Nepal’s top ISPs, WorldLink and Subisu, owe billions to Indian providers. Discover the tax tangle, bandwidth blackouts, and why users are stuck buffering

You’re halfway through a Zoom call, and the screen freezes.

You try watching YouTube, and it keeps buffering.

You call WorldLink, Subisu, or some other ISP, and they say the issue is being “looked into.”

But what if the real reason your internet is slow has nothing to do with your router, your plan, or your neighbor’s Netflix habits?

What if it’s because your internet service provider hasn’t paid their internet bill?

That’s the bizarre reality facing Nepal right now.

Behind every loading wheel and dropped video call, there’s a massive crisis unfolding in the background. One that involves billions in unpaid dues, cross-border internet deals with India, and a tug-of-war between ISPs and the Nepali government.

Let’s break it all down, who owes what, to whom, and why Nepal’s internet hangs by a thread connected to Delhi.

1. How Much Do Nepali ISPs Owe Indian Companies?

Nepal doesn’t create its own internet. Instead, it buys most of its internet bandwidth from India, specifically from two giants: Airtel and Tata Communications.

And here’s the problem: Nepali ISPs haven’t been paying their bills.

1.1 Total Outstanding Dues

As of early 2025, the total amount owed by Nepali ISPs to Indian bandwidth providers is more than Rs. 8 billion.

That’s not a typo. That’s Rs. 8,000,000,000. Enough to build highways, fund public health programs, or provide free internet to thousands.

Breakdown by Indian company:

• Airtel: Rs. 4.29 billion
• Tata Communications: Rs. 2.68 billion

Combined, they carry the digital lifeline Nepal relies on, and both are growing increasingly impatient.

1.2 Company-wise Dues (Nepali ISPs)

Let’s talk about some of the major Nepali ISPs caught in this bandwidth debt storm.

Subisu Cablenet

• Outstanding dues: Around Rs. 1.5 billion
• Subisu owes the largest single amount among all Nepali ISPs.
• That means if you’re a Subisu user, part of your buffering might be tied to this unpaid bill.

WorldLink Communications

• Partial payment: Paid Rs. 1 billion as a first installment.
• But it still owes a significant chunk.
• Despite being the biggest ISP in Nepal, WorldLink has been caught in a tough spot, especially due to a long legal battle over taxes (more on that in the next section).

Other ISPs (Vianet, Nepal Telecom, Ncell, etc.)

• These ISPs also owe large sums to Indian vendors.
• However, their exact dues are not publicly disclosed.

In short: almost every major internet company in Nepal is part of this problem.

1.3 Payment Status and Government Roadblocks

Here’s where things get more complicated.

Even if ISPs want to pay their dues, they can’t, because the government is blocking them from exchanging Nepali rupees into foreign currency.

Why?

Because the ISPs haven’t paid certain taxes and royalties that the government says are due.

Until those are cleared, the government has refused to grant foreign currency exchange approvals, which means companies like Subisu and WorldLink are stuck in limbo. They’re being told: “No dollars for you until you pay us first.” 

We’ll talk more about this later in the article.

1.4 At a Glance: Who Owes What?

2. Why Nepal Can’t Just Pay the Bill (Even If It Wants To)

If you’re thinking, “Wait, why don’t companies like WorldLink and Subisu just pay up and fix the internet?”, you’re not alone.

On the surface, it seems simple: You owe money → You pay it → Everyone gets back to scrolling TikTok in peace.

But in reality, it’s a messy bureaucratic soup, tangled in taxes, court cases, and government red tape. Here’s why Nepal’s ISPs are stuck in this never-ending payment loop:

2.1 The Government Is Blocking Foreign Exchange

To pay Indian companies like Airtel and Tata, Nepali ISPs need to send money abroad. That requires converting Nepali rupees into Indian rupees or U.S. dollars.

But here’s the catch: ISPs can’t do that without government permission.

And the government, through Nepal Rastra Bank and the Ministry of Communications, has refused to issue that permission unless the ISPs settle their tax dues first.

So even if Subisu or WorldLink wanted to pay Airtel tomorrow, they legally can’t, unless they clear all their pending taxes.

It’s like trying to pay your house rent, but your bank blocks the transfer because you haven’t paid an unrelated electricity bill from five years ago.

2.2 The Tax and Royalty Dispute: A Long Legal Battle

Let’s rewind a bit.

Since 2017, ISPs have been collecting various charges from customers, not just for internet access, but also for things like maintenance, hosting, and data storage.

The government says: “Hey, you collected those fees? You owe taxes and royalties on them!”

The unpaid taxes are mainly:

• Royalty fees ISPs owe for using telecommunications spectrum
• Rural Telecommunications Development Fund (RTDF) charges, a kind of mandatory public service fee collected to expand rural connectivity

The ISPs say: “That’s not fair, some of those services aren’t even telecom-related.”

