NTA renewed Nepal Telecom GSM License for free

Government of Nepal, Ministry of Information and communication, have directed the Nepal Telecommunication Authority(NTA) to renew the GSM license of Nepal Telecom Corporation for free on Jestha 16. With this intention, meetings held by NTA management team on Shrawn-2 2076, have formally renewed the license of NT for free without making decision of renewal cost.

Before 5 years also, due to dilemma in fixing renewal cost, Nepal Telecom have been issued the renewal license for free without any cost. On Jestha 16 2076 BS, ministry of information and communication have issued a written letter to NTA to renew NT license for 3rd tenure after paying first installment out of 5 of 20 Arab of second tenure. This 20 arab is the renewal fee which need to be paid in every 5 years by telecom operator. Indeed, this renewal amount was for the first tenure in 2066-2071 BS. For second and third tenure, renewal amount was not fixed.

According to NTA chairperson Purshottam Khanal, this decision was made as direction by the ministry of information and communication. NTA on Chaitra 3, 2075 have made decision that Nepal Telecom need to pay Rs 20 Arab as the second renewal fee. However, NT appealed that it cannot pay that huge amount at once and needs flexibility in payment. Making this consideration, NT was granted and allowed to pay in 5 installment. But on the prior of 3rd renewal date, NT haven’t paid the second installment of second renewal tenure. For second tenure(2071-2076 B.S), NT have paid the first installment only. From Baisakh of 2076 BS, Nepal Telecom must renew its GSM license for third tenure(2076-2081 B.S).

Also read: Nepal Telecom have successfully tested VoLTE for first time in Nepal.

According to NTA rules, telecom operators must pay the renewal charge in every 5 years after 10 years of operating license. Nepal Telecom obtained GSM license for first time in 2056 BS. It’s 10 years ended in 2066 B.S. From 2066, NT should pay renewal charge in every 5 years and now it’s the third tenure. Telecom operators must apply for license renew before 3 months ahead. So for this, NT have applied for third renew by paying 21 crore in Magh 2075 as it’s license will be expiring on Baisakh 2076.

This decision made by Nepal Government in favor to it’s state owned corporation is likely to create inequalities among other telecom operators. As equally important, telecom field is considered to be the most profit companies and government could yield high tax in return from them. However, such steps against rules and regulation will create unfair and demotivate private companies to invest in telecom field. Ncell on the other hand, is not paying the profit tax. Also, CG telecom and Huawei have done agreement for BTS establishment.