Ncell halts bandwidth supply to Classic Tech over outstanding payments

Kathmandu – Bandwidth supply to private internet service provider Classic Tech has been suspended by telecom operator Ncell after outstanding payments of around Rs 350 million were not cleared, company officials have said.

The step has been taken after bandwidth charges were not paid for nearly a year, leading to the buildup of substantial arrears. It has been stated by Ncell officials that repeated requests were made for payment clearance, and a one-month deadline was provided with prior notice, warning that bandwidth would be cut if dues were not settled.

“As bandwidth is also purchased by us at a cost and supplied to internet service providers, operational difficulties were created by the mounting arrears,” a senior Ncell official was quoted as saying by New Business Age. It was added that the agreement was terminated and supply was stopped after no response was received within the given deadline.

Legal remedies are said to be in preparation to recover the outstanding amount. Bandwidth is also supplied to multiple companies, including Dish Home, under similar arrangements.

A Master Service Agreement (MSA) had been signed between Ncell and Classic Tech, and it had been brought into effect on March 25, 2024. Classic Tech was formally informed of the termination of the agreement related to the purchase and sale of bandwidth.

The move has been disputed by Classic Tech, with the claim that the agreement was terminated unilaterally while settlement discussions were still ongoing. “We were in talks regarding the settlement,” a Classic Tech official was quoted as saying, while the termination at that stage was described as inappropriate. The delay in payment was said to have been caused by a broader economic slowdown, which has also affected internet service providers.

Despite the suspension, service disruption has been denied by Classic Tech, as alternative bandwidth sources were said to have been arranged immediately. “Service continuity has not been affected,” a senior official was quoted as saying. Bandwidth sourcing through Dish Home is said to have been initiated, according to company sources.

Fiber-optic internet services are provided by Classic Tech using FTTH technology, and the company is ranked among Nepal’s major internet service providers. According to Nepal Telecommunications Authority (NTA) data as of mid-December 2025, 268,000 subscribers have been recorded, accounting for 7.98% of the country’s fixed broadband market, placing the company fifth nationwide in market share.

Meanwhile, a turnover of Rs 921 million was recorded by Classic Tech in fiscal year 2023/24, which was reported to be 3.15% lower than Rs 951 million in 2022/23, according to Care Ratings Nepal. Revenues of Rs 872 million had been posted in fiscal year 2021/22.