Nepal’s telecommunications regulator has fined 14 internet service providers Rs50,000 each for selling services in violation of its directives and approved tariffs and packages.
The Nepal Telecommunications Authority imposed the fines after inspections and investigations confirmed that the companies had breached the conditions of their operating licences, according to a press statement issued by the authority on Tuesday. The penalties were imposed under Section 47(1) of the Telecommunications Act, 1997.
The violations included ignoring the regulator’s directives, failing to deliver internet services in line with approved packages, charging customers more than the authorised rates, selling packages that had not received approval and failing to notify customers about such packages within the prescribed period, said Min Prasad Aryal, the authority’s spokesperson.
Aryal said the action was intended to curb practices that undermine consumer interests, including providing internet speeds or services that do not match approved packages and charging rates higher than those authorised by the regulator.
Under the authority’s tariff-setting guidelines, service providers must submit proposed rates for approval at least three months before they take effect. The proposals must specify the applicable rates and the date on which they are due to come into force. However, inspections found that some providers had failed to comply with these requirements, the authority said.
The 14 companies fined are Broadlink Network and Communication Pvt. Ltd., Classic Tech, Websurfer Nepal Communication System Pvt. Ltd., Fiberworld Communication, Vianet Communication, Arrownet Pvt. Ltd., Dish Media Network Ltd., Wi-Fi Nepal, CG Communications Ltd., WorldLink Communications, Firstlink Communication, Pokhara Internet Pvt. Ltd., Techminds Network Ltd. and Subisu Limited.
The authority has also directed the companies to immediately discontinue internet packages and tariffs introduced without its approval and inform the regulator of their withdrawal.
If customers have suffered financial or other losses as a result of the unauthorised practices, the companies must provide compensation or reimburse the losses upon the affected customers’ request, the authority said.
The regulator has warned all licensed telecommunications service providers that they must obtain approval before introducing any service package or tariff and must not operate packages without prior authorisation. It has also directed them to comply fully with existing laws, regulations and the conditions of their licences.
The action follows a warning issued by the authority on October 10, when it clarified that internet service charges had not been increased. At the time, it said it had received no proposals from service providers to raise tariffs and had not approved any increase.
The authority had cautioned providers against charging more than approved rates or operating services without authorisation in ways that harm consumers. It also reminded them of the requirement to make their approved tariffs public.
The regulator has urged customers to file complaints with the authority if they are charged more than the approved rates or find that a provider is operating illegally or violating consumer rights.
Ensuring compliance with the law is essential to protecting consumer interests, promoting fair competition and bringing internet services under proper regulatory oversight, the authority said.