Broadband internet services in many parts of Nepal were disrupted on Thursday due to payment defaults by Indian vendors, causing private operators to face connectivity issues. The disruption led to notices being issued by private internet service providers in Nepal, informing customers of either disrupted services or slow connections. However, the state-run Nepal Telecom continued to provide internet services without interruption.
Two private mobile services in Nepal were still operational, but their internet speed was noticeably affected by the disruption. The root cause of the problem lies in the inability of private ISPs in Nepal to make payments to Indian vendors for several months. This financial challenge arose as the government has not facilitated the transfer of foreign currency from banks to the private companies for payment.