Kathmandu: Nepal’s telecom regulator has scrapped a broadband internet expansion program run through local governments after concluding that the initiative had failed to deliver effective results despite spending more than Rs 410 million.
In a public notice issued Monday, the Nepal Telecommunications Authority said it would discontinue broadband expansion projects financed through the Rural Telecommunications Development Fund and implemented via local governments. The projects had originally been launched under a cabinet decision of February 11, 2021.
One key component of the program aimed to upgrade broadband services in eight districts heavily affected by the 2015 Nepal earthquake — Kavrepalanchok, Sindhupalchok, Nuwakot, Rasuwa, Dolakha, Sindhuli, Ramechhap and Okhaldhunga. The plan involved building internet infrastructure and providing free broadband service for two years. Around Rs 175.7 million was spent under this initiative.
According to the regulator, the program had reached a wide range of public institutions. Broadband services were extended to 525 ward offices in 53 local governments, 2,360 schools and 643 community health institutions across the affected districts. Agreements had been signed with 73 of the 76 local governments in those areas, with the project financed through the rural telecom fund.
Another Rs 234.6 million was spent to expand broadband access to community primary schools in 66 districts outside the Kathmandu Valley and the earthquake-hit regions. Through agreements with 362 out of 656 local governments, broadband connectivity was provided to 4,012 community schools in 135 local governments.
However, the regulator said it will no longer continue such projects through local governments using the rural telecom fund. As a result, expansion will stop beyond areas where services have already been installed.
NTA spokesperson Min Prasad Aryal said the decision was taken after finding that the service had limited effectiveness. The program, initially designed as a short-term post-earthquake measure, had been running for nearly seven years.
“We want to ensure the services provided are effective and that users receive quality connectivity,” Aryal said, adding that the authority is evaluating the impact of previous projects while preparing to introduce a new implementation model.
The regulator also clarified that the plan to provide two years of free broadband internet to community primary schools in 66 districts outside the Kathmandu Valley and the eight earthquake-hit districts will not be continued.
Under Nepal’s telecommunications regulations, telecom service providers are required to contribute 4 percent of their annual revenue as royalty and an additional 2 percent to the rural telecommunications development fund, which finances connectivity expansion in underserved areas.
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