ISPs are silently increasing the price of their low Mbps internet plans!

It looks like the recent price war between Internet Service Providers (ISPs) is finally coming to an end. The competition that started with CG Net’s aggressive entry into the market is practically over after ISPs agreed against the unhealthy competition by undercutting themselves. ISPs are now increasing the price of low Mbps internet plans or abandoning them altogether.

ISP Price War in Nepal 

How the ISP Price War really started

CG Net initiated its service in the Kathmandu Valley with residential 120Mbps home plans costing as low as Rs. 999 monthly in 2021. Back then, the said speed and the price it came with were both unheard of in Nepal. This compelled other mainstream ISPs like Worldlink and Vianet to level up. Many introduced new plans and even updated the existing ones to higher speed for free. As a result, high-speed internet plans over 100Mbps became the new norm, with some ISP offerings even going over 1Gbps.

While these high-speed plans offered better value than the plans they were replacing, their popularity took a hit as most subscribers realized they didn’t need all the speed. There was a gap in the market for low-priced home internet plans with moderate speeds. CG tried to capitalize it with its 50Mbps “Super Sasto Packages” for Rs. 649/month. However, then came Wi-Fi Nepal with its 30Mbps package at just Rs. 333/month, which was unheard of before.

Is ISP Price War finally coming to an end?

But it looks like the ISP price war in Nepal has finally come to an end. A recent rumour suggested that Internet Service Providers (ISPs) in Nepal are gradually increasing the price of their packages to avoid competition within themselves, and we are seeing the results.

Wi-Fi Nepal burst into the ISP scene with super affordable internet packs, which has increased the price by nearly 100%. Likewise, CG Net has completely abandoned the 50Mbps package. You won’t also find the low-cost Purple and Mini Packs on Vianet’s official site either. And in the latest move, DishHome has also raised the rate of its internet plans.

Wi-Fi Nepal Internet Price: Before Vs After

DishHome Internet Price: Before vs. After

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This is what NTA has to say about the increased internet price war

As all of this unfolded, Nepal Telecommunication Authority (NTA) released a notice urging ISPs not to increase the price and to abide by the existing law. It also denied any involvement in the rumoured agreement between ISPs to end the price war. The regulatory authority has said that no directions about internet pricing increases have been issued. Instead, service providers can only change their prices with the approval of the regulatory authority.

The authority has instructed ISPs not to raise their internet price. They must first approve tariffs according to Section 42 of the Telecommunications Act of 2053 and the permit conditions.

But this is where things get confusing. Turns on at the height of the price war when ISPs were introducing low-cost options, and none of the plans were approved by NTA. NTA had even released a notice prior to putting an end to unapproved internet packages.

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