Nepal Telecom Draws Customers With Rs4,999 Fibre Plan as Internet Price Dispute Deepens

A cheaper connection draws a rush of customers

Nepal Telecom installed 6,000 new fibre connections between mid September and mid October, twice its monthly average in the preceding two months, as customers sought alternatives to rising private internet bills. Its main attraction was a Dashain and Tihar offer of 30 Mbps internet for Rs4,999 a year, with installation charges waived.

Prakshet Thapa Chhetri, the state owned company's assistant spokesperson, said requests for connections had tripled, with particularly strong interest in densely populated areas, including Kathmandu. Completed installations rose from an average of 3,000 a month to 6,000. Requests and completed connections measure different stages of the rush to subscribe.

The shift comes as private internet service providers withdraw cheaper packages offering speeds below 50 Mbps and customers complain about higher bills and limited choices. Students and households with lower incomes face a particular squeeze when their affordable plan disappears and the replacement costs more, even if it promises faster internet.

Nepal Telecom's offer has also brought complaints about telephone queues and supplied routers. Meanwhile, the Nepal Telecommunications Authority (NTA) has penalised providers over unauthorised packages and charges, while a court decision on telecommunications taxes has added financial pressure on the industry.

The dispute therefore reaches beyond which company has the lowest advertised price. For customers, the practical questions are how much they must pay, whether an affordable package is actually available, what equipment comes with it and how quickly someone responds when they need help.

What the price changes mean for household budgets

Anup Thakuri, a WorldLink customer, said his monthly bill for a 50 Mbps Special BTL package rose from Rs1,017 in September to Rs1,350 in October. That is an increase of Rs333, or about 32.7 percent.

Thakuri described the change in a Facebook post:

How has the price of WorldLink Wi-Fi gone up like this? I used to pay Rs1,017 every month, but now it has suddenly jumped to Rs1,350," he wrote. "Is it just me, or has everyone's bill gone up?

Nepal Telecom's Rs4,999 annual offer works out to about Rs417 a month, although customers buy a year of service. Its advertised speed is 30 Mbps, compared with the 50 Mbps on Thakuri's package. Mbps measures how quickly data can travel through a connection; more capacity helps when several people use demanding services at once.

WiFi Nepal previously advertised an annual 80 Mbps package at Rs8,300. Its annual 50 Mbps price subsequently reached Rs14,480 after the promotional package was removed. The newer package costs Rs6,180 more, about 74 percent, while advertising a lower speed.

Major private providers also listed annual 200 Mbps packages at Rs16,830 including value added tax (VAT), or Rs4,800 for three months. Four purchases at that quarterly price would cost Rs19,200, making the annual option Rs2,370 cheaper. A household unable to pay for a year at once faces a higher total at those listed rates.

Why providers point to a tax ruling

The Supreme Court dismissed internet providers' challenges to tax assessments on Ashoj 6 in the Nepali calendar. The ruling concerned the telecommunications service charge (TSC), a levy of 10 percent on internet bills.

Providers had treated as much as half of a fixed broadband bill as maintenance charges and excluded that portion from TSC. They based the practice on a cabinet decision in 2075 in the Nepali calendar and subsequent directions from government bodies.

The court found no legal basis for that maintenance exemption, leaving the full bill subject to TSC. Providers also faced unpaid charges covering the preceding five years, with annual penalties reported at up to 60 percent. The resulting liabilities were described as running into billions of rupees.

Sudhir Parajuli, president of the Internet Service Providers' Association of Nepal (ISPAN), said companies were being required to pay the government, including penalties, for charges they had not previously collected from customers. He said providers consequently had to recover more money from subscribers.

Private providers have also cited inflation and operating expenses when withdrawing cheaper packages. Their financial argument sits alongside a separate regulatory obligation: companies must obtain approval for tariffs and publish the approved prices. Customers need both an explanation of a higher bill and access to the authorised rate.

