Chaos erupted on Thursday evening as internet services nationwide were abruptly interrupted for several hours due to Airtel, a major Indian telecommunications company, cutting upstream services to Nepali private-sector ISPs over unpaid dues. The disruption started at around 5 pm but services were restored after five hours following negotiations with the Nepal Telecommunications Authority. Despite the payment issues, internet services by the state-owned Nepal Telecom were not affected, mainly impacting fixed broadband users.
The dispute between Nepali ISPs and the government over taxes has been ongoing, with the ISPs claiming exemption from taxes on non-telecom services. The conflict arose from policy changes by the government regarding tax obligations for ISPs. The issue has left Nepali ISPs owing Airtel over $30 million, with threats of service interruptions looming.
The Public Accounts Committee of the previous parliament had ruled in favor of exempting ISPs from certain taxes, which the Ministry of Communication and Information Technology rejected. The situation has escalated with Indian upstream service providers seeking bank guarantee letters due to payment challenges faced by Nepali ISPs.
The uncertainty surrounding the payment of tax dues has created a communication crisis, affecting millions of internet users in Nepal. The ISPs play a significant role in providing employment opportunities, with over 15,000 people directly employed in the industry. The situation remains unresolved, leaving both the ISPs and the government at odds over financial obligations, as foreign exchange issues persist.
The internet has revolutionized our way of life in the past few decades, with recent advancements including mobile internet, broadband services, and now satellite internet. In India, internet adoption has been rapid, from the days of BSNL and MTNL to the dominance of private players like Reliance Jio, Vodafone Idea, Airtel. These companies have also entered the broadband market, once ruled by local providers. The next big disruption is Elon Musk's Starlink and satellite internet access, offering high-speed internet via communication satellites. While satellite services are not new in India, the scale and ambition of Starlink are unprecedented. Competition from Indian players like Airtel and Reliance further intensifies the race. Starlink, available in many countries, including North America and Europe, is also poised to enter the Indian market. Regulatory hurdles, establishment viability, and pricing will be key factors in the success of satellite internet services in India.
V Dhanalakshmi, a PhD student in Chennai, was facing fear and confusion due to flood, power disruption, and a weak mobile network. She was struggling to find a steady network on the terrace of her flooded house, worried about seeking help or contacting rescue teams. Cyclone Michaung hit Andhra Pradesh, causing chaos in Chennai with torrential rain and telecom services being affected due to power outages and transportation challenges. Telecom operators like Reliance Jio and Vodafone Idea were working to restore services amid the crisis caused by the cyclone. Despite challenges, efforts were being made to bring back normalcy by activating network sites and providing relief to the affected areas. Chief Minister M K Stalin assured that measures were being taken to reduce the impact of the rain and restore normalcy in the city. Relief camps were set up, and relief efforts were underway to help those affected by the severe cyclonic storm.
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