ISPs preparing to increase internet fees starting from Jan 2019

internet-charges-hike

The internet service providers (ISPs) have urged the government to raise the price of internet services from January.

Citing that government had failed to implement various commitments it had made to ISPs earlier, they have submitted a letter to Ministry of Communications and Information Technology asking the government to increase internet fees from the beginning of 2019.

In line with the government’s decision to impose 13 per cent telecommunication service charge on internet services from this fiscal, ISPs had raised internet fees by almost 14 per cent from mid-July. However, after government piled pressure on them, ISPs had revoked their decision to hike the internet fees. ISPs had agreed to revoke their decision also because government had expressed its commitment to adjust 13 per cent telecommunication service charge on ISPs through other means.

However, ISPs are preparing to hike internet fees after the government did not show any interest in implementing its earlier commitment.

“The 13 per cent service charge has been adding financial pressure on ISPs. As neither the government nor
Nepal Telecommunications Authority are keen in addressing our problems, we will be compelled to raise internet fees,” said Sudhir Parajuli, former president of Internet Service Providers’ Association, adding that internet cost will go up from January if MoIC fails to address ISPs’ concerns.

ISPs have been claiming that they revoked their earlier decision to raise internet fees as government had pledged to revise other taxes being levied on the internet industry.

On the other hand, the government has said that ISPs will not be allowed to raise internet fees against the backdrop of falling global bandwidth price. Minister for Communications and Information Technology Gokul Baskota, had criticised the ISPs for not adjusting internet fees in line with the international bandwidth cost.

“Even though global internet bandwidth cost has been dropping Nepali internet subscribers have not been able to benefit from it. ISPs do not have any logical ground for raising fees,” he had stated.

Related Post

ISPs free internet home users from 13 percent TSC The government on Thursday decided to roll back its earlier decision to raise internet fees by 13 percent. The decision to this effect was made...
ISPs share infrastructure to compete with big telecom operators Internet service providers (ISPs) have come up with a new idea of infrastructure sharing to compete with big telecom operators offering data service...
Nepal’s 75 districts to be connected by optical fibre in 3 years The government will soon invite tenders to expand the optical fibre network to all 75 districts. The Nepal Telecommunication Authority, the regulato...
ISPs misusing IP telephony by making local calls in Nepal Some of the internet service providers (ISPs) licensed for operating IP telephoney have been found to be involved in illegal activity of making local ...
Internet providers lost 60pc market share in five years Internet service providers (ISPs) have lost 60 percent market share over the last 5 years, with telecom companies offering newer internet services a...
Government preparing to introduce Voice over Broadband(VoBB) in Nepal The government is preparing to introduce a new voice service along with broadband internet facility. Recently, Nepal Telecommunications Authority ha...
Maximum subsidy for expansion of optical fibre link The Nepal Telecommunications Authority (NTA) has fixed the maximum subsidy for expanding the optical fibre link to all the districts in the country...
ISPs finding it hard to compete with ADSL internet service in Nepal Internet service providers (ISPs) are finding it hard to stay afloat with the massive expansion of ADSL internet service and increased trend of usin...
Use of internet bandwidth increasing Nepal is witnessing an explosion of international internet bandwidth. Capacity on Internet links connecting to the world have increased extensively...
Government monitoring internet subscribers using 1Mbps or more bandwidth The government has been putting 1Mbps or more bandwidth users under scanner to control illegal Voice Over Internet Protocol (VOIP), according to Nep...
WiMAX-based high-speed internet project: Nepal Telecom in final preparation stages Nepal Telecom (NT) is undergoing final preparations for taking the high-speed broadband internet service based on Worldwide Interoperability for Mic...
ISPs hike Internet charges in Nepal The government has clarified that Internet Service Providers (ISPs) are not allowed to raise price of Internet services that they are providing to...
Internet subscribers touch 3.11 million: NTA The consumers of data and internet services reached to 3.11 million until mid-July with overall 10.89 per cent internet penetration rate, according ...
ISPs move to regain lost market with price cuts Internet service providers (ISPs) have been aggressively offering low-priced high speed internet service packages in response to telecom companies e...
Mobile internet gets significant growth in Nepal Number of people with internet access in the country has increased significantly in the last five years, thanks to mobile technology that has made i...
NT to introduce cheaper broadband service by August Nepal Telecom (NT) is preparing to offer broadband internet service at a cheaper rate across the country through its Internet Protocol-based Code Di...
Ncell unveils new brand logo and website Ncell on Tuesday officially unveiled its new brand logo promising affordability and innovation. Managing director of Ncell Simon Perkins and CEO So...
You might also like