The result? A years-long legal battle.

In early 2024, WorldLink, among others, took the matter to the Supreme Court.

The court ruled against the ISPs. It confirmed: yes, they do owe the taxes and royalties they had been avoiding, especially charges under the Rural Telecommunications Development Fund (RTDF) and maintenance royalties dating back to FY 2017/18.

Now, unless WorldLink, Subisu, and other ISPs pay up, the government won’t let them send money abroad. And that means Indian providers don’t get paid. And that means we keep buffering. Call this a classic “chicken or egg” problem.

As a result, we’re stuck in a loop:

Taxes unpaid → Govt blocks FX approval → ISPs can’t pay Airtel/Tata → Indian vendors cut bandwidth → Internet service deteriorates → Users get frustrated → Revenue falls → ISPs struggle more to pay taxes.

This loop has already led to internet blackouts, massive public complaints, and serious questions about digital governance in Nepal.

2.3 Bureaucracy Is Slowing Everything Down

Even if an ISP clears its taxes, it still has to:

1. Get approval from Nepal Rastra Bank,
2. Coordinate with the Ministry of Communications,
3. Work with the Nepal Telecommunications Authority (NTA),
4. And then finally request foreign exchange clearance.

This process is especially painful for private players like Subisu and WorldLink. It takes weeks or even months, and any missing paperwork can reset the clock.

State-run ISPs like Nepal Telecom often face fewer hurdles, but private companies carry the bulk of Nepal’s internet traffic.

2.4 The Financial Strain Is Real

Let’s not forget: ISPs themselves aren’t swimming in cash.

They operate on thin margins, especially in a market where:

• Prices are kept low due to public pressure,
• Infrastructure costs are high,
• And tax disputes have frozen much of their operating capital.

Subisu alone owes Rs. 1.5 billion. WorldLink already paid Rs. 1 billion, and still has more dues. Even if these companies wanted to settle the full amount right away, they might not be financially equipped to do so.

In short: it’s not that Nepal’s ISPs won’t pay, it’s that they can’t. Not without government approval, tax settlements, and a miracle of bureaucracy working smoothly.

3. How This Affects Us

Let’s get one thing straight: you’ve been paying your internet bill.

Every month, without fail, money leaves your pocket and lands in the hands of ISPs like WorldLink, Subisu, or others.

So, naturally, you expect uninterrupted service; fast speeds, zero buffering, and reliable Zoom calls.

But instead, what you often get is slow loading, random outages, or service “maintenance” with zero warning.

Here’s why this situation is deeply unfair to internet users in Nepal, and how we’re stuck paying the price for a fight we had nothing to do with.

3.1 Internet Outages and Poor Service? It’s Happening Because Bills Aren’t Paid

Nepal’s internet comes through cables that connect us to Indian giants Airtel and Tata Communications. These cables don’t work for free, they need to be paid for.

But when ISPs like WorldLink or Subisu can’t send money to Airtel or Tata because of the issues we explained in Section 3, those Indian companies restrict or cut bandwidth.

That’s exactly what happened in:

• May 2024, and again in
• February 2025, when Airtel pulled the plug partially due to unpaid dues.

The result?

• Internet blackouts across Nepal.
• Schools lost access to online classes.
• Businesses couldn’t operate.
• And everyday users like us couldn’t even open YouTube or check our bank app.

This isn’t theoretical. It’s already happened, and it could happen again.

3.2 Why It’s Unfair to Us (the Paying Users)

Here’s where it really hurts:

We’re paying for:

• Monthly internet access
• 13% VAT
• Royalty and telecom fund charges (yes, they’re in the bill)

But we’re getting:

• Slow speeds
• Unplanned outages
• Excuses about “network congestion”

The irony?

ISPs collect taxes and fees from us, but don’t transfer them to the government, which is exactly why the government is blocking their payments to Indian vendors.

It’s a vicious cycle:

1. We pay.
2. ISP keeps the money or delays transferring taxes.
3. Govt blocks their payments to Indian ISPs.
4. Indian vendors cut bandwidth.
5. We buffer.

And the loop begins again.

3.3 Stuck in the Middle, With No One to Blame (and Everyone to Blame)

Let’s be honest: neither the government nor the ISPs are blameless.

• The government is using foreign exchange approval as a pressure tactic.
• The ISPs, including major ones like WorldLink and Subisu, resisted paying long-overdue taxes for years.
• And in the middle? Us, the paying customers. Powerless, voiceless, and buffering.

It’s like a fight between your landlord and the electricity company, and we're the one sitting in the dark.

4. What the Supreme Court Verdict Changed

Until early 2024, Nepal’s internet crisis was locked in a blame game.

