Internet Service Provider

An internet service provider (ISP) is a company that provides access to the internet. ISPs can provide this access
through multiple means, including dial-up, DSL, cable, wireless and fiber-optic connections.
A variety of companies serve as ISPs, including cable providers, mobile carriers, and telephone companies. In
some cases, a single company may offer multiple types of service (e.g., cable and wireless), while in other cases,
a company may focus on just one type of service (e.g., fiber-optic). Without an ISP, individuals and businesses
could not reach the internet and the opportunities it provides.

History of Internet Service Provider

The internet was introduced in Nepal in 1994 which is just after 4 years of the initial global launch. We cannot
say, it took a lot of time because it was the first time that new technology was being introduced which requires
a heavy investment of physical infrastructure. Currently, World Link is the largest internet service provider in
Nepal which was established in 1995 AD. It started providing internet in Nepal through a dial-up connection
modem. Cable internet was started in Nepal in 2005 AD by Subisu Cablenet Ltd., a private company. It was
established in 2001 AD and started its’ venture through a Cable TV Service provider. Subisu was the first
company to launch broadband internet in Nepal using DOCSIS Technology based on Hybrid Fiber Coaxial
Cable to provide dual play service of Internet and TV over the same cable.
According to a report published by NTA for up to September 2023, the total number of users of fixed
broadband connection internet in Nepal has reached 12,722,311. This includes wired and wireless broadband.
The number of mobile broadband users i.e. 3G and 4G SIM users (active users) is 17,431,039 (NTC: 8713063
plus NCELL: 8717976) which also counts corporate users and dual SIM users as individual subscribers. Since
the government imposed a nationwide lockdown, internet utilization across the country has jumped 25 percent.
With more people staying and working from home, ISPs ran out of bandwidth quickly, resulting in slow internet
and a spike in complaints. According to the association, internet companies have started bolstering their
networks by adding additional international bandwidth capacity. Internet utilization after the lockdown has
reached 500 gigabytes, an increase of 30-40 percent.
Major Types of ISPs:
1. Wireline or Wired ISPs:
 DSL Providers: Deliver internet access over existing telephone lines using Digital Subscriber Line
(DSL) technology.
 Cable ISPs: Use coaxial cable television lines to provide broadband internet access.

2. Fiber-Optic ISPs:
Provide internet services using fiber-optic cables, offering high-speed and reliable connectivity.
3. Wireless ISPs (WISPs):
Use wireless technologies, such as radio waves or microwaves, to transmit data between the ISP and
the user. Common in rural areas where wired infrastructure may be impractical.
4. Satellite ISPs:
Utilize satellite technology to provide internet access, making them suitable for remote and geographically
isolated areas.
5. Mobile ISPs:
Offer internet services through mobile networks, using technologies like 4G LTE and 5G. Provide
connectivity to mobile devices such as smartphones, tablets, and mobile hotspots.

Some of the Major ISP companies that are providing services in the Nepalese Context are as follows:
1. Worldlink
2. Nepal telecom FTTH
3. Classic Tech
4. Vianet
5. Subisu
6. Dish home Fibernet
7. Web Surfer
8. CG Net
9. Broadlink
Number of Subscribers (As of October 2023):

Challenges of the ISP’s in Nepal:

1. Limited infrastructure: Nepal has a limited infrastructure for internet services, which makes it
difficult for private ISPs to expand their coverage and provide high-speed internet to remote areas.
2. Government regulations: The government of Nepal has strict regulations for ISPs, which can
make it difficult for private companies to operate and compete with state-owned ISPs.
3. Lack of competition: There is a lack of competition in the Nepali internet service market, which
can make it difficult for private ISPs to attract and retain customers.
4. High costs: Setting up and maintaining internet infrastructure in Nepal can be costly, which can
make it difficult for private ISPs to turn a profit.
5. Limited access to international bandwidth: Private ISPs in Nepal have limited access to
international bandwidth, which can make it difficult for them to provide high-speed internet to
their customers.
6. Power cut: Nepali ISP companies heavily rely on electricity, and power cuts occur frequently in
Nepal, which makes it difficult for the ISPs to maintain their services.
7. Lack of awareness and low penetration: There is a lack of awareness among the general
population about the benefits of the internet and its usage, which results in low penetration of
internet services in Nepal.
Rules and Regulation Governing ISPs in Nepal are as follows:

 National Broadcasting Act 1993 A.D.-

https://www.nta.gov.np/uploads/contents/The-National-Broadcasting-Act1993.pdf
 ISP Related Bylaw 2077- https://www.nta.gov.np/uploads/contents/ISP-Bylaws-2077-
Final-Version-with-annexes.pdf
 Cyber-Security-Bylaw-2077-2020-https://www.nta.gov.np/uploads/contents/Cyber-
Security-Bylaw-2077-2020.pdf
 WiFi-Security-Bylaw-2075-https://www.nta.gov.np/uploads/contents/WiFi-Security-
Bylaw-2075.pdf