The regulator orders refunds and package withdrawals

The NTA said on October 10, 2026, that it had received no proposals to increase internet tariffs and had approved no increases. It warned providers against collecting more than authorised charges or operating packages without permission.

On October 13, the authority fined 14 internet providers Rs50,000 each under Section 47(1) of the Telecommunications Act, 1997. WorldLink Communications, Vianet, Classic Tech, Subisu, Dish Media Network and WiFi Nepal were among those penalised.

NTA spokesperson Min Prasad Aryal said violations included overcharging, selling unapproved packages, failing to deliver approved services and failing to notify customers about package changes on time. Tariff proposals and their intended starting dates must be submitted for approval at least three months in advance.

The authority ordered providers to stop unapproved packages and tariffs, report their corrective action and compensate affected customers who submit claims. Its wider enforcement campaign was described as covering 19 companies, while Aryal gave a total of 20; a further action involving Nepal Telecom and five other providers was also described, with fines of Rs50,000 each.

Aryal said inspections followed complaints that providers obtained approval for inexpensive packages at 20 or 50 Mbps, then offered customers only costlier packages at 200 to 600 Mbps. The authority's monitoring and tariff divisions were continuing to examine whether providers had corrected their practices.

Nepal Telecom disputes the link to its offer

Nepal Telecom challenged claims connecting the regulator's enforcement notice to its Rs4,999 package. The company said the NTA notice dated 2083/06/30 in the Nepali calendar had been incorrectly linked to the 30 Mbps plan.

The company said it had informed the regulator when introducing the package and had presented it as an offer aimed at students. It described the package as an existing offer and said it was communicating with the authority to obtain approval for the internet packages it operates.

The package's precise approval status remains unresolved in the public explanations: Nepal Telecom says it communicated the offer and operates within the rules, while also describing ongoing discussions to obtain approvals.

Political promotion helped bring the offer to a much larger audience. Prime Minister Balendra Shah shared a poster for it on Facebook on October 9, according to the company.

Thapa Chhetri, speaking about the prime minister's promotion, said:

Having the prime minister, who has a large social media following and considerable popularity, promote the offer has been a big help with marketing," Thapa said. "It has made more consumers aware of the affordable package and directly contributed to the rise in demand for NT Fibre.

How the dispute developed

The price complaints, promotional campaign and enforcement measures unfolded across several dates. The sequence helps explain why customers were encountering a heavily promoted alternative while regulators were challenging internet companies' sales practices.

• Ashoj 6, Nepali calendar: The Supreme Court dismissed providers' challenges to tax assessments involving TSC.
• October 9: Prime Minister Balendra Shah shared Nepal Telecom's Rs4,999 offer on Facebook.
• October 10, 2026: The NTA said it had approved no internet tariff increases and warned against unauthorised charges.
• October 13, 2026: The NTA fined 14 private providers Rs50,000 each and ordered corrective action.
• Mid September to mid October: Nepal Telecom completed 6,000 new fibre connections, compared with its preceding monthly average of 3,000.
• October 17: Chitwan customer Sanjay Mahato said he bought Nepal Telecom's annual fibre package after private providers raised prices.

Customers continued to challenge the government's response in public Facebook groups. Shankar Karki, an administrator of the Vianet Internet Users Group, criticised higher prices and fewer competing deals while the government promoted Nepal Telecom's package. His claims of increases ranging from 50 to 100 percent reflected complaints about particular packages.

What the official tariff says about the bill

Nepal Telecom's official fibre tariff lists several standard packages with different commitments and extra charges. FTTH means fibre to the home, a connection delivered through optical fibre rather than an older telephone cable.

The listed annual 50 Mbps internet and telephone package costs Rs8,499. A Rs500 installation charge and Rs665 ownership tax are excluded from that price. Together, those amounts bring the bill to Rs9,664 where both apply. The page says its listed charges include tax, but separately identifies these additional connection costs.

A package covering two years of 50 Mbps service costs Rs14,999. Its terms include no installation charge, free customer premises equipment (CPE), meaning the router or connection device, and 100 metres of fibre cable. A new telephone voice connection attracts the Rs665 ownership tax.

