Latest Find Out Why internet expensive in Nepal? The Internet is an urgent need. The government has also put it on the list of essential services, embracing the issue of connecting to the daily internet.
Even though the government has put it on the list of essential commodities, there is still a compulsion to use the internet at a high price.
Service providers have recently been expanding Internet services on their own resources. With the expansion of the internet, the speed and price of the internet have changed a lot. However, this is still a matter beyond the purchasing power of most of Nepal’s population.
This requires the cooperation and facilitation of both the government and the private sector. Which will help make Nepal’s internet cheaper in the future. So here we are examining the five main reasons why the internet is expensive in Nepal.
International bandwidth is one of the most challenging issues for Nepal. Currently, international internet bandwidth is entering Nepal through two Indian companies, Tata and Airtel. Although Nepal Telecom has introduced internet from China, the quantity is negligible. Telecommunications expert Anandaraj Khanal says that Nepal’s internet has become expensive due to the dominance of these two Indian companies.
There is a situation where a service provider has brought bandwidth by signing an agreement with the companies themselves. Some companies bring bandwidth cheaply when they bring more and some companies bring expensive bandwidth when they bring less. In this case, if the same company brings a lot of bandwidth cheaply and other companies take it from the same company in Nepal, it will be a bit cheaper. More importantly, the government itself needs to play a role, Khanal says.
He says, ‘Bringing bandwidth through OPGW by signing an agreement between the governments will be very cheap. International bandwidth could be imported at a concessional rate even if another government were to extend the process of extending its own optical fiber to sea level. ‘
Infrastructure is the backbone of the Internet. The same company is making double investments in everything from expanding infrastructure to providing internet. Therefore, a separate infrastructure company is needed. Who only works to build infrastructure. All the service providers can provide services through the infrastructure of the same company. This will reduce the cost of maintenance and infrastructure of the service provider.
In the case of the internet entering Nepal, there is a good option to use the infrastructure of the Electricity Authority. This issue does not seem to be resolved immediately due to the NEA’s self-imposed increase in poll rent.
Khanal says that if NEA’s infrastructure is used to set concessional rates and projects run by the Rural Telecommunication Development Fund as well as other networks interfere with NEA and create an environment of co-use at concessional rates, double cost and internet cost will be reduced.
Why internet expensive in Nepal? Reasons
Another reason why the internet is so expensive is because of taxes. The government is levying higher taxes on internet services than on tobacco and alcohol. Which is affecting the price of the Internet. There is a provision of 30 percent corporate tax on the internet like alcohol and tobacco industry.
In addition, 13 percent TDS (excluding maintenance fee), 10 percent TDS on bandwidth payment, 4 percent royalty income, and 2 percent income from the Rural Telecommunication Development Fund have to be paid. In addition, 13 percent VAT is also added to it.
The government has to pay high taxes for internet services.
Lack of convenience
Khanal says that government concessions and assistance would be most important to reduce the cost of the internet. The government needs to make policy concessions to service providers.
Instead of providing the available frequency to the service provider, the government is keeping it the same. Khanal is of the opinion that the government should facilitate the expansion of infrastructure by reducing taxes.