Nepali regulator calls for end to fixed broadband price war

Nepali regulator calls for end of fixed broadband price war

Nepal’s regulator has warned the country’s internet service providers to end the “unnecessary” price war in the for high speed fixed broadband services.

Nepalitelecom.com reported that the price war started in June 2021 when CG Net launched a 120Mbps connection at a price that significantly undercut its rivals, prompting them to respond with speed boosts and tariff drops of their own, with 1Gbps speeds made available in January this year.

However, the price war does not appear to have benefited consumers, with customers complaining of unstable connections and speeds significantly lower than those advertised. This has led to the Nepal Telecommunications Authority (NTA) issuing a warning to operators over “arbitrary” prices.

Speaking to representatives of the Internet Service Providers’ Association of Nepal (ISPAN), the NTA described the price was as “unnecessary” and noted that ISPs must have their tariff proposals approved before they can offer new packages.

TeleGeography reports that the NTA has acknowledged the concerns of ISPs, pledging to create a sub-committee that will aim to address short and long-term issues holding back the development of the sector.

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