Nepal Telecom's profit jumps 48% as it waits for 5G spectrum
The state operator earned Rs 8.86bn last year on modest revenue growth, while its plan for 5G in Kathmandu and Pokhara still depends on the regulator assigning frequencies.
Nepal Telecom, the state-controlled operator, has reported its strongest profit growth in years even as its revenue barely moved. Net profit rose 47.58% to Rs 8.86bn (about $57m) in the 2025/26 fiscal year, according to unaudited results reported by The Himalayan Times in August. The next stage of the business, 5G, has yet to start because the company is still waiting for spectrum.
Profit up, revenue flat
Operating income rose only 3.12% to Rs 34.95bn and total income 2.65% to Rs 39.20bn, The Himalayan Times reported. Pre-tax profit rose 34.66% to Rs 13.26bn and EBITDA 10.73% to Rs 20.48bn. Annualised earnings per share were Rs 49.25.
The company attributed the improvement to higher revenue from core telecom services, particularly GSM mobile services, whose revenue rose by about Rs 645.4m. Interest income moved the other way, falling by Rs 861.9m, or 22.88%, as interest rates declined. Nepal Telecom holds large cash balances, and the slide in deposit rates at Nepal's banks has cut what it earns on them.
A market of two
Nepal Telecom remains the larger of the country's two mobile operators. The Nepal Telecommunications Authority's report for mid-May to mid-June counted 30.31m telephone subscriptions, Himal Press reported. Nepal Telecom had 15.73m GSM subscribers and Ncell 14.1m, giving Nepal Telecom 53.46% of the voice market. In mobile broadband, Nepal Telecom held 55.41% against Ncell's 44.59%.
Broadband subscriptions reached 31.13m, of which 27.62m were mobile. Fixed broadband is a different market: more than 100 internet providers are licensed, but six control about three-quarters of it. WorldLink had 30.82% of fixed broadband, Nepal Telecom 10.97% and DishHome 10.58%, according to Himal Press.
The government also intends to change Nepal Telecom's ownership. The 2026/27 budget included a plan to reduce the state's shareholding to 66%, Himal Press reported.
The 5G question
Nepal Telecom's managing director, Sabina Maskey Pradhan, said the company was working to start 5G in Kathmandu and Pokhara, Nepali Telecom reported in January. The company has requested spectrum from the regulator and plans to begin procuring equipment once it is allocated. An earlier trial was halted.
The Nepal Telecommunications Authority said in June that it had completed preparations for allocating 5G spectrum, The Kathmandu Post reported. Its draft plan, the Mobile Broadband Improvement Plan, sets a long-term goal of nationwide 5G access by 2035, beginning in urban areas, according to Nepali Telecom. Commercial 5G is already available in around 130 countries, including most of South Asia, the Post noted.
Nepal Telecom's first deployment is planned to be selective. It intends to switch on 5G in congested areas such as Basantapur in Kathmandu, where 4G capacity is frequently saturated, with Pokhara following a similar model, Nepali Telecom reported. The company has said it leans towards standalone 5G, which does not depend on the 4G core network.
Coverage of the existing network is close to complete. Nepal Telecom's 4G reaches 98% of local levels and Ncell's about 95%, according to Nepali Telecom.
The price the regulator sets for 5G spectrum, and whether it is auctioned or assigned, will determine how much of last year's profit Nepal Telecom must commit before earning anything from the new network. The first-quarter results for 2026/27 will show whether the fall in interest income continues to offset growth in mobile revenue.
How this story was made: researched and written by The Standard’s desk with AI assistance, from the published reporting and official data credited below, and checked against those sources. Our standards.
