Internet users across Nepal are facing a significant change from today as Internet Service Providers (ISPs) begin withdrawing some of their low-cost, low-speed broadband packages.

The Internet Service Providers Association of Nepal (ISPAN) announced that affordable, low-speed packages would no longer be offered from Monday, October 5 (Ashoj 19, 2083). The announcement has raised concerns among customers who depend on inexpensive internet connections for basic browsing, education, communication and everyday digital services.

Why Are Cheap Internet Packages Being Discontinued?

According to ISPAN, internet providers are facing significantly higher operating costs compared with previous years.

The association has pointed to several factors, including:

  • Rising prices over recent years
  • Higher fuel costs linked to tensions in West Asia
  • Increased optical-fibre prices
  • High inflation
  • Rising prices of electronic equipment
  • Increased chipset costs
  • Rapid developments in artificial intelligence (AI)

ISPAN says these factors have made it increasingly difficult for providers to continue offering some low-priced packages at their previous rates.

Is This an Official Internet Tariff Increase?

This is an important distinction.

ISPAN has said that the move does not mean that ISPs are free to increase internet prices whenever they want. Instead, the association says providers are moving away from discounted prices and toward the tariffs approved by the Nepal Telecommunications Authority (NTA).

ISPAN President Sudhir Parajuli said that providers had been offering some services below regulator-approved rates because of intense competition in the market.

At the same time, the NTA has made clear that internet providers cannot arbitrarily charge customers more than approved tariffs.

What Happens to Existing Customers?

The exact impact will depend on the internet provider and the customer's current package.

For example, CG Net has informed customers that some existing packages would be discontinued from October 5 and replaced with revised packages. According to reporting by New Business Age, customers may continue using their existing package until its renewal, after which the new applicable rate may take effect.

Therefore, customers should check their ISP's latest package and tariff information before renewing their connection.

NTA-Approved Rates Should Be Visible

ISPAN has directed internet service providers to clearly display the tariffs approved by the Nepal Telecommunications Authority on their websites.

The NTA also maintains an official list of approved ISP tariffs.

This gives customers an important way to check whether the amount they are being charged corresponds to an approved tariff.

Customers Should Ask for a VAT Bill

ISPAN has also urged internet customers to make sure they receive a VAT bill when paying for their internet service.

Customers should therefore keep their bills and payment records, particularly when there is a difference between the advertised package price and the amount appearing on the bill.

Who Could Be Most Affected?

The withdrawal of inexpensive packages could have a greater effect on people who do not require very high internet speeds.

These may include:

  • Students using the internet primarily for study
  • Families with limited internet requirements
  • Senior citizens
  • Users who mainly browse websites and use messaging services
  • Small users who do not need high-bandwidth services

For these customers, being required to move to a higher-priced or higher-speed package could increase their monthly household expenses.

Nepal’s Digital Future vs. Affordable Internet

The development comes at an interesting time for Nepal's digital transformation.

The government is seeking to expand broadband access and improve digital infrastructure. The NTA has also set a target of providing broadband internet with a minimum speed of 50 Mbps to 80 percent of the population within five years.

This creates an important policy question:

How can Nepal provide faster and better internet while keeping it affordable for ordinary citizens?

High-quality broadband is increasingly important for education, employment, online businesses, digital payments, government services and communication. At the same time, affordability remains essential if digital transformation is to benefit everyone.

What Should Internet Users Do Now?

If you are currently using a low-cost internet package, it is worth taking a few simple steps:

1. Check your current package.
Find out whether your existing plan is among those being discontinued or revised.

2. Check your ISP's official tariff information.
Compare the price you are being charged with the provider's published and NTA-approved rates.

3. Ask about the renewal price.
Do not assume your current promotional price will continue after renewal.

4. Request a VAT bill.
Keep the bill as proof of payment and the service price.

5. Compare available packages based on your actual needs.
A higher-speed package is not necessarily necessary for every household.

6. Contact the NTA if you believe you are being overcharged.
The regulator has stated that ISPs cannot arbitrarily charge above approved tariffs.

The Bigger Picture

Nepal's internet market has changed dramatically over the past several years. Competition among ISPs helped bring higher speeds and relatively affordable broadband to millions of users.

The latest development could mark another stage in that evolution, with providers arguing that current operating costs make some low-priced packages unsustainable.

For consumers, however, the key issue is affordability.

As Nepal moves toward a more digital economy, internet access is no longer simply a luxury. It is increasingly connected to education, work, business, communication and access to public services.

The challenge for Nepal will therefore be to find the right balance between sustainable ISP operations, investment in better infrastructure and affordable internet access for ordinary users.

Bottom Line

The withdrawal of some low-cost, low-speed packages does not mean ISPs can freely set whatever prices they want. Customers should check their provider's current package, verify the applicable NTA-approved tariff, ask for a VAT bill and understand what price will apply when their subscription is renewed.

For millions of Nepali internet users, the real question now is not simply “How fast is my internet?” but also “How affordable will internet access remain?”