Ncell Warns of Bandwidth Suspension Over Classic Tech’s Unpaid Dues

Ncell has warned of suspending bandwidth services to Classic Tech, Nepal’s fifth-largest fixed broadband internet service provider, after the company failed to clear dues worth over Rs 300 million for more than a year, sources said.

Classic Tech is one of Ncell’s major wholesale bandwidth customers. Ncell purchases internet bandwidth in bulk from international suppliers and sells it to domestic internet service providers (ISPs). Dish Home is another major client, according to Ncell officials.

Sources close to Ncell said Classic Tech has not paid more than Rs 300 million in bandwidth charges over the past year. Despite repeated requests for payment, the dues remained unsettled, prompting Ncell to send a formal notice last week warning of contract termination and suspension of bandwidth services.

“The company has been asked to clear all outstanding dues within 30 days,” a source said. “If the payment is not made, the agreement will be terminated and bandwidth services will be halted.” The notice also warns of legal action to recover the outstanding amount.

Ncell and Classic Tech had signed a Master Service Agreement, which came into effect on March 25, 2024.

“The large outstanding amount has also put Ncell in a difficult position,” the source said.

A senior official at Classic Tech acknowledged that payments to Ncell remain pending. Speaking on condition of anonymity, the official said discussions were underway to settle the dues.

“We are in talks and expect the issue to be resolved soon,” the official said, attributing the delay to the broader economic slowdown that has affected internet companies as well. He said Ncell should not disrupt services over the outstanding amount.

“Even if Ncell suspends bandwidth, we have multiple alternatives and will explore other options,” the official said. “We will not allow services to be disrupted.”

Classic Tech provides fibre-optic internet services through FTTH technology. According to data from the Nepal Telecommunications Authority, Classic Tech had 268,000 subscribers as of mid-December 2025, accounting for 7.98 percent of the country’s broadband internet market.

As per Care Ratings Nepal, Classic Tech recorded a turnover of Rs 921 million in Fiscal Year 2023/24, down 3.15 percent from Rs 951 million in FY 2022/23. The company had posted revenues of Rs 872 million in FY 2021/22.

The rating agency said the company’s financial indicators have been affected by high capital expenditure requirements, dependence on revenue from retail customers, and regulatory costs such as royalty and telecommunications development charges.

It also noted that rapid technological changes and competitive pricing pressures have posed additional challenges. However, Care Ratings cited experienced management, stable operational performance, improved profit margins due to lower bandwidth costs, and a moderate debt structure as key strengths of the company.