The government has drafted an Integrated Telecommunications Policy, 2026, with the aim of making the telecommunications sector a key foundation of Nepal’s digital transformation.
The draft, prepared by the Nepal Telecommunications Authority (NTA), sets a target of providing broadband services with speeds of at least 50 Mbps to 80 percent of the population within five years and 98 percent within 10 years.
The proposed policy seeks to move beyond expanding mobile and internet services by linking telecommunications with education, healthcare, agriculture, tourism, industry, energy, financial services and public administration.
Its broader objective is to use telecommunications technology to make citizens’ daily lives easier, build a digital economy and accelerate socio-economic development.
80% broadband coverage in five years
The draft sets a target of providing broadband telecommunications services with a minimum speed of 50 Mbps to 80 percent of the population within five years and 98 percent within a decade.
Internet and mobile services remain unreliable in many rural, remote and high-altitude areas. Even where services are available, weak networks, frequent disruptions and a lack of high-speed internet remain common.
To address these gaps, the draft prioritises the effective mobilisation of the Rural Telecommunications Development Fund, construction of an information highway and expansion of telecommunications services along highways.
It proposes using the fund to expand broadband infrastructure in rural and remote areas that lack access to high-capacity telecommunications technology.
The government also plans to accelerate construction of a nationwide ‘information highway’ to ensure broadband access for all citizens.
Service providers to face rollout obligations
The draft proposes requiring telecommunications service providers to invest in areas that currently lack services.
When issuing licences or allocating frequencies, the government would impose specific rollout obligations requiring providers to expand services into underserved areas.
It also proposes requiring service providers to invest a certain percentage of their annual revenue in disadvantaged or underserved areas.
The measure is intended to reduce the tendency of operators to concentrate infrastructure investment in commercially profitable urban areas and encourage expansion into rural and remote communities.
Progress against licence and frequency conditions, as well as annual service expansion reports submitted by providers, would be used to monitor compliance.
20% domestic participation proposed for foreign investment
The draft also proposes attracting foreign and multinational investment into the telecommunications sector while requiring domestic participation.
It proposes that telecommunications companies established with foreign investment must have at least 20 percent domestic participation.
If implemented, the provision would prevent foreign companies from operating telecommunications businesses in Nepal under complete foreign ownership.
Broadband costs to be reduced
The draft also links broadband affordability with national income.
It aims to bring the initial broadband service cost down to within 2 percent of per capita gross national income within five years and 1.5 percent within 10 years.
It also proposes reviewing taxes, fees and charges that affect telecommunications service costs.
A separate proposal calls for the development and implementation of guidelines for approving scientifically determined and simplified service tariffs.
The draft also proposes reducing the cost of international bandwidth by improving access to submarine cable systems and organising the purchase and distribution of bandwidth. A study and recommendations on the issue are proposed within one year.
Mobile number portability proposed
The draft identifies limited competition in Nepal’s telecommunications market, particularly in mobile services, as a concern affecting service quality and consumer choice.
It proposes ensuring consumers have greater freedom to choose service providers and strengthening interconnection between operators.
It also proposes introducing mobile number portability, allowing customers to switch operators without changing their existing mobile numbers.
The implementation plan sets a two-year target for introducing interconnection and mobile number portability provisions.
The government expects the measures to create a more level playing field among telecommunications operators.
Four categories of licences proposed
The draft proposes simplifying and restructuring the telecommunications licensing system by dividing licences into four categories.
The first would be an integrated licence for providers offering cellular services and using allocated frequencies.
The second would be a general licence for network and internet services.
The third would be an infrastructure licence covering towers, fibre networks, access networks and shelters.
The fourth would cover value-added services.
Existing licences would be reviewed and amended within one year, while the draft proposes a simpler and more organised system for issuing new licences.
It also proposes adopting technology- and service-neutral policies and issuing licences through open and transparent procedures.
Changes proposed to frequency allocation
The draft describes radio frequency as a limited resource and proposes its maximum and scientific utilisation.
