It is reported that there is no obligation for passive infrastructure sharing in Nepal to deliver telecom services to end users. However, passive infrastructure sharing is practised in both the mobile and fixed sectors based on commercial agreements.
It is further reported that the relevant legal framework is set out in the Telecommunications Infrastructure Sharing and Fee Determination Bylaw, 2078, and the Infrastructure Sharing Guideline, 2072. However, English versions of these instruments are not publicly available.

It is reported that Nepal imposes an identity requirement for SIM registration. Anyone wanting to purchase a SIM card has to provide their national ID card or a passport in case of foreigners to activate a new prepaid SIM card.

According to Section 5.6.2 of the Telecommunication Policy Act, foreign ownership in the telecommunications sector is subject to a maximum equity limit of 80%.

The government owns shares in some telecommunications companies. In particular, Nepal Telecom (NTC), or Nepal Doorsanchar Company Limited (NDCL), the incumbent telecommunications operator, is a state-owned company with approximately 92% state shareholding.

Nepal does not mandate functional separation for operators with significant market power (SMP) in the telecom market. However, there is an obligation of accounting separation. According to Section 5.4 of the Guideline for tariff Approval for Telecommunications Services, all licensees are required to establish and maintain separate accounts for each service specified in the license.

Under Section 33 of Nepal’s Telecommunications Act, 2053 (1997), where telecommunications-related land, buildings, plant, equipment, or other facilities have been developed with more than 50% foreign investment, ownership of those assets transfers to the Government upon expiry of the licence period. Under Section 33(2), the former licensee may repurchase the assets at a price fixed by the Government and, upon obtaining a new licence, continue operating the telecommunications service.

Nepal has not appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.

It is reported that the Nepal Telecommunications Authority (NTA), the executive authority for the supervision and administration of services in the telecommunications sector, is independent from the government in the decision-making process.

Section 9.4 of the IoT/M2M Regulatory Framework stipulates that personally‑indefinable information (that is, data that cannot be used to identify a specific individual) must be stored exclusively within Nepal. Moreover, at least one copy of all relevant data must be stored within Nepal. However, the provision does not specify what 'relevant data' is. Furthermore, the same provision encourages 'complete data localisation', which is also not clarified.

Pursuant to Rule 7A of the National Broadcasting Regulation, licensed over-the-top (OTT) operators offering services to customers or generating revenue within Nepal are obligated to establish a cache server in Nepal. These operators are required to register customers on a server located in Nepal before granting access to their content and must retain detailed customer information. Additionally, all transaction records must be securely stored on a Customer Management System Server. However, the regulation does not clearly define the term "Customer Management System Server" or specify whether such a server must be physically situated within Nepal and directly managed by the OTT service providers. The regulation defines OTT as the broadcasting of content on demand via the internet, encompassing media streaming services delivered through various platforms utilising internet connectivity

Section 3.7 of the "Data Center and Cloud Service (Operation and Management) Directives, 2081 (2025)" provides that, in the context of government data centres and cloud service provision, the security agencies of the government of Nepal are mandatorily required to use data centre and cloud services operated by the Integrated Data Management Center. According to its official website, the Integrated Data Management Centre operates under the Department of Information Technology and serves as the government of Nepal's implementing agency. Furthermore, Section 3.9 stipulates that, upon the commencement of the Directives, government bodies operating data centres and cloud services on a departmental or agency basis shall transfer such facilities to the government data centre within the timeframe specified by the steering committee; however, where a government body submits a request, supported by sufficient justification, to operate a primary or secondary site, the steering committee may grant consent for the operation of such a site based on its suitability.

Section 12.4 of the Privacy Act requires the consent of the data subject for the disclosing, making public, or transferring of the following data: details relating to a medical examination; details relating to property and income; further information relating to employment; details relating to family matters; biometric data and fingerprints; signatures or electronic signatures; further information concerning the political affiliation and voting; and further information about profession and business. The term 'transfer' may signify the transfer of personal data outside Nepal, thereby requiring specific consent from the individual. However, there is no clear evidence about the applicability of this requirement to cross-border data transfers.

Nepal has a clear regime of copyright exceptions that follows the fair use model, which enables the lawful use of copyrighted work by others without obtaining permission. Art. 17 of the Copyright Act explicitly adopts the fair use model, allowing limited portions of a published work to be cited without the author's or copyright holder's authorisation, provided such use does not prejudice their economic rights. In such cases, the source and author’s name (if indicated) must be appropriately credited. Arts. 18–23 of the Copyright Act outline additional exceptions, including reproduction for personal use, educational purposes, or use by libraries and archives, as well as reproduction, broadcasting, or communication of works for public information purposes, among others.

It is reported that protecting intellectual property rights remains a significant challenge in Nepal, as existing laws and regulations are outdated and ineffective, and enforcement is inconsistent. This situation is further compounded by difficulties in preventing the sale of digital media.