Internet service providers (ISP) and the Nepal Electricity Authority (ANE) have been going through a dispute over the rental of light poles for a few months, and it has directly affected the fluidity in the provision of internet services to consumers.
The authority has seized the cable from ISPs in Kathmandu, Biratnagar, Inaruwa, Kakarbhitta, Gauriganj, Pokhara, Dharan, Khotang, Surkhet, Kailali, Butwal, Tikapur, Attariya, Bhairahawa, Doti, Lalitpur, Dhankuta and Duhabi, for failing to pay the pole rentals. The authority has even cut the cords of data centers and ISP operating points.
However, the ISPs have not paid the rent to the NEA. Instead, they have warned the NEA and consumers that internet service may be interrupted at any time in protest. The irresponsible behavior of both parties is affecting the rights of consumers to basic and essential Internet services.
understanding the fight
In accordance with the regulations of the Nepal Telecommunication Authority, the country’s telecommunications regulator, internet services must not be interrupted, and in case of interruption, they must be repaired immediately. But, the ISPs are putting all their anger (caused by the dispute with the NEA) on the clients, warning them to drop the connections.
ISPs charge all customers including government taxes, operating fees, and also a certain percentage of profit. In addition, in the service charge that they impose on the recipients of the internet service, they also add the charges to be paid to the NEA for the use of its electric poles.
Despite charging pole rental to customers, ISPs do not pay pole rental to the NEA. This has forced the NEA to break the internet cables.
However, the NEA, which leases the infrastructure for telecommunications services, does not want to be monitored by the Telecommunications Authority because it wants arbitrary rents in a manner that is not very transparent.
When Internet services started in Nepal in 1994, the NEA gave ISPs permission to use their posts for free. Later, he started collecting rent.
With the increase in the number of internet users along with the service providers, the wires on the poles also increased. So did NEA revenue.
However, it does not contribute much to the NEA’s annual revenue and the money is spent on cable management.
Today, it is not possible for ISPs to provide internet service without using the NEA poles.
Failed efforts to resolve the issue
The recent dispute began after the NEA increased the pole rent in August 2018. Following the dispute, in November 2019, the Ministry of Information and Communication Technologies and the Ministry of Energy, Water Resources and Irrigation they formed a high-level committee to determine the rent. of the poles
The committee reviewed the rate applied by the NEA in August 2020 and set different rents. It was also provided that the amounts would increase by five per cent every five years or from the annual inflation rate determined by the Nepal Rastra Bank, whichever is higher.
The Association of Internet Service Providers of Nepal (ispán) disagreed with the decision because their representatives were not included in the team. Subsequently, ISPAN decided to pay the rent for the period beginning on or after August 21, 2020.
The NEA and the ISPs are still in dispute over the rent payment rate for the two years (August 2018-August 2020) when they had a dispute.
The NEA wants ISPs to pay based on the rate set in 2018, but ISPs want to pay rent based on the latest agreement (2020).
the next round
The dispute reached another level after the NEA began cutting connections on October 2, 2021.
But, a meeting between the Ministry of Information and Communications, the Ministry of Energy, Water Resources and Irrigation and the ISPs decided to pay the disputed time post rent by mutual understanding.
To clear up the dispute, another committee was formed under the leadership of the then Assistant Secretary of the Ministry of Communications, Binod Singh. The committee decided to revise the previous rate before increasing the rent.
Consequently, the NEA called the ISPs to a negotiation. But the ISPs showed no interest. They also insisted that the rates for 2018-2020 be those set in 2018, with which the NEA did not agree.
Since the rent must be collected on the basis of the self-declaration of the ISPs, the authority has not been able to determine how many rent poles still have to be collected.
“After the NEA unfairly increased the rent for the poles by 700 percent, the dispute developed,” says Suvash Khadka, executive director of ISPAN. “We ask customers and activists to speak out against the NEA.”
Activists say the NEA’s action to cut the cord instead of resolving the dispute is wrong.
Activist and consumer rights advocate Bishnu Timilsina says the service cannot be interrupted for things that have already been paid for by customers.
This story was translated from the original nepali version and edited for clarity and length.
