NTA fails to deliver under Bhupendra Bhandari’s leadership; A year of missed opportunities

KATHMANDU: The Nepal Telecommunications Authority (NTA), established as the apex regulatory body for the country’s telecommunications sector, finds itself embroiled in criticism under the leadership of its chairperson, Bhupendra Bhandari. Nearly a year into his tenure, Bhandari’s performance has drawn flak for his inability to achieve meaningful progress in developing the telecommunications sector, an area pivotal to Nepal’s economic growth and digital transformation.

A Year of Missed Opportunities

Bhupendra Bhandari assumed office on February 18, 2023, with promises to advance stalled projects and ensure effective regulatory measures. However, expectations for infrastructure development and improved service delivery have been met with disillusionment. Despite having ample resources at its disposal, the NTA has failed to make significant decisions of long-term importance. This lack of action raises concerns about its capacity to navigate the challenges of modernizing Nepal’s telecommunications sector.

The authority collects 6% of annual revenue from service providers—2% for the Rural Telecommunication Development Fund (RTDF) and 4% as royalty fees. These funds are intended for critical infrastructure development, such as building internet backbones at the local level and providing free internet in rural areas. However, the utilization of these funds has been subpar. Instead of creating tangible progress, much of the RTDF money remains locked in fixed deposits, generating interest rather than driving development.

Broader Implications for Nepal’s Telecommunications Sector

The NTA’s failure to deliver effective results under Bhupendra Bhandari’s leadership is more than a leadership issue—it signals systemic challenges within the organization. The authority’s inability to implement projects and utilize funds has stifled the growth of Nepal’s telecommunications sector, which is critical for the country’s integration into the global digital economy.

The stagnation in the telecommunications sector also has broader economic implications. Poor connectivity impacts businesses, reduces competitiveness, and limits opportunities for innovation. Furthermore, rural areas, which stand to benefit the most from improved connectivity, remain underserved, perpetuating inequality.

Nepal’s telecommunications sector stands at a critical juncture, with operators urgently calling for policy reforms to address mounting challenges. The sector, described as a “critical driver of economic growth,” faces a precarious future due to increasing regulatory burdens, unsustainable taxation policies, and exorbitant license renewal fees.

These systemic inefficiencies, coupled with declining revenues, threaten the sector’s ability to attract investment and foster innovation. Adopting minimum monthly fees and rebalancing fiscal policies could provide much-needed relief, but the lack of swift intervention risks derailing the progress of an industry integral to Nepal’s development.

As highlighted by industry leaders, this moment of crisis also presents an opportunity for transformative change. By embracing sustainable policies, improving regulatory frameworks, and addressing inefficiencies, Nepal can turn the tide and ensure the telecom sector remains a cornerstone of its economic growth. The government must act decisively, balancing the interests of investors, operators, and consumers to create a thriving digital ecosystem. The stakes are too high to ignore—failing to act now would not only jeopardize current investments but also stifle the innovation necessary for the nation’s future.

Stagnation in Infrastructure Projects

The NTA’s failure is starkly evident in its inability to execute projects effectively. Despite announcing 18 packages to expand internet access in rural areas, the results have been lackluster. Promised high-speed internet projects have seen little to no progress, leaving underserved communities without access to reliable connectivity.

Internal sources within the NTA confirm that no impactful decisions have been made over the past year, highlighting an alarming stagnation in leadership. Officials admit that progress on essential internet infrastructure projects has come to a grinding halt, further exacerbating Nepal’s digital divide.

Financial Inefficiencies and Budgetary Bottlenecks

The financial management of the RTDF is another area of concern. By the fiscal year 2023/24, the RTDF had accumulated NPR 35 billion in revenue, of which NPR 12 billion remained unspent. In the previous fiscal year, the fund’s balance was NPR 10 billion. While the interest generated from these deposits contributes to income, the core purpose of the fund—to improve telecommunications infrastructure—remains unfulfilled.

Santosh Paudel, an NTA spokes said, “The unspent funds and matured amounts have been placed in fixed deposits to generate interest income.” This strategy underscores the NTA’s failure to deploy available resources effectively, prioritizing short-term financial gains over long-term development.

Lack of Transparency

Transparency, a cornerstone of effective governance, appears to be lacking at the NTA. Monthly progress reports on RTDF-funded infrastructure projects have not been made public for nearly a year. Moreover, updates on projects initiated after February 2023 remain conspicuously absent. This lack of accountability undermines public confidence and raises questions about the authority’s commitment to its responsibilities.

Broadband and Information Superhighway Projects in Limbo

The NTA’s broadband and Information Superhighway projects, which were expected to revolutionize Nepal’s connectivity, have seen limited progress. Agreements worth NPR 5.67 billion were signed for broadband projects, but only NPR 5.43 billion was disbursed by February 2023. Similarly, out of NPR 9.89 billion allocated for the Information Superhighway project, merely NPR 2.09 billion was utilized. The remaining funds remain unused due to slow progress, reflecting inefficiencies in project implementation.

The delays in these projects have not only wasted resources but also hindered Nepal’s ability to achieve its digital aspirations. In a country where connectivity can serve as a catalyst for education, healthcare, and economic growth, the NTA’s shortcomings have far-reaching implications.

Public Frustration and Calls for Reform

Public frustration with the NTA is growing. Stakeholders have called for reforms to address the authority’s inefficiencies and restore its credibility. Experts argue that a comprehensive overhaul is needed to revitalize the organization, including leadership changes, stricter accountability measures, and improved project management practices.

Critics also emphasize the need for greater transparency in fund utilization and project implementation. Publishing detailed progress reports and ensuring regular audits can help rebuild public trust and ensure that resources are used effectively.

A Call for Leadership and Vision

The challenges facing the NTA require decisive leadership and a clear vision for the future. Bhupendra Bhandari’s tenure thus far has failed to inspire confidence, and his inability to address key issues has raised doubts about his capacity to lead the organization. Moving forward, the NTA must prioritize accountability, transparency, and efficiency to regain public trust and fulfill its mandate.

The Nepal Telecommunications Authority stands at a crossroads. Its failure to deliver under Bhupendra Bhandari’s leadership highlights the urgent need for reform and stronger governance. As Nepal aspires to bridge its digital divide and achieve economic growth, the NTA must rise to the occasion and demonstrate its commitment to driving meaningful progress. The stakes are high, and the time for action is now.