Nepal internet providers set 50 Mbps minimum speed baseline

Internet service providers in Nepal have moved to discontinue low-speed, budget-friendly internet packages, establishing 50 Mbps as the new minimum baseline speed for broadband users. This shift follows a directive from the Internet Service Providers’ Association of Nepal (ISPAN) and aligns with guidelines from the Nepal Telecommunications Authority (NTA).

ISPAN stated that low-priced, low-speed packages are no longer sustainable due to rising operating costs. Key drivers for this decision include the increased cost of network infrastructure, rising prices for optical fiber, and higher costs for chipsets used in electronic devices and network equipment. The association also cited global inflation and the rapid advancement of artificial intelligence technology as factors increasing operational expenses.

Under the new framework, providers can no longer market tiers below 50 Mbps for new customers or plan renewals. However, existing customers with sub-50 Mbps plans are protected and can continue their current packages until they expire. The move aims to standardize service quality, curb unhealthy price competition, and ensure reliable fiber internet capable of meeting modern digital demands.