On 2nd May 2024, broadband internet services experienced disruptions across various regions of Nepal due to Indian vendors, the primary source of bandwidth for most Nepali private operators, ceasing their services owing to payment defaults. Notices issued by private internet service providers in Nepal indicated either service disruptions or slowed connections, while the state-run Nepal Telecom continued to provide internet services.
Although two private mobile services in Nepal remained operational, their internet speeds were adversely affected. The inability of private ISPs in Nepal to pay Indian vendors for several months stems from the government’s failure to provide them with foreign currency from banks to settle payments. The government’s stance on withholding foreign currency disbursements until private companies clear taxes on specific services they offer has exacerbated the situation.
The private companies contend that they are exempt from such taxes. Wlink Communications, Nepal’s largest ISP, placed blame on the government for the disruption, stating in a notice that their upstream provider had disconnected internal links due to nonpayment. ISPs in Nepal struggle to remit payments due to the lack of approval from the Nepal government to access foreign exchange.
