NT moves to end automatic balance deduction as data runs out, Rolls out service reforms

KATHMANDU: In a significant shift aimed at addressing long-standing consumer complaints, Nepal Telecom has initiated a series of service reforms, including a key change that will stop automatic deduction of users’ main balance once mobile data packages are exhausted.

The reform push follows direct instructions from Communications and Information Technology Minister Dr. Bikram Timsina, as the government intensifies efforts to improve service quality across Nepal’s telecommunications sector.

End of Automatic Charges, More User Control

For years, customers had raised concerns that once their subscribed data package ran out, charges were automatically deducted from their primary balance without clear consent. Under the new system, this practice will be discontinued.

Instead, users will receive a pre-alert when 90% of their data is consumed, enabling better usage tracking and cost control. Customers will then be given clear options to either:

• Purchase a new data package, or
• Opt for a Pay-As-You-Go (PAYG) model, allowing internet usage without a package, with transparent billing

This change is expected to significantly improve billing transparency and user autonomy in Nepal’s mobile data ecosystem.

According to company spokesperson Rabindra Manandhar, the system is currently in the testing phase. It will be fully rolled out within days:

• USSD-based data users: within 3–5 days
• Mobile app users: within 7–10 days

Broader Reform Agenda in Telecom Sector

The move is part of a broader 10-point reform action plan introduced by the Ministry of Communications, aimed at implementing a results-based governance system across public service providers.

Key focus areas include:

• Enhancing customer service responsiveness
• Simplifying administrative procedures
• Expanding digital service delivery
• Improving transparency and accountability

The telecom sector has faced persistent criticism over service disruptions, delayed complaint handling, and bureaucratic inefficiencies—issues the government now seeks to directly address.

One-Time KYC and Full Digital Services Push

As part of the reform package, the ministry has also directed the implementation of a “One-Time KYC” system. Once customers submit their identification details, they will not be required to repeatedly provide documents for SIM-related services, renewals, or upgrades.

The company aims to implement this system within 30 days, potentially eliminating one of the most common pain points in customer onboarding and service access.

In parallel, Nepal Telecom is accelerating its digital transformation strategy. Several services will soon be fully available online, including:

• eSIM distribution
• Complaint registration and tracking
• SIM recovery (for lost cards)
• Ownership transfer

These services are expected to particularly benefit users in remote areas by reducing the need for physical visits to telecom offices.

Single-Window Service and Network Quality Upgrade

To streamline service delivery, the government also plans to establish single-window customer service desks across all Nepal Telecom offices. This will allow users to resolve multiple issues at one point, reducing processing time and administrative friction.

Meanwhile, efforts are underway to improve the quality of 4G mobile network services, which have drawn widespread complaints in various parts of the country. The ministry has indicated that policy adjustments and additional frequency allocation are being prepared to strengthen network performance.

Authorities aim to complete necessary policy reforms within the next 30 days, signaling a time-bound push to restore consumer confidence in Nepal’s telecom infrastructure.

The reforms mark one of the most comprehensive service overhauls in recent years, as Nepal’s state-owned telecom operator attempts to modernize operations and respond to growing digital demand.