Attorney General's Office Rules Against Imposing Telecom Service Charge on Fixed Broadband Maintenance Fees

The Office of the Attorney General has issued a significant decision ensuring that consumers are not burdened with additional financial charges for fixed broadband internet services. This decision confirms that the practices of internet service providers in Nepal are lawful and provides relief to consumers.

Currently, Nepal remains a leader in South Asia for fixed wired broadband (FTTH) services due to its high speed and affordable pricing. The Telecommunications Regulation 2054, Telecommunications Act 2053, and provisions of the Economic Act are applied for the operation of this sector.

According to Rule 15(j) of the Telecommunications Regulation, 2054, service providers are permitted to charge up to 50 percent of the total fee as a 'Maintenance Fee'. Furthermore, there is a legal provision to set service charges at the rates approved by the Nepal Telecommunications Authority.

The Economic Act clearly stipulates that the Telecommunications Service Charge (TSC) is not applicable to the maintenance fee, which is up to 50 percent of the fixed broadband service fee. Based on this, service providers have not been collecting TSC on maintenance fees to date.

However, in recent days, some parties had raised demands to impose TSC even on the maintenance fee. Following a review by the Nepal Telecommunications Authority and other concerned bodies, the Office of the Attorney General provided a clear conclusion on this matter.

According to the office's decision, the current practice of not imposing TSC on the maintenance fee is appropriate according to existing policy and the Economic Act.

The practice of ISPs collecting TSC only on the internet portion (50%) of the service fee and depositing it into revenue is lawful.

This decision confirms that internet service providers have complied with the law and ensures that unnecessary charges are not imposed on consumers. It is believed that this will further support the expansion of cheap, easy, and accessible internet services in Nepal.