Ncell Breaks Agreement After Classic Tech Fails To Pay Rs 300 Million For Bandwidth, How Will Internet Services Operate Now?

Kathmandu. Ncell has terminated its bandwidth purchase and sale agreement with Classic Tech after the internet service provider failed to clear dues amounting to more than Rs 300 million. The agreement was terminated a few days ago due to non-payment of bandwidth charges.

With the termination of the agreement, Ncell will no longer supply internet bandwidth to Classic Tech. The company, which has not cleared government dues and has been providing internet services illegally without renewing its license, has also failed to pay Ncell for bandwidth for more than a year.

Despite repeated reminders to clear the outstanding amount, Classic Tech continued to ignore the notices. The company lost its network service provider license on 29 March 2024 after failing to pay government dues. However, it continued to provide internet services by purchasing bandwidth from Ncell for nearly two years after the license expired.

The Master Service Agreement between the two companies came into effect on 25 March 2024. The same agreement governing the purchase and sale of bandwidth has now been terminated by Ncell.

“A few days ago, the bandwidth sale agreement with Classic Tech was terminated. Ncell has formally informed Classic Tech of this decision. Following that, bandwidth supply has also been stopped. The outstanding dues have exceeded Rs 300 million,” a source said.

TechPana had earlier published a report on 4 Poush under the headline, “Classic Tech stuck with over Rs 200 million, Ncell unpaid for bandwidth for more than a year.” On 11 Bhadra 2082, Classic Tech’s internet service license also expired. Under the Telecommunications Act, providing internet and telecommunications services without a valid license is illegal.

A few days ago, in response to an email sent by TechPana, Ncell stated that it was continuing to supply bandwidth to Classic Tech, respecting customers’ right to internet access, despite not receiving payment for a year. However, after Classic Tech failed to present any credible basis for clearing the dues worth crores of rupees, Ncell terminated the agreement.

 

 

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