Nepal revives debate on third telecom operator as CG, WorldLink, UTL eye entry

Nepal's government is once again exploring the introduction of a third telecommunications operator, signaling a priority for the Ministry of Communications and Information Technology. Minister Bikram Timilsina stated that the country needs more than the current two mobile service providers to foster competition.

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At present we have only two operators. We believe Nepal needs another operator, or even more than one.

A committee has been formed by the Nepal Telecommunications Authority to study the possibility of licensing a new provider, with its recommendations eagerly awaited. This move comes amid concerns that the market has become too concentrated, leaving only Nepal Telecom and Ncell after several other companies ceased operations.

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The Nepal Telecommunications Authority has formed a committee to study the possibility of introducing a third mobile service provider. Its recommendations are awaited, and we intend to move the process forward. This is one of our priorities.

The idea of a third operator has surfaced repeatedly with new administrations, often leading to studies and reports that ultimately lose momentum. Ministry spokesperson Uday Rana Magar emphasized the need for another operator to ensure effective market competition. Past attempts to license companies like Nepal Satellite, UTL, STM Telecom, and Smart Telecom failed due to regulatory and licensing issues.

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another operator is needed to ensure effective competition in the market.

Regulators acknowledge that the current duopoly may impact service quality and consumer prices. While a feasibility study is underway, the authority notes that only two of the six licensed companies since liberalization remain operational, highlighting the narrowing competition.

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only Nepal Telecom and Ncell remain operational today, narrowing competition