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For years, internet users in Nepal have paid for broadband packages without a tariff structure directly tied to the speed of their connection. That is set to change.

The Nepal Telecommunications Authority (NTA) has approved a new tariff structure linking internet charges directly to connection speeds, marking the first time such a speed-based tariff system has been formally approved in Nepal.

The move is expected to bring greater clarity to what consumers are paying for while giving internet service providers a formal framework to price packages according to speed.

Under the new structure, internet packages will range from 20 Mbps to 650 Mbps, with monthly charges starting at Rs 750 and going up to Rs 2,700. The approval of a Rs 2,700 monthly tariff for a 650 Mbps connection is particularly notable, as the NTA had previously approved packages only up to 150 Mbps.

Internet service providers, however, had already been offering packages of up to 300 Mbps, saying they had submitted the proposed tariffs to the regulator for approval.

According to NTA spokesperson Min Prasad Aryal, the new rates were approved after reviewing the legal provisions governing telecommunication service charges and telephone ownership fees under Section 42 of the Telecommunications Act, 2053 BS.

The authority has approved tariff proposals submitted by the fixed wired broadband services of WorldLink, Vianet and Subisu between mid-July and mid-August.

The new system effectively brings the regulator’s tariff framework closer to the way broadband services are marketed to consumers, where speed has increasingly become a key selling point.

The respective service providers will inform customers of the new tariffs through their websites, while the NTA will also publish the approved rates on its website.

With the new structure, consumers will have a clearer basis for comparing packages: faster connections will come with higher approved tariffs, while providers will have a formally recognized pricing framework tied to the speed they offer.

By Madhu Jung Pandey