ISPs like WorldLink and Subisu said:

“We want to pay Airtel and Tata, but the government won’t let us send money abroad.”

The government said:

“Not until you pay your taxes.”

Meanwhile, users kept paying their bills, and kept buffering.

Then came the Supreme Court verdict, and it changed everything.

4.1 What Was the Dispute?

Since 2017, ISPs had been collecting fees (like hosting, cloud, and maintenance), arguing these weren’t “telecom services” and thus not taxable.

The government disagreed, and said these charges included RTDF and royalty fees that must be paid.

So ISPs went to court.

4.2 The Verdict: ISPs Must Pay

In early 2024, the Supreme Court dismissed all ISP petitions.

It ruled:

• ISPs must pay all outstanding dues since FY 2017/18.
• Even if they didn’t forward collected charges to the government, they’re still responsible.

In short: “You charged your customers. Now pay up.”

4.3 Why the Delay?

Although the ruling was announced, nothing moved until the full written verdict came out in late 2024.

That held up foreign exchange approvals, tax recovery notices, and gave a false sense that the issue was “resolved.”

4.4 What’s Happening Now?

• ISPs accepted the ruling and are working with NTA on payment terms.
• The government is now approving foreign exchange only for tax-compliant ISPs.
• WorldLink and Subisu are reportedly paying dues in phases.
• Parliament wants full recovery from all ISPs.

The verdict gave the government authority, and finally gave ISPs a roadmap.

Whether it leads to lasting stability? That depends on what comes next.

5. Why Nepal Depends So Heavily on Airtel and Tata

Nepal’s internet doesn’t magically appear in the air. It has to come from somewhere, and that “somewhere” is mostly India.

Think of Nepal as being at the very end of a long internet pipeline, and two Indian giants, Airtel and Tata Communications, control the taps.

So why are we so reliant on them? And what happened to all that talk about connecting with China?

Let’s break it down.

5.1 Geography + Infrastructure = India is the Default

Nepal shares a long, open border with India, with well-established terrestrial fiber routes at Bhairahawa, Birgunj, Dhalkebar, and Biratnagar.

These entry points are:

• Close
• Reliable
• Already built

Naturally, when Nepal started expanding internet services years ago, it made sense to plug into India’s massive digital network.

This is why companies like WorldLink and Subisu source most of their upstream bandwidth from Airtel and Tata Communications, the two dominant players on the Indian side.

5.2 Airtel and Tata: The Gatekeepers

As of today:

• Airtel supplies 70–80% of Nepal’s international internet bandwidth
• Tata Communications provides about 20%

That means over 90% of the internet we use in Nepal, from TikTok and Instagram to online banking and remote work, flows through cables controlled by just two Indian providers.

It’s a digital monopoly with enormous power.

If Airtel sneezes, Nepal catches a cold.

If Tata pulls back, we might not even be able to send a WhatsApp message.

5.3 What About the China Route?

Back in 2016, Nepal operationalized its fiber optic link with China via the Rasuwagadhi-Kerung route.

It was supposed to be the ultimate way to break India’s monopoly and diversify our internet sources.

So what happened?

• The Chinese route is technically challenging: rough terrain, long distances, and higher latency.
• It’s also more expensive per Mbps than Indian bandwidth.
• And politically, it’s more sensitive as cross-border coordination isn’t as smooth as with India.

As a result, Nepal still gets less than 10% of its internet bandwidth from China. The dream of digital diversification remains largely unrealized.

5.4 Monopoly = No Bargaining Power

Because Airtel and Tata dominate the supply, Nepali ISPs like WorldLink and Subisu have almost no leverage in negotiations.

They can’t say:

“We’ll switch to another vendor if you raise prices.”

Because there isn’t another vendor. Not one that’s equally affordable, fast, and ready to supply large-scale bandwidth immediately.

This lack of alternatives gives Indian ISPs the power to:

• Raise prices
• Set strict contract terms
• Cut bandwidth if payments are delayed

And we’ve already seen how devastating that last one can be.

So the next time your Zoom call drops or your Subisu internet slows down, remember, it’s not just a technical glitch. It might just be a geopolitical bottleneck.

6. Can Nepal Reduce Its Dependency on India?

So far, we’ve seen how Nepal’s internet lifeline runs almost entirely through India, and how even companies like WorldLink and Subisu, with massive infrastructure and user bases, are powerless when that lifeline is squeezed.

 The good news? Nepal already has a plan: the Digital Nepal Framework.
But can it fix our internet woes?
Yes, but not overnight.

Let’s explore what it would take,  and what’s holding us back.

6.1 Diversifying International Connectivity

China Fiber Link (Rasuwagadhi-Kerung)

Nepal technically already has an alternative: the fiber optic link with China,
But here’s the reality:

• Less than 10% of Nepal’s bandwidth currently comes through China.
• The route is expensive, technically fragile, and suffers from higher latency (i.e., it’s slower).
• The geography isn’t friendly. Mountains, snow, and landslides don’t exactly scream “stable internet highway.”

