Nepal’s social media ban strains ISPs as users turn to VPNs; Internet traffic data reveals heavy reliance

KATHMANDU: Nepal’s sweeping ban on unregistered social media platforms has triggered immediate concerns among internet service providers (ISPs), businesses, and ordinary users, with new data underscoring just how deeply social media dominates the country’s online ecosystem.

According to industry estimates, Nepal’s international internet traffic currently averages 2 terabits per second (Tbps), but social media alone accounts for nearly 10 Tbps—five times higher than the total international bandwidth. This imbalance highlights the extraordinary reliance of Nepali users on platforms such as Facebook, Instagram, YouTube, WhatsApp, and TikTok, many of which now face restrictions under the government’s new registration policy.

The sudden ban, effective from midnight today, is expected to disrupt communication, content sharing, e-commerce, and entertainment across the country. Users are already turning to virtual private networks (VPNs) to bypass the restrictions, but experts warn that this comes with risks to data privacy, security, and user experience.

ISPs Fear Major Revenue Loss

Sudheer Parajuli, President of the Internet Service Providers’ Association of Nepal (ISPAN), confirmed that ISPs are under intense pressure to comply with the government’s directive.

“We are almost ready to follow the government’s order, but the shutdown of social media platforms will cause serious revenue losses to ISPs,” Parajuli said.

Social media platforms generate massive volumes of data consumption in Nepal. Platforms like YouTube, Facebook, and TikTok account for the majority of streaming and video bandwidth, while WhatsApp and Messenger are essential for daily communication. ISPs, who pay international carriers for bandwidth, say the shift will not only reduce traffic volumes but also disrupt customer satisfaction and value-added services.

Parajuli stressed, however, that the government’s move is rooted in accountability:

“The government needs to govern social media and make them accountable for their presence here in Nepal. They must register and follow Nepal’s laws if they wish to operate.”

VPN Surge Raises Security Concerns

In the wake of the ban, early indicators suggest that thousands of users are installing and using VPN applications to access blocked platforms. While VPNs provide temporary access, they reroute data through foreign servers, exposing Nepali users to possible data theft, phishing, and malware attacks.

Digital rights experts have also raised alarms that increased VPN usage could undermine Nepal’s ability to monitor cybercrime, online fraud, and misinformation. ISPs warn that mass VPN adoption could further complicate network management, slow down services, and erode user trust in the domestic internet ecosystem.

Broader Economic and Social Impact

The ban’s impact stretches beyond ISPs and users. Small businesses, startups, digital advertisers, influencers, and content creators who rely on platforms such as Facebook, Instagram, and YouTube are expected to suffer immediate setbacks. With social media accounting for the bulk of digital marketing in Nepal, the restriction could limit consumer outreach and hurt the digital economy.

Internationally, the ban also sends a signal to global tech giants. Nepal is demanding that platforms establish local accountability through registration, in line with a global trend where governments seek more control over digital ecosystems.

For now, ISPs brace for losses, businesses face uncertainty, and users experiment with VPNs. Whether social media giants comply with Nepal’s rules or risk being shut out of one of South Asia’s fastest-growing digital markets remains to be seen.