Kathmandu- WorldLink Communications, Nepal's largest internet service provider, has come under regulatory scrutiny after suspicions arose regarding its cross-border payments.  

The Nepal Telecommunications Authority (NTA) has requested detailed records of WorldLink's previous bandwidth transactions after the company approached the regulator seeking approval for foreign currency payments. WorldLink had recently cleared its outstanding revenue arrears in a single payment, anticipating a smooth recommendation.  

However, the Ministry of Communications and Information Technology had already pointed out the company's unusual and suspicious transactions over the past few years. A prior study by the ministry uncovered irregularities, prompting directives to proceed only after obtaining further clarifications.  

The NTA has asked WorldLink to disclose the details of its transactions with the Hong Kong-based company, from which it purchases bandwidth. Unlike other Nepali ISPs that source bandwidth through subsidiaries of Indian companies in Singapore, WorldLink’s arrangement with  independent company unaffiliated with Indian or Chinese providers—has raised questions about its legitimacy.  

Concerns Overinvoicing and Capital Flight

The NTA has also expressed concerns about alleged overbilling, tax evasion, and potential capital flight linked to WorldLink's inflated bandwidth costs. The government-owned Nepal Telecom, for example, procures bandwidth at an average of $1.6 per Mbps/month, while most ISPs purchase below $2. In contrast, WorldLink has reportedly been paying $3.3 per Mbps/month, despite dealing in higher volumes. Although its recent bills have shown reduced pricing, suspicions of past overbilling persist.
 
The government suspects WorldLink may have established intermediary companies to inflate invoices and channel funds out of Nepal. Until these concerns are addressed, the NTA is unlikely to approve the company’s foreign currency transactions.  

Further Investigation Underway
 
The NTA is currently focused on screening rather than launching a formal internal investigation. A senior NTA official seeking anonymity stated, 'We are simply asking for clarity on the company receiving the foreign currency payments. What kind of entity based on Hong Kong? Was it established solely to do business with WorldLink? If not, what other activities does it engage in?”  

Nepal has strict regulations to prevent arbitrary foreign currency payments for goods and services. Approvals and recommendations are required at multiple levels to ensure compliance. The NTA is leveraging these legal provisions to monitor WorldLink’s transactions before making a decision.  

WorldLink’s arrangement with deviates from industry norms, where most Nepali ISPs procure bandwidth via agreements with Tata Communications PTE or similar firms in Singapore. This difference, coupled with questions surrounding tha Hong Kong based company’ role, has fueled further scrutiny of WorldLink's transactions dating back to 2015.  

The matter has also drawn attention due to the involvement of Bhupendra Bhandari, the current NTA chairman, who was recommended by former Communications Minister Rekha Sharma. Sharma had previously raised concerns about the irregularities in WorldLink’s practices.  

Until suspicions of capital flight, tax evasion, and irregular network arrangements are resolved, the NTA has made it clear that WorldLink will not receive the necessary recommendations for its foreign currency.