Attorney General’s Landmark Decision Protects Nepal’s Internet Industry and Consumers

Private Internet Service Providers (ISPs) in Nepal have been instrumental in driving digital transformation, expanding internet access nationwide, creating jobs, and contributing significantly to government revenue for over two decades. Recently, a legal dispute arose over the Telecommunications Service Charge (TSC) on broadband, particularly whether the Support & Maintenance (S&M) fees should be taxed.

The Attorney General, Savita Bhandari, ruled in favor of the ISPs, clarifying that charging TSC only on internet fees while exempting S&M fees is legally correct, in line with existing laws, regulatory approvals, cabinet decisions, Supreme Court precedent, and seven years of consistent practice. This decision prevents additional financial burden on consumers and safeguards billions in ISP investments.

The ruling reinforces the internet as a fundamental human right and ensures Nepal continues to provide affordable, high-quality broadband, supporting the goals of a Digital Nepal and strengthening digital governance, access, and innovation.

Key Points:
1. ISPs have expanded the internet to remote areas and contributed to the economy.
2. The legal dispute centered on whether S&M charges fall under TSC.
3. Attorney General’s decision confirmed the exemption of S&M from TSC.
4. The ruling protects consumers from extra costs and secures ISP investments.
5. Internet access is recognized as a basic human right essential for digital development.