The government, telecom regulator, and service providers in Nepal have all expressed interest in introducing fifth-generation (5G) mobile technology, as the country looks to modernise its digital infrastructure. While 5G services are already commercially available in around 130 countries, including most of South Asia, Nepal is now preparing to join them.

The Nepal Telecommunications Authority (NTA), the sector regulator, has said it has already finalised frequency allocation for 5G and is preparing to move ahead with the spectrum auction. Nepal Telecom has stated that it has internally decided to launch 5G services in major metropolitan cities once it receives spectrum. Private operator Ncell has also been repeatedly requesting spectrum for several years.

The Ministry of Information and Communications has highlighted that 5G will serve as a key foundation for smart cities and modern communication systems.

At an interaction programme titled “Current State of Telecommunications in Nepal” organised on Thursday by the Technology Journalists Forum, NTA Director and Spokesperson Min Prasad Aryal said preparations for spectrum allocation for 5G were complete.

“We are ready to move into the auction process after finalising the spectrum for introducing 5G technology,” he said. “If service providers are ready, there will be no problem for the authority in distributing spectrum.”

Nepal Telecom Deputy General Manager Rajendra Dulal and Senior Business Officer Prakash Chandra Sigdel said the company has already decided to launch 5G in major cities. They added that Nepal Telecom had conducted trials of the technology three to four years ago and is currently waiting for frequency allocation.

“When we conducted trials, only about five percent of mobile handsets in the country were 5G-enabled,” said Dulal. “Now that figure has risen to more than 20 percent, which shows the market is becoming ready.”

Private telecom operator Ncell had, in April this year, applied for permission for a third time to conduct 5G trials. The company has requested 15 MHz in the 700 MHz band and 10 MHz in the 2600 MHz band from the NTA. Ncell had previously applied for 5G testing on April 21, 2021, and again on August 31 the same year.

Ncell has said it plans to invest between 200 million and 250 million US dollars for 5G trials and broader telecom expansion. At a conference organised by Kantipur in February, Ncell CEO Michael Foley said the company was committed to remaining in Nepal and had strong financial capacity for investment.

“We want to remain in Nepal. We also have strong investment capacity,” Foley said. “There is no debt on our balance sheet. We are ready to invest between 200 and 250 million dollars to expand telecom infrastructure here.”

He said the company aims to support enhanced mobile broadband offering speeds of up to 10 Gbps, as well as smart city applications and Internet of Things (IoT) services.

At the event, Krishna Kumar Jha, an engineer at the Ministry of Communications and Information Technology, said the government is always open to new technology.

According to him, 5G is essential for smart cities and modern communications.

“5G is important not just for individual use, but for smart cities, machine-to-machine communication, and digital governance,” he said. “For basic data use, 4G may be sufficient. But 5G is needed for smart meters operated by the telecom authority, GPS tracking of public buses, and high-quality live streaming of events such as the Nepal Premier League.”

Telecommunications expert Anand Raj Khanal, however, warned that moving to 5G while 4G services are still underperforming could lead to complaints about quality.

He noted that the telecom sector is complex and continuously evolving, making it difficult to ensure high-quality service delivery.

“The current political and administrative situation has not allowed real reform in the telecom sector,” he said. ““The regulator is meant to function independently, but it has effectively become an extension of the ministry. As its leadership is appointed by the prime minister or the minister, it lacks the authority to effectively influence government decisions on key issues.”

Despite the planned investment running into hundreds of millions of dollars, service providers remain concerned about return on investment.

Some countries in the region have argued that priority should still be given to strengthening and optimising existing 4G networks before moving to 5G.

In South Asia, Nepal, Bhutan, and Afghanistan are currently the only countries without commercial 5G services. Meanwhile, major telecom markets such as India, China, and the United States are already discussing competition over who will be the first to roll out 6G technology.