Directive to Nepal Telecom and Telecommunications Authority on 4G, Fiber Expansion, and RTDF Fund Utilization

30 Shrawan, Kathmandu.

Minister of Information and Communication, Dr. Bikram Timilsina, has instructed relevant bodies to prioritize expanding access to telecommunication services along with improving their quality.

During discussions today at the Ministry of Communication with the Nepal Telecommunications Authority and Nepal Telecom, he mentioned that complaints about weak telephone and internet services are continuously coming from citizens, and stated that both regulators and service providers must work seriously and achieve results in service expansion and quality improvement.

In that discussion, Minister of Communication Dr. Timilsina emphasized that both the regulatory body and service providers must effectively fulfill their responsibilities, and instructed Nepal Telecom to improve services accordingly, given the high expectations citizens have of it.

He mentioned that the government has advanced the current fiscal year as the ‘Year of Transformation’ for the telecommunications sector and stated that the results of the work should now be visible.

Minister of Communication Dr. Timilsina stated that on one hand, citizens in remote and even some urban areas have not been able to get good telephone and internet facilities, but on the other hand, the funds from the Rural Telecommunications Development Fund (RTDF), which have been collected for rural telecommunications development, have not been effectively spent.

Mentioning that funds collected from citizens should be spent on expanding services for citizens, he instructed for the effective utilization of RTDF for the expansion of telecommunication infrastructure in remote and unserved areas.

“The RTDF money is the citizens’ money. Citizens should benefit from it. The regulator must ensure its effective implementation, and service providers must provide good service,” he said.

Minister of Communication Dr. Timilsina stated that while service providers can expand infrastructure with their own investment in commercially and professionally beneficial areas, the role of the state is necessary in remote areas where economic returns are low.

He stated that even if immediate commercial profit is not visible when constructing a mobile tower in any location, connecting the citizens there with communication services is a priority responsibility of the state.

He stated that especially when expanding services in remote areas, rather than just looking at profit and returns, the priority should be given to providing citizens with access to basic telecommunication services.

Similarly, Minister of Communication Dr. Timilsina instructed Nepal Telecom to move forward by creating a clear business plan for service expansion and quality improvement, and to accelerate projects that are currently not operational and need expansion.

He also instructed to accelerate the work of optical fiber expansion. He instructed the relevant bodies to immediately conclude the stalled projects related to tower construction and optical fiber expansion that have not been able to move forward for a long time, and to decide on how to advance those projects with a detailed action plan within one week.

Stating that there should be no delay in work due to a lack of coordination among various government bodies during the expansion of telecommunication infrastructure, he instructed to coordinate as necessary with relevant bodies including the Department of Roads and the Nepal Electricity Authority, and to work in a way that shows immediate results.

In the discussion, Arjun Ghimire, Chairman of the Nepal Telecommunications Authority, informed that even though the authority has been working for a long time to expand services using RTDF funds, some projects have still not been completed.

According to him, projects advanced in Koshi, Bagmati, and Madhesh Provinces to expand optical fiber by mobilizing RTDF funds have not been completed on schedule. He stated that due to the non-completion of these projects, related payments have also not been made.

Projects for telecommunication service expansion through RTDF have also been advanced in Sudurpashchim and Lumbini Provinces. Chairman Ghimire stated that the authority will do the necessary coordination to mobilize RTDF funds in remote and challenging areas for service expansion.

Chairman Ghimire admitted that even though there are necessary financial resources, technology, and manpower for telecommunication service expansion, citizens’ complaints have not been addressed as expected.

He stated that even though service providers are expanding infrastructure with their own investment in commercially and professionally beneficial areas, state investment is necessary in remote areas where economic returns are low.

Sangita Pahadi, Managing Director of Nepal Telecom, stated that telecommunication service expansion is challenging in remote areas where investment returns are low. She said that additional frequency, bandwidth, and infrastructure are needed for expanding telephone and internet services in such areas.

Managing Director Pahadi proposed that RTDF funds could be utilized for expenses in remote areas where operating services by purchasing satellite bandwidth leads to high costs and very low economic returns.

Mentioning that Nepal Telecom can currently only operate 2G services in some remote locations, she stated that additional investment is needed to expand 4G services in such areas.

She informed that compared to 2G, expanding 4G services significantly increases the cost of bandwidth, thus requiring additional resources to provide high-speed mobile internet service in remote areas.

Nepal Telecom announced that it has set a target to expand approximately one thousand kilometers of optical fiber in the current fiscal year. However, the telecom stated that it plans to make further progress and not limit itself only to the work according to the annual target.

The telecom has also requested that necessary facilities for optical fiber expansion be provided through RTDF funds.

A discussion has also taken place regarding the management of unorganized wires/cables expanded for telecommunication and internet services in urban areas.

The meeting concluded that further coordination will be made among relevant bodies to move forward on removing unorganized wires/cables on roads and public structures, organizing them, and undergrounding them where possible.

For more: Communications Minister Directs Priority on Telecom Expansion