Impact on Consumers as Nepal’s Internet Service Providers Discontinue Affordable Packages

Private internet service providers (ISPs) in Nepal have decided to discontinue affordable, low-speed internet packages starting Monday, a move expected to directly affect everyday consumers. The Internet Service Providers Association has justified this step by citing inflation and other challenges. Consumer rights advocates warn that once the cheaper packages are discontinued, users will have no option but to subscribe to more expensive plans. This decision is expected to impact a broad spectrum of users, from students to business people, leading consumer rights groups to criticize the move as abrupt and unfair.

A spokesperson for the government-owned Nepal Telecom stated that there are currently no plans to alter broadband internet service charges. The umbrella organization representing ISPs explained that the primary reason for removing low-cost packages is the rising operational costs. In a statement issued by the association’s president, Sudhir Parajuli, it was noted, “Price increases over the past years, rising fuel costs due to tensions in the Middle East, the high cost of fiber optics, elevated inflation rates, and rapid advancements in AI technology have led to sudden hikes in electronic components and chipset prices.”

This decision follows the Supreme Court’s recent dismissal of a writ petition filed by ISPs against a major tax authority office. Attempts to understand any connection between the court ruling and the ISPs’ recent decision were unsuccessful, as association officials did not respond to calls. Consumer advocates have condemned the move, with Vishnu Prasad Timilsina, General Secretary of the Consumer Protection Forum, stating that it further restricts public access to information.