KATHMANDU: The Government of Nepal is actively exploring the introduction of a third player in the telecommunications sector to boost competition and enhance service quality. With only two major operators currently dominating the market, the Nepal Telecommunications Authority (NTA) has formed a committee to study the feasibility and potential impact of adding a new service provider.
The committee, led by Amber Sthapit, Director of NTA’s Regulation Division, includes members from various regulatory departments and has been tasked with submitting a report within six weeks. The study will analyze market conditions, assess the need for a new operator, and explore strategies to attract investment in the sector.
The move comes at a time when the telecommunications industry is grappling with declining revenues from voice services and growing dependence on data-driven services. The lack of competition has raised concerns about the duopoly’s impact on pricing, service quality, and innovation. The NTA aims to address these issues by introducing a third operator capable of providing robust and affordable services across the country.
Potential new entrants are being encouraged to leverage advanced technologies such as 5G. To this end, the NTA is considering offering commercial 5G licenses to attract investors. The authority believes that integrating cutting-edge technology will strengthen Nepal’s telecommunications infrastructure and meet the growing demand for high-speed connectivity.
Despite past challenges faced by telecom companies attempting to enter the market, the government remains optimistic. Companies such as WorldLink have expressed interest in expanding into the telecom sector. WorldLink recently announced its readiness to become a telecom operator, citing its experience in providing affordable internet services nationwide.
The government has emphasized the importance of creating a favorable regulatory and economic environment for potential new operators. High licensing fees and operational costs have previously deterred investors, but policymakers are now focusing on addressing these barriers.
With a population exceeding 30 million, experts believe Nepal has sufficient market capacity to accommodate a third telecom operator. However, the success of this initiative will depend on overcoming regulatory challenges and fostering a competitive market environment.
As the committee prepares its report, the government is committed to ensuring that the introduction of a new operator will benefit consumers, drive technological advancements, and strengthen the country’s digital economy.