Kathmandu: Nepal’s fifth-largest internet service provider, Classic Tech, is facing a heightened risk of internet service disruption after telecom operator Ncell issued a formal warning over unpaid bandwidth dues exceeding Rs 300 million.
Ncell has given Classic Tech a 30-day ultimatum to clear outstanding payments, failing which the company has warned it will terminate bandwidth services in accordance with their bilateral agreement. The warning was communicated through an official letter sent about a week ago, an Ncell representative confirmed.
Classic Tech entered into a bandwidth purchase agreement with Ncell in Chaitra 2080. However, despite continued use of the bandwidth, the company has not made payments as stipulated in the contract. “Classic Tech has yet to clear more than Rs 300 million in dues for bandwidth usage,” the Ncell official said.
Classic Tech operates both as an internet service provider (ISP) and a network service provider. Earlier, the Nepal Telecommunications Authority (NTA) had suspended Classic Tech’s permission to import international bandwidth after it failed to pay royalties and dues to the Rural Telecommunications Development Fund. Following the suspension, Classic Tech signed an agreement with Ncell to procure bandwidth domestically to continue providing internet services to its customers.
Despite this arrangement, Ncell says payments have not been made despite repeated verbal reminders, forcing the company to issue a written notice with a clear deadline. “We supported Classic Tech at a difficult time to prevent service disruption in the market. However, we are now facing difficulties ourselves due to non-payment. If the dues are not cleared within the deadline, we will be compelled to stop the service,” the Ncell official stated.
Attempts to contact Classic Tech owner Pramesh Kharel for comment were unsuccessful. According to the NTA’s Management Information System (MIS) report up to mid-Mangsir, Classic Tech Private Limited ranks among the top five ISPs in Nepal. The company’s internet services reach 268,177 locations nationwide. Based on the regulator’s estimate that one connection serves an average of 4.37 users, Classic Tech has approximately 1.17 million internet users, accounting for about 7.94 percent of Nepal’s total ISP market.
Industry observers warn that any disruption to Classic Tech’s bandwidth supply could significantly affect internet users across the country, particularly in areas where the company has a strong presence.
