Nepal Drafts New Telecom Policy to Cut Broadband Costs and Boost Digital Literacy

Kathmandu, Nepal — August 21, 2026

Nepal is preparing a new integrated telecommunications policy aimed at making broadband internet more affordable, improving digital literacy and strengthening the country's broader digital economy.

The draft policy, proposed by the Nepal Telecommunications Authority (NTA), sets ambitious targets for the next five and ten years. Among its key goals is reducing the cost of basic broadband services to 2.4% of per capita Gross National Income (GNI) within five years and further to 1.5% within ten years.

Making Internet More Affordable

Affordable internet remains a major part of Nepal's digital transformation agenda. The new draft policy aims to bring broadband costs closer to internationally recognized affordability targets while expanding access beyond major urban centres.

The affordability goal is particularly significant because Nepal's telecommunications sector has faced concerns over the cost of connectivity and the financial burden created by taxes and other regulatory costs. Earlier reporting in 2026 noted that, while some mobile broadband services were closer to international affordability benchmarks, wireless broadband costs remained relatively high compared with average income.

If implemented successfully, the proposed policy could make reliable internet more accessible to students, small businesses, remote workers and communities in rural areas.

Digital Literacy Targeted at 85% Within a Decade

The draft policy does not focus only on infrastructure and internet pricing. It also places major emphasis on improving the ability of Nepali citizens to effectively use digital technologies.

According to the proposed targets, Nepal aims to achieve:

• 60% digital literacy within five years

• 85% digital literacy within ten years

The policy envisions expanded digital skills programmes to help citizens participate more effectively in an increasingly digital economy and society.

This could have implications across education, employment, entrepreneurship and access to digital public services. Expanding internet access without improving digital skills can leave many citizens unable to fully benefit from connectivity, making digital literacy a central part of the proposed strategy.

ICT Contribution to Nepal's Economy

The policy also sets economic targets for Nepal's information and communications technology sector.

The NTA's draft proposes increasing the direct contribution of ICT to Nepal's GDP to:

• 4% within five years

• 7% within ten years

This indicates a broader policy shift: telecommunications infrastructure is being viewed not simply as a utility, but as a foundation for economic growth.

Improved connectivity could support sectors including education, healthcare, tourism, industry, energy and digital services. A stronger telecommunications ecosystem may also create opportunities for software companies, startups, digital payment platforms, online businesses and remote employment.

One Policy to Bring Multiple Frameworks Together

Another important aspect of the proposed policy is consolidation.

The new framework is intended to integrate several earlier policies, including:

• Information and Communications Sector Long-term Policy

• Telecommunications Policy

• Broadband Policy

• ICT Policy

At the same time, it is designed to work alongside newer national strategies involving satellite communications, cybersecurity, radio-frequency allocation and artificial intelligence.

The move reflects how rapidly the technology landscape has changed. Telecommunications policy today must address far more than traditional phone networks. Modern digital infrastructure increasingly involves broadband, mobile connectivity, cloud services, satellite systems, AI, cybersecurity and emerging communication technologies.

Focus on Rural Connectivity and the Digital Divide

A major challenge for Nepal is ensuring that digital progress reaches communities outside major cities.

The draft policy emphasizes reducing the country's digital divide through infrastructure expansion, particularly in rural and underserved areas. It also highlights the adoption of innovative technologies and stronger public-private partnerships.

For a geographically challenging country like Nepal, expanding high-quality and affordable connectivity can be difficult. Mountainous terrain and remote settlements can increase infrastructure costs and complicate network deployment.

The proposed policy therefore has the potential to play an important role in connecting communities that may currently have limited access to reliable digital services.

Competition, Spectrum and Emerging Technology

The draft also addresses the regulatory environment of Nepal's telecommunications industry.

Its priorities include:

• More competitive licensing

• Improved radio-frequency distribution

• Development of skilled human resources

• Research into emerging technologies

• Greater adoption of ICT across major economic sectors

• Public-private collaboration in infrastructure and innovation

These measures could become increasingly important as Nepal prepares for technologies and services that require more advanced telecommunications infrastructure.

What Happens Next?

It is important to note that this is currently a draft telecommunications policy, meaning the proposed targets and framework still need to move through the appropriate policy development and approval process.

The real impact will depend heavily on implementation.

Setting ambitious targets for cheaper broadband, higher digital literacy and greater ICT contribution to the economy is only the first step. Achieving them will require investment in infrastructure, effective regulation, cooperation between government and private telecom operators, and programmes that ensure rural and lower-income communities are not left behind.

Why This Matters for Nepal

Nepal's proposed telecommunications policy could become an important part of the country's long-term digital transformation.

If the affordability targets are achieved, more Nepalis could gain access to broadband services at prices that represent a smaller share of household income. If digital literacy programmes meet their targets, more citizens could have the skills needed to use online services, participate in the digital economy and access new employment opportunities.

The broader ambition is clear: connect more people, reduce the cost of connectivity, improve digital skills and turn ICT into a larger contributor to Nepal's economy.

However, the success of the policy will ultimately depend on how effectively its goals are translated from targets on paper into affordable, reliable and accessible digital services across the country.