Digital Rights Weekly/Year 2/Issue 51

Year 2023 in Retrospect From The Digital Rights Lens
In the dynamic digital landscape of Nepal in 2023, a complex tapestry of progress and controversies has unfolded, placing digital rights at the forefront of the national discourse. On a positive note, the government has exhibited a resolute commitment to shaping policies and laws governing information technology services. A significant milestone is the endorsement of the National Cybersecurity Policy, 2023, marking the country’s inaugural cybersecurity policy. This move underscores the government’s proactive approach, further demonstrated by the implementation of various policies and regulations, such as the Radio Frequency (Allocation and Pricing) Policy, 2080, Information Technology Usage Policy, 2080, Telecom Service Quality By-laws, 2079, and the Directives for Managing the Use of Social Networks, 2023.
A noteworthy stride is the ongoing progress on the E-commerce bill in the parliament, complemented by the government’s active engagement in drafting bills on Information Technology, Social Media Regulation, E-governance, and revamping the Digital Nepal Framework. An additional noteworthy initiative is the conceptualization of a framework for Artificial Intelligence, demonstrating a forward-looking stance.
Emphasizing the importance of infrastructure development, the government has allocated a specific budget for a Cybersecurity Center within the Ministry of Communication, Information, and Technology (MoCIT). The recently published Census Report 2021 reveals that 73.2% of the Nepali population owns mobile phones, showcasing varying percentages across provinces. In pursuit of enhancing service delivery and promoting e-governance, the Nepal Telecommunication Authority (NTA) has implemented the broadband project, extending services to 16,208 locations. A pivotal development is the grant of jurisdiction to all District Courts to handle cybercrime cases, aligning with efforts to address digital security challenges at the local level.
However, the digital rights landscape is not immune to setbacks. The year began with a clash between Internet Service Providers (ISPs) and the Nepal Electricity Authority (NEA) over utility pole rentals, resulting in internet disruptions due to fiber cable cuts. Notably, certain government policies, such as the National Cybersecurity Policy and the Directives for Managing the Use of Social Networks, 2023, have raised concerns about the government’s inclination toward controlling cyberspace. Provisions like the National Internet Gateway and the overbroad “Not-to-Do List” emphasize regulatory measures, potentially impacting user freedoms.
Cybersecurity incidents, including the DDOS attack at the Government Integrated Data Center (GIDC), loss of applicants’ data at Public Service Commission, hacking of the Prime Minister’s Office Twitter handle, underscore the urgency for robust cybersecurity and data privacy measures. The ban on TikTok, claimed by the government for the preservation of “social harmony,” faced opposition, triggering legal challenges and sparking broader debates about internet governance and state control.
Implementation hurdles were encountered in the Mobile Device Management System (MDMS), under investigation for alleged corruption. Similarly, the Telecommunication Traffic Monitoring and Fraud Control System (TERAMOCS) faced controversies regarding its legal basis, privacy concerns, and alleged corruption.
Corruption cases against high-ranking officials in the National Payment Gateway scam led to legal action by the Commission for the Investigation of Abuse of Authority (CIAA). The sale of Axiata’s stake prompted investigations and legal actions involving parliamentary committees, a high-level committee, and the telecom regulatory agency NTA, with judicial intervention underway.
Nepal’s global rankings present a mixed picture, with commendable achievements in broadband affordability and internet quality but challenges in overall digital quality of life, e-government services, and AI preparedness.

As the year concludes, the looming risk of internet disruption in Nepal due to halted payments for bandwidth poses significant challenges to internet service providers. Warning letters from upstream providers threatening service interruptions starting December 31 highlight the critical need for a swift resolution to the prolonged non-payment issue. Addressing these challenges will be crucial for ensuring a resilient and thriving digital ecosystem in Nepal in the coming year.