KATHMANDU: The government is preparing to overhaul the existing system for renewing telecommunications licenses, replacing the current large lump-sum fee with a revenue-based model.
The draft Integrated Telecommunications Policy, 2083, prepared by the Nepal Telecommunications Authority, proposes that license renewal fees be determined as a fixed percentage of a telecom operator’s annual revenue.
The draft explicitly proposes setting the renewal charge at a certain percentage of annual income, meaning service providers would pay renewal fees according to their earnings rather than a fixed, hefty amount.
The Ministry of Communication and Information Technology and the Nepal Telecommunications Authority are expected to amend the necessary legal provisions within the next six months.
Telecom operators have faced significant financial pressure under the existing high renewal fees. Several companies have struggled to meet their license-related financial obligations, pushing some into severe financial distress. The proposed revenue-based system is expected to reduce this burden and make renewal payments more proportionate to operators’ financial capacity.
50 Mbps broadband targeted for 80% of population
The draft policy also aims to make broadband internet faster and more affordable.
It proposes extending minimum 50 Mbps broadband access to 80% of the population within five years and 98% within 10 years.
The government also plans to bring the cost of entry-level broadband services below 2% of per-capita gross national income within five years and below 1.5% within 10 years.
Mobile number portability proposed
The policy proposes introducing mobile number portability, allowing customers to switch telecom operators without changing their existing mobile numbers.
It also proposes affordable internet packages for low-income groups, women, persons with disabilities and marginalized communities under a broader digital inclusion program.
Unified licensing and foreign investment
The government plans to replace separate telecom licenses with a unified licensing system to simplify regulation and make the sector more competitive.
The draft also seeks to attract foreign investment while requiring at least 20% domestic participation in telecom investments.
Radio frequency allocation would be made more transparent through auctions and market-based, time-sensitive pricing mechanisms.
5G, AI and stronger cybersecurity
The policy proposes opening the sector to testing and commercial deployment of emerging technologies such as 5G, Internet of Things (IoT) and artificial intelligence (AI).
At the same time, operators would be required to strengthen customer data protection. The government also plans to establish a Computer Security Incident Response Team (CSIRT) to address growing cybersecurity risks.
To reduce duplication of investment in telecommunications infrastructure, the draft promotes infrastructure sharing. It also proposes making ducts for optical fiber mandatory along roads and highways, enabling multiple operators to use shared infrastructure.
Overall, the proposed policy seeks to reduce the financial burden on telecom operators, expand affordable high-speed internet access, improve consumer choice and create a more investment-friendly and technologically advanced telecommunications sector.