It calls for frequency allocation, limits and base prices to be determined based on international practices.
A frequency roadmap would be prepared based on demand and supply, while allocation procedures would be made more transparent and systematic.
The draft also proposes procedures for testing frequency use, field monitoring and identifying and resolving interference.
The relevant frequency allocation, roadmap and monitoring measures are targeted for implementation within six months.
Shared infrastructure and roadside ducts
The draft seeks to address the duplication of telecommunications infrastructure investment.
Telecommunications companies currently build separate towers, fibre networks and ducts, increasing costs and contributing to repeated road excavation and poorly organised cables.
The policy proposes encouraging infrastructure sharing and the joint use of infrastructure owned by different service providers.
It also proposes classifying telecommunications as a public utility and making the installation of ducts along roads and highways mandatory.
OTT services to face regulatory framework
The draft notes that the expansion of over-the-top (OTT) services delivered over the internet has affected the revenues of traditional telecommunications operators.
It says OTT services have shifted revenue to other sectors and created challenges for infrastructure investment.
The policy proposes creating an environment for cooperation between telecommunications operators and OTT and content providers.
A regulatory framework for OTT services is proposed within one year.
However, the draft does not clearly spell out how OTT regulation would balance consumer interests, freedom of expression and digital content development.
Cybersecurity and data protection
The draft identifies growing cybersecurity risks to telecommunications networks, equipment and customer data.
It proposes developing security standards for telecommunications networks and hardware and software systems.
Service providers would be required to ensure security, privacy, integrity, availability and accountability when collecting, storing and processing customer data.
The policy also proposes strengthening cybersecurity monitoring and response through a Computer Emergency Response Team (CERT) involving regulators, service providers and experts.
A digital KYC directive is also proposed to standardise customer identification systems across telecommunications service providers.
Telecommunications to remain operational during disasters
The draft proposes disaster-resilient infrastructure and alternative networks to ensure telecommunications services remain operational during earthquakes, floods, landslides and other disasters.
Service providers would be required to prepare business continuity plans.
The government also plans to prepare a national emergency telecommunications plan and maintain communication systems in a state of readiness for disaster management and reconstruction.
An ‘Early Warning for All’ system is also proposed to ensure citizens receive timely risk information.
5G, satellite and AI technologies to be promoted
The draft proposes encouraging the testing and commercial use of emerging and alternative technologies, including fibre, 5G, fixed wireless access (FWA), Internet of Things (IoT), satellite and high-altitude platform systems (HAPS).
It also envisages the use of artificial intelligence to improve network management, cybersecurity, customer service and service quality.
The policy proposes collaboration among universities, industries and research institutions to conduct research, training and studies on emerging communication technologies.
Innovation hubs, centres of excellence and training centres would also be established.
An innovation fund is proposed to support digital entrepreneurship, innovation and startups.
Digital literacy and local content
The draft sets a target of increasing digital literacy to 60 percent within five years and 85 percent within 10 years.
It proposes establishing community information centres in rural areas, with implementation targeted within two years.
The policy also seeks to promote the production of digital content in local languages, with the aim of making digital services more relevant to local communities and needs.
Who will implement the policy?
The Ministry of Communication and Information Technology will lead implementation, while the Nepal Telecommunications Authority will serve as the main implementing agency.
The policy proposes cooperation among federal, provincial and local governments, the private sector, educational institutions, research organisations and other stakeholders.
A steering committee chaired by the Minister or Minister of State for Communication and Information Technology would monitor and evaluate implementation.
Three existing policies to be repealed
If adopted, the draft proposes repealing the Telecommunications Policy, 2060, Broadband Policy, 2071, and Information and Communication Technology Policy, 2072.
Activities carried out under those policies would continue to be recognised as part of the new integrated policy.
The draft therefore seeks to bring telecommunications-related policies, strategies and legal arrangements under a single framework.
It also proposes coordinating implementation with the Satellite Policy, National Cybersecurity Policy, radio frequency policies and the National AI Policy.