The tariff also lists annual 50 Mbps bundles with telephone service and basic NTTV at Rs10,499, or premium NTTV at Rs12,000. Installation and ownership charges are additional. These bundles include equipment under their listed terms, so their totals reflect more than internet speed.

Nepal Telecom's listed annual 200 Mbps internet and telephone package costs Rs16,499, compared with Rs16,830 including VAT for the common private package. The advertised gap is Rs331. At that speed, connection fees and bundle contents become especially relevant to the final comparison.

Equipment and support test the cheaper service

Arjun Tamang, from Nuwakot, said he struggled to arrange a connection during Dashain. An automated response placed him 161st in the customer service queue and gave an estimated wait of 16 minutes.

Nepal Telecom said calls to its 198 hotline had risen sharply. It introduced a dedicated hotline and an online portal to manage enquiries and installation requests. Its official tariff directs customers to 198 for both new fibre connections and maintenance.

Sanjay Mahato, from Tandi in Chitwan, raised a different concern after buying the annual package on October 17. He alleged that subscribers to the 30 Mbps offer received old routers supporting a single frequency band that other customers had returned, while 50 Mbps subscribers received new routers supporting two bands.

A router supporting two bands gives devices another wireless frequency to use, which can help in crowded wireless environments. A home's wireless performance also depends on distance, walls and interference. The fibre connection's advertised speed is only one part of the experience inside a house.

Nepal Telecom's equipment schedule lists routers supporting a single band at Rs2,825 and those supporting two bands at Rs3,710. It also specifies a free FTTH router for a new connection with an annual internet package, without identifying the model supplied under the Rs4,999 offer.

Thapa Chhetri said the company was maintaining standards and had enough network capacity for increased demand. He said additional connections would not affect speeds or service quality. His response addressed service capacity and standards generally rather than Mahato's specific allegation about returned equipment.

How customers can challenge an unexpected charge

The NTA says providers must publish their approved tariffs. Aryal said the regulator had approved packages offering speeds up to 50 Mbps at approximately Rs800 to Rs1,000 a month including VAT, aimed at people with lower incomes. Customers have complained that such packages are difficult to obtain from major providers.

A customer disputing a bill should first complain to the provider and request correction or repayment. If the provider fails to resolve the complaint, the customer can approach the NTA through its online complaint portal, official email or a written application.

Bills, payment records, package advertisements and messages about price changes can help explain the claim. The authority's directions allow refunds or an equivalent period of additional service for excess charges, while its October enforcement action also requires compensation for claimed losses arising from violations.

Customers considering a switch face another practical task: checking the full amount payable, contract length, router supplied and usage limits. Nepal Telecom's standard individual 50 Mbps tariff includes a daily fair usage threshold of 50 GB, after which the listed speed falls to 5 Mbps. The tariff excerpt does not specify the corresponding threshold for the promotional 30 Mbps plan.

For households balancing cost against reliability, an affordable connection must also come with clear terms and reachable support. Nepal Telecom's rising installations show strong demand for a cheaper choice. The complaints about queues, equipment and private bills show where companies and the regulator still face pressure to act.

Key Points

• Nepal Telecom's Rs4,999 annual 30 Mbps offer attracted customers as private providers withdrew cheaper plans and raised bills.
• Completed fibre installations doubled to 6,000 over a month, while the company said connection requests tripled.
• A Supreme Court ruling left the full internet bill subject to the 10 percent telecommunications service charge, adding to providers' tax liabilities.
• The NTA fined 14 private providers Rs50,000 each on October 13, 2026, and ordered the withdrawal of unapproved packages and compensation for affected customers.
• Nepal Telecom disputed claims linking regulatory penalties to its promotional package and said it was communicating with the NTA over approvals.
• Customers should check connection charges, equipment, usage limits and published tariffs, and take unresolved billing complaints to the regulator.