KATHMANDU: The entire country experienced a communication breakdown on Thursday evening when internet services abruptly halted for several hours. This crisis unfolded after the Indian telecommunications giant Airtel suspended upstream services to Nepali private-sector internet service providers (ISPs) due to non-payment of dues, plunging Nepal into a state of chaos.

Sudhir Parajuli, chairman of the president of Internet Service Providers' Association Nepal, confirmed Airtel's cessation of services, which commenced around 5 pm local time. However, after approximately five hours, services were eventually restored following negotiations between the Nepal Telecommunications Authority and Airtel, wherein the latter agreed to reinstate services upon resolution of the payment issue.

WorldLink Communications Pvt Ltd, a major private sector ISP, issued an apology for the inconvenience caused by the bandwidth issue, assuring customers of efforts to restore services promptly. Airtel's ultimatum to Nepali ISPs to settle outstanding dues or face service disruptions had been preceded by multiple verbal warnings and written notices.

The longstanding dispute between Nepali ISPs and the government over taxes has been a recurring issue, leading to the current impasse. Despite assurances from previous parliamentary committees exempting ISPs from certain taxes, the government later reversed its stance, demanding tax payments. This policy instability has exacerbated tensions, resulting in delayed payments to foreign vendors and, consequently, disruptions in internet services.