The Internet Service Provider Association of Nepal announced on Sunday that low-cost and slow internet packages will be discontinued starting October 5. The association has instructed all internet service providers to stop offering these budget options.
The decision is due to rising operational costs and global inflation, making it difficult for providers to maintain affordable, slow connections.
Reasons for the Discontinuation of Budget Broadband in Nepal:
- High Hardware Costs: The global demand for AI-powered devices has significantly increased, leading to higher chipset and hardware prices.
- Increased Maintenance and Supply Chain Costs: The ongoing Russia-Ukraine war has caused fuel prices to spike, forcing ISPs to spend more on routine maintenance and supplies for their towers.
- Rising Optical Fiber Prices and Inflation: Persistent inflation in the global market has driven up the cost of optical fiber and raw materials, making it challenging for ISPs to cover these expenses while sustaining operations. Consequently, they must offer more expensive packages.
The Internet Service Provider Association of Nepal expressed concern and apologized to low-budget consumers for the inconvenience. They emphasized that this change is essential for advancing the country’s “Digital Nepal” initiative.
What Consumers Should Do:
The association urged internet service providers to display their tariffs approved by the Nepal Telecommunications Authority on their websites. They also recommended that customers request bills when paying for subscriptions. Customers on low-end packages nearing expiration will be transitioned to standard packages.