In February 2025, Nepal narrowly avoided a total internet blackout as Airtel and Tata—which supply 90% of Nepal’s bandwidth—issued warnings over $30 million (approx. Rs 4 billion) in outstanding dues. ISPAN has been the primary mediator in this crisis, which stems from a tax dispute between ISPs and the government.

While 70% of ISPs have cleared their government dues, the Ministry of Communication has delayed recommending the necessary foreign currency exchange facilities. ISPAN argues that holding up payments to international vendors is a high-risk gamble that could paralyze Nepal’s digital economy, including banking and aviation.

• Economic Impact: A single hour of outage in 2025 cost the Nepali economy an estimated Rs 500 million.

• Current Status: ISPAN is pushing for a permanent mechanism where bandwidth payments are prioritized as an “essential import,” similar to petroleum products.