Government Preparing to Roll Out 5G Services: Secretary Aryal

The Government of Nepal is preparing to introduce fifth-generation (5G) mobile services amid questions over the high cost of deployment, uncertain returns for service providers and delays in key policy decisions.

Secretary at the Ministry of Communications and Information Technology Radhika Aryal revealed that preparations are underway to launch the 5G mobile services in Nepal.

Addressing the 18th Annual General Meeting (AGM) of Nepal Doorsanchar Company Limited (Nepal Telecom), Aryal said the government is preparing to introduce 5G services in Kathmandu and other major cities in the near future. Although Nepal Telecom has long maintained that it is preparing for 5G, tangible progress has yet to be seen.

Speculation has persisted that the government has been unable to take a decision on 5G equipment due to pressure from global powers, including the United States, over the possible use of equipment from Chinese firm Huawei. However, government and Nepal Telecom officials have not clarified the issue. At present, most equipment used in Nepal’s 4G network is supplied by Huawei.

The current fiscal year’s budget has also announced plans to roll out 5G services in Kathmandu and other major urban centres. However, Nepal Telecom has yet to specify when the service will be launched. Nepal Telecom officials say no final decision has been reached. Nepal Telecom spokesperson Rabindra Manandhar said that while feasibility studies have been completed, a decision is still pending. “We are optimistic that the government will move forward based on the study,” he said.

With the state-owned telecom remaining undecided, private sector operator Ncell has also said that an enabling environment for 5G investment has not yet been created. A senior Ncell official said that introducing 5G would require an investment of around Rs 70 billion, but declining revenues due to reduced voice call usage has made service providers uncertain about returns on such large investments. He stressed the need for government support to improve the investment climate.

At the AGM, Chairperson Aryal said Nepal Telecom has expanded modern telecommunications services to 749 local levels across all 77 districts in the country. She said nationwide expansion of high-speed 4G services was completed by mid-July 2025. During the review period, 143 new 2G and 109 new 3G base stations were added. Currently, the company operates 4,542 2G, 2,994 3G and 4,437 4G base stations.

The AGM unanimously approved a cash dividend of Rs 30 per share from profits earned in fiscal year 2024/25. Shareholders representing about 91.56 percent of total shares participated in the meeting. The AGM also endorsed the board’s annual report, auditor’s report, balance sheet as of mid-July 2025, profit and loss account, cash flow statement and other related schedules.

Aryal said the company is prioritising the construction of an information superhighway through optical fibre, promotion of e-governance and reduction of the digital divide. She also said additional capital could be raised through bonus shares if required for future mega projects.

During the review period, Nepal Telecom earned total revenue of Rs 38.19 billion and recorded a profit of nearly Rs 6 billion. Of the total income, Rs 18.46 billion was paid to the government in taxes and fees, contributing to the national economy.

She added that the company continues to prioritise income assurance, performance and technical testing to mitigate risks, while supporting environmental protection, health, education and sports under its corporate social responsibility initiatives.

With support from the Rural Telecommunications Development Fund, optical fibre has been expanded along the Mid-Hill Highway and roads connecting district headquarters in Koshi, Madhesh and Bagmati provinces. By the end of fiscal year 2024/25, the company’s fibre network had reached a total length of 8,834 kilometres.

Noting the global decline in demand for voice services and growing challenges from over-the-top (OTT) platforms, Aryal said Nepal Telecom is focusing on service transformation in line with technological changes. She said the company plans to expand its market share by improving data service quality and adopting cost-effective strategies in collaboration with national and international partners.

The company said dividend payments approved by the AGM will be distributed to general shareholders through NMB Bank starting Wednesday.