Still, this link remains our best shot at reducing total dependence on India, if we invest in making it more robust.

Exploring Bangladesh and SEA Gateways

Nepal has also floated ideas to access submarine cable bandwidth via Bangladesh, potentially connecting to broader Southeast Asian networks.

But that requires:

• Diplomatic coordination with India and Bangladesh
• New infrastructure
• Transit agreements (which aren’t easy to negotiate)

6.2 Developing National Fiber and Data Infrastructure

The more data we can process within Nepal, the less we rely on foreign internet routes.

That means:

• Building a strong nationwide optical fiber backbone
• Expanding Fiber-to-the-Home (FTTH) in rural and semi-urban areas
• Encouraging local content hosting and data centers

When YouTube or a website loads from Kathmandu instead of Delhi, you don’t just get faster speeds, Nepal also saves on international bandwidth costs.

6.3 Encouraging Private Investment in Digital Infrastructure

Let’s face it: the government can’t do this alone.

To truly become digitally self-reliant, Nepal needs:

• More private ISPs with international bandwidth licenses
• Foreign direct investment (FDI) in telecom infrastructure
• Clearer, friendlier policies for startups working on internet tech, cloud, and data storage

Right now, most of the burden falls on a handful of big players, mainly WorldLink, Subisu, and a few others. And that’s risky.

6.4 Policy and Regulatory Reforms

We also need smarter rules. Period.

That includes:

• Streamlining foreign exchange approvals
• Providing tax clarity for ISPs
• Ensuring spectrum and telecom policies align with a digital-first future

When rules are predictable, private players are more likely to invest.

6.5 Regional Cooperation: Digital SAARC?

Nepal could also:

• Join South Asian regional internet initiatives
• Share infrastructure with Bhutan, Bangladesh, and even China
• Push for redundant cross-border routes so one outage doesn’t paralyze the country

Imagine Nepal having three or four different pipes to the global internet, not just one that India controls.

6.6 Grow Local ICT Talent and Innovation

Nepal has tech talent, but we’re losing it to other countries.
Digital Nepal aims to:

• Retain talent through job creation
• Support ICT startups
• Encourage collaboration between government, academia, and private firms

This could lead to Nepali cloud platforms, local hosting, and domestic internet exchanges, cutting foreign reliance.

Reducing Nepal’s dependency on India won’t happen overnight. But with focused investment, policy reform, and regional coordination, we can build a more resilient, affordable, and sovereign digital future.

Conclusion: A Nation Deserves Better Internet

Nepal’s internet crisis isn’t just a story of unpaid bills.

It’s a reflection of deep structural problems in how we run critical services, and who pays the price when things fall apart.

For years, Nepali ISPs operated in a gray zone: collecting taxes and fees from users, building massive customer bases, but postponing payments to both the government and their upstream providers.

The government, instead of enforcing clarity early on, waited until the problem exploded, and then used foreign exchange controls as a blunt instrument of pressure.

Caught in the middle?
The users, everyday people and businesses, who paid their bills on time but got unreliable service in return.

This Crisis Exposed Five Big Truths:

1. Nepal’s internet is dangerously dependent on Indian providers like Airtel and Tata.
2. ISPs failed to follow through on obligations to both the government and their vendors.
3. The government responded too late, using payment restrictions instead of proactive reform.
4. Digital Nepal needs more than slogans, it needs reliable infrastructure, redundancy, and accountability.
5. Users have no protection against institutional failure, despite being the only ones who actually paid.

So What Now?

There is a path forward, but it requires urgency and coordination:

• Government must streamline policies, simplify tax compliance, and stop weaponizing foreign exchange approvals.
• ISPs, especially market leaders like WorldLink and Subisu, must embrace transparency and rebuild trust with users.
• Investments in diversification from the China route to data centers to local content must become a national priority.
• And above all, users must demand better,  not just faster internet, but an internet system that’s fair, transparent, and resilient.

Because in 2025,

Internet is not a luxury.

It’s not a weekend add-on.

It’s a lifeline for education, for business, for global connection, and for democracy.

Nepal deserves better than an internet held hostage by tax disputes and bureaucratic gridlock. We deserve an internet we can rely on, an internet that works, even when politics don’t.

Additional Resources:

• How to Earn Money Online in Nepal with Khatapana in 2025
• Tax Rate in Nepal: A Comprehensive Guide to Tax Slabs, Deductions, and Tax Calculator Tools 
• How to Check IPO Results in Mero Share: A Complete Step-by-Step Guide
• Salary and Tax Calculator in Nepal: Simplifying Your Financial Planning