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ISPAN issues arwning of possible internet shutdowns at any time

During a press conference held in Kathmandu on Friday, the ISPAN issued a cautionary notice, stating that internet services could be disrupted at any time.

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KATHMANDU: The Internet Service Providers Associationof Nepal (ISPAN) has warned that the Internet service may stop at any time.

During a press conference held in Kathmandu on Friday, the ISPAN issued a cautionary notice, stating that internet services could be disrupted at any time.

According to Sudhir Parajuli, the chairman of ISPAN, the association has encountered difficulties as the government has imposed a ban on paying for internet bandwidth. This has left ISPAN companies in a precarious situation.

A significant amount, approximately Rs 3 billion, is still owed to the Indian company Airtel for purchasing internet bandwidth.

Parajuli stated that while Airtel has been requesting payment, the government has not provided recommendations for the release of the funds needed for the bandwidth purchase.

Although the funds for the bandwidth purchase were sent two days ago, Parajuli claimed that the money has been stuck in the bank due to the government’s failure to provide recommendations.

Parajuli’s statements suggest that the responsibility for any potential internet shutdowns lies with the government.

He also highlighted that ISPAN has been subjected to fines by the government, including taxes and royalties on internet bandwidth purchases.

The government’s failure to expedite the process of releasing funds for internet bandwidth purchases has left ISPAN considering legal action.

The Ministry of Communication and Information Technology has stopped the currency recommendation for 10 months due to non-payment of outstanding dues under the maintenance title.

However, the internet service providers have been saying that the maintenance does not come under the telecommunication service and they do not have to pay the said amount.

They have claimed that they are paying the amount due to the government regularly.

ISPAN claims that by amending Section 2 (d) of the Telecommunications Act 2053 and Schedule 6 (a) of the Telecommunications Regulations 2054, only by listing the maintenance as a telecommunication service, only royalty and rural telecommunication development fund can be levied on the maintenance fee.

“In a statement released by ISPAN, it has been mentioned that private telecommunications service providers need approval from the Nepal Telecommunications Authority, Ministry of Communications and Information Technology, and the Nepal Rastra Bank to convert foreign currency. However, government-owned telecommunications service providers have the facility to easily convert foreign currency by visiting the bank. The private sector is not provided with such facilitation due to alleged outstanding dues. However, it appears that the government overlooks the outstanding dues of government service providers.”

The renewal dates for licenses of major internet service providers in Nepal are approaching. ISPAN has demanded clarification of the 12-month bandwidth purchase costs and facilitation of royalties and taxes.

According to ISPAN, the license for Mercantile has been renewed for eight months, while Subisu’s renewal is pending for one month.

Similarly, the renewal date for Vianet’s license is three months away, while the largest ISPAN, WorldLink, has only ten days left for license renewal.

ISPAN has also informed that while the government has not resolved their issues, it is ISPAN who has highlighted that the responsibility for potential internet shutdowns lies with the government itself.