Government Intent on Adopting 5G Technology: How Ready Are Nepalese Companies?
Image source, EPA
Two leading telecommunications service providers in Nepal have stated that they are ready to adopt 5G technology.
The government telecommunications regulator, the Nepal Telecommunications Authority (NTA), recently unveiled a draft of the “Mobile Broadband Enhancement Plan,” outlining Nepal’s roadmap for 5G, and invited suggestions from stakeholders.
Additionally, last week the Authority issued a directive instructing telecom providers to develop phased plans for expanding 4G services nationwide, improving service quality, and launching 5G services in major cities.
In response, leaders of Nepal Telecom and Ncell have expressed their readiness to adopt the new technology.
However, they emphasize the need for certain infrastructure prerequisites.
Perspectives from Nepal Telecom and Ncell
The government-owned Nepal Telecom has completed initial 5G testing and is now preparing for a full launch.
“We have completed a phase of technical testing. The government has finalized the frequency policy, so services will soon launch in major cities,” said Sangita Pahadi, Managing Director of Nepal Telecom.
5G trials were recently conducted in Kathmandu.
“We plan to commence service within the next fiscal year,” she added.
Private sector telecom operator Ncell, with foreign investment, praised the government’s mobile broadband plan and the call for proposals from operators.
“We are ready to invest 20 to 25 million USD (approximately 3 to 3.8 billion NPR) to expand 5G and gigabit-per-second high-speed internet services,” stated Michael Foley, CEO of Ncell.
“However, the government must ensure uninterrupted service and create a favorable business environment,” he said. “We are committed to Nepal and have the capacity for substantial investment.”
Foley also pointed out that Nepal lags behind both globally and regionally in 5G service expansion.
“Compared to neighboring countries, Nepal is 5 to 8 years behind. The use of 4G networks in Nepal is declining. Millions of customers still use 2G services while neighbors are already launching 6G,” he noted.
Investment in telecommunications networks, data centers, and educational institutions focusing on overall connectivity and AI remains minimal in Nepal.
Image source, Reuters
Launching 5G services demands substantial investment.
According to an expert, just launching 5G in the Kathmandu Valley could cost more than 18 to 20 billion NPR.
Nepal Telecom Managing Director Sangita Pahadi said that, if necessary, they would collaborate with the government to expand the new technology.
“Bringing 5G is the government’s policy. We will invest in it with government support even if we have to,” she noted, but added that the exact nature and amount of investment have not yet been finalized.
However, Ncell from the private sector has not yet committed to investing despite having readiness and capacity, due to concerns about business continuity.
According to telecommunications law, Ncell has foreign investment, and after 25 years, the government can take over the service, which will happen in September 2029.
Therefore, additional investment will only proceed once long-term service continuity is assured. Ncell is currently in discussions with the government on this matter.
What is 5G?
Image source, EPA-EFE/REX/Shutterstock
5G is the fifth generation of mobile technology, providing high-speed data and faster internet access.
It can deliver speeds up to 100 times faster than 4G and LTE.
Download times are significantly reduced, and many devices can connect within a small area, making it ideal for smart cities.
5G is expected to bring revolutionary changes across sectors like healthcare, education, agriculture, and manufacturing.
“In terms of service quality, efficiency, and adoption of new technology, 5G is critical,” said Meen Prasad Aryal, spokesperson and director at the Nepal Telecommunications Authority.
“We have adopted a technology-neutral policy. Whether it is 4G, 5G, or 6G, the focus is on delivering faster and quality services. Therefore, although somewhat delayed, preparations to move to 5G are underway,” he added.
The Authority’s plan aims to roll out 5G services in metropolitan and sub-metropolitan areas by 2027, and nationwide by 2035.
“The Authority is ready to facilitate. The government may consider incentives related to revenue or frequency fees. Investment and technology evaluation will remain the responsibility of service providers,” he explained.
Globally, 5G services began in 2019, while in India, the rollout started in 2022.
Phasing Out of 3G Services
As 5G services expand, Nepal plans to discontinue 3G service replenishment.
“Currently, providers operate 2G, 3G, and 4G services. Once 5G is launched, there will be four network types to manage. 2G will be retained for voice calls and 4G for data services,” states the Authority’s draft plan.
“Less than three percent of customers rely on 3G data services today. Running 3G uses costly spectrum. Phasing it out will reduce expenses and improve network management.”
The plan indicates that the 3G service phaseout will begin by 2026, and 3G mobile imports will be banned.
“Some areas still have phones that only support 3G. To avoid customer inconvenience, Voice Service Termination replacement and phaseout will be implemented,” said Nepal Telecom Managing Director Sangita Pahadi.