Procedural delays by the government have left Internet Service Providers (ISPs) unable to pay their upstream providers for bandwidth, creating a challenging situation for the industry.
On Sunday night, internet services across much of the country were disrupted, bringing the issue of delayed bandwidth payments into focus once again. Even though ISPs have cleared outstanding dues, including royalty fees and contributions to the Rural Telecommunication Development Fund (RTDF), they have not yet received approval for foreign currency payments.
WorldLink cleared its dues, including penalties, on November 16, while Subisu settled its payments nearly a month ago. Despite this, WorldLink owes ₹4 billion, and Subisu owes ₹600 million to Indian upstream providers, which they cannot pay due to the lack of government approval for foreign currency remittance.
Internet Outage: Technical Issues or Payment Disputes?
Sunday’s internet outage has been attributed to technical issues, according to the Nepal Telecommunications Authority (NTA). Spokesperson Santosh Poudel dismissed claims that payment delays were the cause of the disruption. “The issue is purely technical, not financial,” he stated.
However, ISPs remain skeptical. Attempts to contact Indian upstream provider Airtel yielded no definitive answers. Informally, ISP employees learned that optical fiber cuts in Uttar Pradesh and Bihar may have caused the disruption.
Why the Delay in Government Processes?
ISPs that have already settled their outstanding dues are frustrated by the slow pace of foreign currency recommendations. Defending the delay, spokesperson Poudel said, “It took years to clear outstanding dues, but there’s an expectation that recommendations should happen instantly. The required documents must be reviewed, and inspections conducted if necessary, which takes time.”
ISPs Call for Immediate Action
ISPs argue that the government must expedite the foreign currency recommendation process to prevent interruptions in essential services like the internet. “Our ability to pay is blocked, and when services are disrupted, who are we supposed to complain to?” questioned one ISP operator.
To enhance the reliability of internet services, ISPs are urging the government to streamline the recommendation process and ensure timely payments to upstream providers. “We need swift action to resolve this; otherwise, disruptions will continue,” they said.