Kathmandu — Newly appointed Minister for Communication and Information Technology, Jagdish Kharel, has unveiled a major plan immediately after assuming office. He announced that free Wi-Fi will be made available in 10 major cities, including Kathmandu Valley. According to the minister, the service will begin within two months in the Valley and within five months in the other cities.
However, this declaration has raised concerns among telecom companies, which argue that the scheme could significantly affect their business. As mobile data sales remain their primary source of income, the expansion of free Wi-Fi is expected to directly challenge their revenue streams.
Telecom Operators Face Declining Profits and Investment Challenges
Large operators such as Nepal Telecom and Ncell pay billions of rupees in license renewal fees to run their services. Despite this, their profits have been shrinking steadily in recent years. Nepal Telecom, for instance, earned as much as Rs. 8 billion in profit in fiscal year 2078/79, but by 2081/82, profits had dropped to just Rs. 2.66 billion.
Telecom companies argue that the expansion of free Wi-Fi will not only reduce revenue but also weaken their ability to invest in future technologies such as 5G. While most South Asian countries have already introduced or begun testing 5G, Nepal remains stuck at the initial stage.
ISPs, Hotspots, and Infrastructure Concerns
In the past, internet service providers (ISPs) in Nepal had already operated thousands of free Wi-Fi hotspots. WorldLink alone installed more than 16,000 such points. Telecom companies, however, have long complained that these services severely undercut the sales of mobile data packages.
Former telecom officials point out that successful implementation of free Wi-Fi requires significant investment in infrastructure. From purchasing international bandwidth to building physical infrastructure, costs remain high, and clarity is needed on who will bear these responsibilities.
Policy and Regulatory Uncertainty
Last year, the Nepal Telecommunications Authority (NTA) issued a directive barring ISPs from offering free Wi-Fi in public spaces. With the government’s new announcement, that policy will likely need revision.
An NTA spokesperson said the ministry has yet to issue detailed guidelines on how the scheme will be rolled out, making it too early to reach firm conclusions.
Rural Priorities and International Comparisons
Experts argue that instead of focusing on free Wi-Fi in urban centers, priority should be given to expanding telecom access in rural areas where basic services are still lacking. Doing so, they say, would not only bridge the digital divide but also ensure more balanced information access across the country.
The concept of free public Wi-Fi is not new globally. Cities such as Mexico City, Taipei, and Osaka already operate thousands of hotspots offering free internet access. In Nepal, however, the success of such a plan will depend on clear policies, sustainable infrastructure, and balancing the concerns of telecom operators.
