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.
