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As the global telecommunications industry accelerates toward 6G and 5G becomes standard in many countries, Nepal is witnessing an unexpected surge in 2G network users, especially in rural areas.

According to data released by the Nepal Telecommunications Authority (NTA), the telecom sector regulator, the number of 2G subscribers in the country more than doubled in the fiscal year 2024/25. Within the period, 2G users increased from 1.46m in mid-July 2024 to over 3.15m in mid-July this year—a jump of more than 1.7m users in just one year.

This rise stands in stark contrast to global trends and highlights the persistent digital divide within the country. While urban populations have largely moved on to faster networks like 4G, rural areas continue to depend heavily on basic 2G connectivity. This is not due to a lack of awareness about advanced technology, but rather to infrastructural limitations and the challenging geography of Nepal’s remote regions, say officials of NTA. 

In many rural areas, newer-generation networks are either unavailable or unreliable. This leaves local people with little choice but to rely on the aging 2G network.

Even as 2G sees renewed growth, Nepal Telecom, the state-owned telecom operator, announced plans to phase out its 2G services on the 1800 MHz band within this fiscal year to repurpose the spectrum for more advanced technologies and push for wider adoption of 4G and 5G.

Private player Ncell has also announced plans to discontinue 2G services in 2027. It plans to shut down 3G this year.

Progress on 5G, however, has been slow. Although NTA permitted Nepal Telcom to start 5G testing five years ago, the state-owned telco has not been able to roll out the service. Officials of Nepal Telecom, however, say that 5G testing will begin later this year with initial launches planned in Kathmandu and other major cities.    

Ncell, another major GSM operator, has temporarily put its 5G rollout plans on hold. CEO Jabbor Kayumov recently indicated that launching 5G is challenging under current conditions, pointing to a steady decline in telecom revenues over the past five years.

The Nepal Stock Exchange (NEPSE) plunged by 38. 40 points to close at 2, 915. 73 points on Thursday.

Similarly, the sensitive index dropped by 7. 68 points to close at 500. 16 points.

A total of 36,871,244-unit shares of 318 companies were traded for Rs 15. 98 billion.

Meanwhile, Trade Tower Limited (TTL) and Nepal Finance Ltd. (NFS) were the top gainers today with their price surging by 9. 99 percent. Likewise, Bhugol Energy Development Company Limited (BEDC) was the top loser as its price fell by 7. 10 percent.

At the end of the day, the total market capitalization stood at Rs 1. 65 trillion.

The price of gold has dropped by Rs 800 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 193, 600 per tola today. It was traded at Rs 194, 400 per tola on Wednesday.

Similarly, the silver is being traded at Rs 2, 270 per tola today.

In the fiscal year 2024-25, the government successfully raised 100 percent of its targeted domestic debt but managed to mobilize only about 57.79 percent of the planned external debt, according to the Public Debt Management Office’s report up to mid-July. The government had set a target of Rs 330bn for domestic borrowing, which was fully achieved. However, out of Rs 217bn targeted for external borrowing, only Rs 125.39bn was raised, falling short by approximately Rs 9.16bn.

Gopikrishna Koirala, head of the Public Debt Management Office, explained that lower capital expenditure and delayed completion of development projects prevented full utilization of external debt. He said the government initially spends from its own resources on annual projects and later seeks reimbursement from lenders, but delays in project completion blocked such reimbursements and external borrowing.

External debt generally carries lower interest rates and longer repayment periods compared to domestic debt, which is often used for operational expenses. Moreover, lenders impose stricter conditions on external loans, requiring them to be focused on capital investment, making external borrowing more effective.

The government’s total public debt mobilization target was Rs 547bn, but only Rs 455.39bn (83.25 percent) was realized during the fiscal year. The total government debt increased by Rs 231.8bn to
Rs 2,669.57bn, equivalent to 43.71 percent of GDP. Of this, external debt accounted for 52.49 percent and domestic debt 47.51 percent.

Outstanding repayments stand at Rs 1,263.45bn for domestic debt and Rs 1,401.35bn for external debt, representing 22.14 percent and 24.56 percent of GDP, respectively. Interest payments on government debt exceeded Rs 400bn during the fiscal year. Rs 362.59bn had been paid by mid-July, reaching 90.01 percent of the annual budget allocation for debt servicing. Interest payment accounts for 5.94 percent of GDP. Specifically, Rs 304.19bn was spent on interest for domestic debt and
Rs 58.40bn for external debt.