National
Tackling complex telecom, digital, and regulatory challenges
New communication minister must navigate social media policy gap and fragile digital governance.Sajana Baral
An academic with experience in media, Bikram Timilsina has got the charge of the Ministry of Communications and Information Technology. The ministry is responsible for overseeing important institutions.
However, observers say his lack of direct managerial experience in handling large-scale telecom and regulatory bodies could complicate decision-making in a sector already burdened by long-standing disputes.
Experts warn that social media regulation alone could prove a major test. Several global platforms have resisted Nepal’s tax framework. TikTok, for instance, has declined to pay VAT locally, arguing that taxes are already settled through intermediaries such as Google and Apple. This reflects a broader challenge Nepal faces in enforcing compliance among multinational technology firms.
The issue is further complicated by geopolitical pressure. US President Donald Trump has repeatedly warned of retaliatory measures against countries imposing digital service taxes. Nepal currently levies a 2 percent digital service tax and 13 percent VAT on such platforms. Balancing international pressure with domestic regulatory needs will require careful calibration.
Telecom expert Anand Raj Khanal says Nepal’s social media governance is in disarray, with no clear policy direction from major political parties. He argues that coercive approaches, such as threatening platform bans, are ineffective. Instead, he suggests sustained diplomatic engagement to ensure companies appoint local representatives and comply with national laws.
Timilsina’s limited exposure to international regulatory negotiations could make such engagements difficult. At the same time, unresolved telecom issues continue to pile up. These include Ncell’s licence renewal, Nepal Telecom’s billing system inefficiencies, and disputes involving internet service providers over taxation and infrastructure sharing.
Khanal describes the sector as being in an existential crisis, warning that any decision could trigger political and legal backlash. He highlights Ncell’s future as particularly sensitive. If the company limits its operations to its current licence ending in 2029, it may scale back investment, potentially degrading service quality and harming consumers. Such outcomes could also damage Nepal’s image among foreign investors.
Policy clarity and timely decisions on licence renewal and ownership transfer, Khanal says, are essential to maintaining investor confidence.
Beyond telecom, Timilsina must also serve as the government spokesperson, adding another layer of complexity to his role. Information technology expert Bibek Rana notes that the ministry oversees a wide range of sectors, including film, broadcasting and digital services, requiring careful prioritisation.
Rana argues that Nepal’s digital policy failures stem from an inability to learn from past mistakes. Despite repeated initiatives over the past 15 years, tangible progress has remained limited. He urges the new minister to conduct a serious review of past policies before launching new programmes.
Key structural gaps persist. Nepal lacks a clear data governance framework, and enterprise architecture has not been effectively implemented across government systems. Experts say integrating these components into future policies will be critical.
Public trust in digital systems is another concern. Rana stresses the need for secure and verifiable digital records, warning that without confidence in technology, adoption will remain limited.
The ruling Rastriya Swatantra Party has pledged to introduce a “faceless” and paperless governance system by the next five years, integrating the Nagarik App and national identity card across public services. If implemented effectively, this could reduce bureaucratic inefficiencies and eliminate intermediaries in sectors such as land administration, transport and passports.
Senior journalist Shiva Gaunle says the communication minister’s role goes beyond policy oversight. He stresses the importance of maintaining transparent, two-way communication with the public, rather than merely announcing government decisions.
Meanwhile, CAN Federation President Sunaina Pandey highlights implementation challenges. Despite a strong parliamentary position, she said the government’s success will depend on how effectively it mobilises the bureaucracy.
Pandey also points to structural issues in the IT sector. Many firms have struggled financially since the Covid-19 pandemic, with some unable to meet tax and loan obligations. She calls for targeted relief policies and reforms to improve the business environment.
Taxation remains a key concern. Domestic IT firms face higher tax burdens compared to freelancers and outsourcing entities. Pandey suggests reforms in tax deduction mechanisms and improved access to credit, noting that the lack of collateral-based lending options has constrained business expansion.
Experts also warn that political manifestos have failed to address fundamental challenges in the technology sector. Nepal’s data security infrastructure remains weak, requiring substantial investment. There is also an urgent need to develop skilled human resources in emerging fields such as artificial intelligence.
Khanal notes that while policy documents often include buzzwords like blockchain, they lack concrete plans to resolve legal and regulatory ambiguities.
Maintaining a balance between public and private service providers is another challenge. Competition between Nepal Telecom and private operators has helped keep prices low, but sustaining this balance will require careful oversight.
Corruption allegations within agencies under the ministry have further eroded morale among officials. Restoring confidence within institutions while addressing governance failures will be critical for the new leadership.
Khanal suggests issuing a white paper to clarify longstanding disputes, including the Ncell controversy. He says such a document should outline facts, identify policy failures, and ensure accountability.
Timilsina, who entered politics only two years ago, defeated former finance minister Prakash Sharan Mahat in Nuwakot-1. With an academic background and experience in journalism, he now faces a steep transition into one of the government’s most technically demanding portfolios.
His ability to navigate regulatory complexity, manage competing interests, and deliver credible reforms will define his tenure.




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