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Nepal’s proposed Integrated Telecommunications Policy, 2083 could significantly reshape the country’s telecommunications market by changing the licensing framework, introducing a clearer legal basis for lawful interception and tightening the planning and management of scarce radio-frequency resources.

The draft policy, published by the Nepal Telecommunications Authority (NTA) for public feedback, proposes moving away from the existing fragmented licensing structure toward four broad categories of telecommunications licences. At the same time, it calls for a legal framework governing the use and procedure of lawful interception, an issue that has become increasingly important for telecom operators amid growing demands from law-enforcement agencies for access to communications.

From an operator’s perspective, however, the most consequential aspect of the proposed policy may not be lawful interception alone. The proposed licence restructuring, spectrum roadmap, infrastructure requirements, disaster-resilience obligations and broadband targets could collectively change the regulatory and investment environment for telecom companies.

Four-tier licensing model proposed

The draft proposes classifying telecommunications licences into four principal categories within one year.

Under the proposed structure, an integrated licence would cover operators using cellular spectrum, while a general licence would cover network and internet services. A separate infrastructure licence would be introduced for infrastructure such as towers and fibre networks, while another category would cover value-added and other telecommunications services.

The draft also proposes converting existing licences into the new framework within one year of implementation.

For operators, the proposed restructuring could potentially reduce regulatory fragmentation and make licensing more predictable. A clearer distinction between network operations, infrastructure ownership and value-added services could also create opportunities for infrastructure-sharing and specialised business models.

However, operators are likely to seek greater clarity on how existing licence rights, spectrum holdings, investment obligations and renewal conditions would be treated during the transition.

The government’s stated objective is to make licensing simpler and more transparent, but the implementation framework will determine whether the new system actually reduces regulatory uncertainty for existing operators.

Lawful interception gets a proposed legal framework

One of the most sensitive provisions in the draft relates to lawful interception.

The proposed policy calls for legal provisions to clearly define the use of lawful interception and the procedures surrounding it. The Ministry of Communication and Information Technology and NTA have been assigned responsibility for developing the necessary legal arrangements within one year.

The proposal comes at a time when law-enforcement authorities have been seeking greater capability to intercept telecommunications communications for criminal investigations.

For telecom operators, the issue is particularly significant because interception systems involve not only legal authority but also technical architecture, data protection, security controls and operational responsibility.

A clearly defined legal framework could provide operators with greater certainty about when and under what authority they are required to facilitate interception.

At the same time, operators will likely need clarity on issues such as judicial or statutory authorization, scope of interception, data retention, access controls, confidentiality, technical standards, liability and cost-sharing before the system can be implemented effectively.

From an industry perspective, the key question will therefore be whether the proposed framework establishes a transparent process that protects both national security requirements and customer privacy.

Spectrum management could become more market-oriented

The draft also proposes a more systematic approach to radio-frequency management.

It describes spectrum as a limited national resource and calls for spectrum allocation, limits and base pricing to be determined with reference to international practices.

The policy further proposes preparing a six-month spectrum roadmap based on demand and supply.

For mobile operators, spectrum availability directly affects network capacity, service quality and the economics of deploying new technologies. A predictable spectrum roadmap could therefore be more valuable to operators than ad-hoc allocation decisions.

A demand-based roadmap could allow operators to plan investments in advance, particularly for expanding high-capacity mobile networks and deploying newer technologies.

However, the eventual spectrum pricing model will remain a critical concern. Excessively high spectrum costs could increase operators’ capital requirements and ultimately affect the economics of network expansion and consumer pricing.

Infrastructure sharing and network resilience gain importance

The proposed policy places significant emphasis on telecommunications infrastructure.

It calls for alternative structures and resilient infrastructure to prevent communication networks from being disrupted during disasters. Operators would also be required to prepare Business Continuity Plans to ensure service continuity during emergencies.

A national emergency telecommunications plan is proposed to be prepared within six months, covering disaster management and restoration.

For operators, this could translate into additional requirements for network redundancy, backup power, alternative connectivity routes, emergency restoration capacity and disaster recovery systems.

Such requirements could increase operational costs, particularly in remote and geographically difficult areas. At the same time, resilient infrastructure could reduce prolonged outages and strengthen the overall reliability of Nepal’s telecommunications network.

The draft also proposes an “Early Warning for All” system to ensure that citizens receive timely information about disaster risks.

50 Mbps broadband target creates pressure for investment

The government has set an ambitious broadband expansion target under the draft policy.

It aims to make 50 Mbps broadband service available to 80% of the population within five years and 98% within 10 years.

The policy proposes using the Rural Telecommunications Development Fund more effectively to expand broadband infrastructure in rural and remote areas where high-capacity telecommunications infrastructure remains limited.

It also calls for accelerating the development of domestic telecommunications highways within three years.

For operators, the broadband target presents both an opportunity and an investment challenge.

Reaching 98% population coverage with high-speed broadband will require substantial investment in fibre, backhaul, access networks, towers, power systems and other supporting infrastructure.

The proposed use of the Rural Telecommunications Development Fund could help reduce the commercial burden of serving low-density areas, but operators will need clear rules on fund allocation, project selection and implementation responsibilities.

Digital literacy becomes part of telecom policy

The draft goes beyond network infrastructure and sets targets for digital literacy.

It proposes increasing digital literacy to 60% of the population within five years and 85% within 10 years.

The government, regulator and private sector are expected to jointly implement programmes involving digital literacy, skills development and telecommunications security.

For operators, this could expand the market for digital services by increasing users’ ability to access online platforms, financial services, e-government services and other digital products.

However, achieving the target will require coordination beyond telecommunications companies, particularly in education, affordability, digital skills and access to devices.

From the operators’ perspective, the proposed policy represents a shift from simply expanding connectivity toward creating a more structured telecommunications ecosystem.

The four-category licensing system could simplify regulatory arrangements and allow greater specialisation. The spectrum roadmap could improve investment predictability. The lawful interception framework could provide clearer legal boundaries for operators responding to government requests. Meanwhile, resilience and broadband obligations could increase infrastructure investment requirements.

The biggest issue will be implementation.

Operators are likely to focus their feedback on how existing licences will transition into the proposed categories, how spectrum will be priced and allocated, who will bear the cost of mandatory technical upgrades, and how interception obligations will be reconciled with customer privacy and data-security requirements.

The draft is therefore not merely a policy document on expanding telecom access. If implemented substantially in its proposed form, it could redefine the relationship among telecom operators, infrastructure providers, regulators and law-enforcement agencies.

The consultation process will be particularly important because the final policy could determine the regulatory and investment framework under which Nepal’s telecommunications industry operates for years to come.