Kathmandu, Ashoj 21 - Internet service providers (ISPs) in Nepal are also under a question of regulations and consumer rights due to their decision to discontinue internet packages of less than 50 Mbps. Internet Service Providers Association of Nepal (ISPAN) has informed that packages with lower speed will not be sold and renewed from October 5. ISPAN pointed to the increasing global price, inflation, increasing fuel and fiber prices, costly networking devices and shifts in consumer internet consumption as grounds to end lower-cost packages.
Existing customers will be able to continue to use their current packages in the same manner before their expiration date. If a customer needs to renew, however, they'll likely need to upgrade to a package of 50 Mbps or higher, typically a more expensive package than those offered at lower speeds in the past.
The decision has drawn objections from Nepal Telecommunications Authority (NTA). The NTA states that service providers can't simply end or change approved packages without notifying the regulator and seeking its approval, whereas ISPAN says there should be a regulatory review of new tariffs but not necessarily to end or alter an existing package. The NTA states that it had not been issued with any formal applications or prior notification for withdrawal of packages below 50 Mbps.
The regulator has warned that it could investigate and take action if internet companies coordinate to remove cheaper packages or effectively force consumers into more expensive services. It's also a big matter as several lower-speed home internet packages are still offered under the existing approved tariff list of the NTA, ranging from 10 Mbps to 40 Mbps. Consumer organizations have therefore raised the issue of the providers' ability to cease provision of services which are still within their approved tariff without going through the necessary regulatory process.
Student, farmer and small business groups and low-income households who use cheaper internet just to stay connected could be unfairly impacted if the affordable packages are removed, consumer groups say. The prices may go up monthly as customers are shifted from slower plans to the 50 Mbps packages and above.
The dispute therefore goes beyond internet speed. It raises a broader question about whether service providers can collectively discontinue affordable options without regulatory approval and what protection consumers have when an essential digital service becomes more expensive.
Internet access is becoming vital in Nepal where the Government is encouraging digital services, online education, digital payments and e-governance and pushing for the development of affordable internet services. The NTA’s response will now determine whether ISPs can proceed with the withdrawal of low-cost packages in their current form.
Source: The Kathmandu Post
