Kathmandu, Aug 29: Ncell’s reluctance to pay the renewal fees of Rs 19 billion at once has resulted in the risk of the cancellation of its licence. As the private mobile service provider has proposed the payment in installment, the government has not taken any decision on it. Its licence is expiring on September 1, 2024.
Ncell was originally required to pay Rs 20 billion by May 29 to renew its licence. However, it could not make the payment within the deadline, leading to an additional Rs 3 billion in fines. Ncell had only paid Rs 4 billion within the deadline.
On August 22, 2024, the Nepal Telecommunications Authority (NTA), the regulator of the telecommunications sector, informed the Ministry of Communications and Information Technology through a letter about Ncell’s request for installment facility.
Ncell had requested the payment in installment before three months of the expiry date. But the NTA said that providing the facility depends on a Cabinet decision. There is a provision that the Council of Ministers can direct the authority to provide installment facilities.
Earlier, the Cabinet had given installment facility to Ncell during the first and second renewal.
Since Ncell’s activities are controversial in Nepal, voices have mounted that private companies should not be given any kind of discount by affecting the government revenue. Earlier, Ncell was embroiled into a share transaction scam. Following this, the government formed a committee to investigate the matter.
According to the Telecommunications Act, the ownership of the land, buildings, devices, equipment and structures of telecommunications service providers with more than 50 percent foreign investment will be retained by the government after the 25-year licence period expires. In breach of the provision, Ncell reportedly sold shares and transferred them to the name of Nepali investors.
The question has been raised whether or not the government will make Ncell pay the amount of late fee and interest if it is given the installment facility. If the Council of Ministers decides not to charge late fees and interest, the government will incur a revenue loss of around Rs 13 billion.
According to section 33 of the Telecommunications Act 2053, after all the assets of Ncell will belong to the government after five years.
Today’s Cabinet meeting may take a decision on the renewal of Ncell’s licence, said a Ministry source.
