Nepal Drafts Telecom Policy Targeting 98% Broadband Coverage in 10 Years

Nepal is charting a course for comprehensive digital transformation with its newly drafted Integrated Telecommunications Policy, 2026. The government envisions the telecommunications sector as a cornerstone of this national shift, moving beyond basic connectivity to integrate services with critical areas such as education, healthcare, agriculture, and public administration.

The policy sets ambitious targets for broadband penetration: 80 percent of the population is to have access to speeds of at least 50 Mbps within five years, with a further goal of reaching 98 percent coverage within a decade. This initiative aims to bridge the digital divide, particularly in rural, remote, and high-altitude regions where internet and mobile services are often unreliable, suffer from frequent disruptions, or lack high-speed capabilities.

To achieve these goals, the draft prioritizes the effective use of the Rural Telecommunications Development Fund and the construction of a nationwide 'information highway.' Service providers will face new obligations, requiring them to invest in underserved areas when obtaining licenses or frequencies. This measure is designed to counteract the tendency for infrastructure investment to concentrate in commercially viable urban centers, encouraging a more equitable expansion of services into remote communities.

Furthermore, the policy seeks to attract foreign investment while ensuring domestic involvement, proposing that companies with foreign capital must include at least 20 percent domestic participation. This approach aims to foster growth and innovation within the sector while maintaining a stake for local stakeholders.