NTA issues a Rs. 19 billion payment order to Ncell and threatens to revoke its license if the renewal costs are not paid by September 1.
The second-biggest telecom service provider in Nepal, Ncell, has been ordered by the Nepal Telecommunications Authority (NTA) to pay Rs 19 billion to renew its mobile service license. Ncell received a letter from the NTA requesting payment in full, along with any associated costs and charges related to the license renewal.
Originally, Ncell had to pay Rs 20 billion by May 29th in order to have its license to provide phone services renewed. Nevertheless, the business missed this deadline, incurring further fines of Rs 3 billion. Ncell had asked for an installment payment plan, but had only paid Rs 4 billion—roughly 20% of the total—by the deadline.
The Telecommunications Act stipulates an additional 15% fine for non-compliance, raising the total renewal cost to Rs 23 billion even though the NTA has not yet made a decision on the installment request. After Ncell paid Rs 4 billion, the NTA directed the corporation to pay the remaining Rs 19 billion as soon as possible.
The telecom license issued to Ncell is good until September 1. Up to three months prior to the license expiration, renewals are permitted under the Telecommunications Act. The GSM mobile service license for Ncell was first granted in September 2004. It is due to be renewed every ten years, which is in 2014, every five years in 2019, and every three years, which is by August 31, 2024.
The business had previously paid Rs 20 billion each time to renew its license. However, Ncell has only made an advance payment of Rs 4 billion this time. Ncell needs to pay an additional Rs 3 billion by September 1, 2024, in order to finish the renewal procedure, according to NTA spokeswoman Santosh Paudel.
Ncell has asked for an installment plan, much to the one that Nepal Telecom received, although the NTA has not yet responded to this request. The NTA has advised that in the event that the license is not renewed by September 1st, the license would be automatically canceled.
The government has instructed the NTA to extend Ncell's license for a third term only if the company's assets, property, and ownership are transferred to the government during the next five years, as per a resolution made by the Council of Ministers on March 9, 2024. As a result, Ncell must fulfill these requirements in order for its license to be renewed.
The NTA had already given Ncell instructions on May 17, 2024, to extend its license for a further five years by meeting the necessary requirements and payment.