation (6G) technology, and 5G Advanced is in operation. Gurung stressed that Bhutan has already introduced 5G and that Nepal cannot afford further delays.

Read: Nepal's 5G Rollout Stalls Amid Investment and Regulatory Challenges

Despite the government’s announcement, telecom operators appear less prepared. Nepal Telecom’s Deputy Manager, Brijesh Sharma, said the company has not reached a decision, citing high investment costs and ongoing evaluations. A committee has been formed to study 5G’s financial requirements, but Sharma noted that without sufficient capital, the operator cannot immediately commit to nationwide deployment.

He explained that using new frequencies or upgrading the existing 4G network to support 5G could provide a lower-cost option, which might align with the minister’s plan. However, rising operational costs and restrictive government policies have made telecom providers cautious about investing in new technologies. Ncell, the private operator, has already stated it cannot fund 5G from current revenues.

Nepal Telecom had previously conducted test runs of 5G, but while the state-owned operator is preparing for initial rollout, Ncell is yet to receive regulatory approval.