KATHMANDU: The operating license of telecommunication service provider Ncell Axiata Pvt Ltd is set to expire on August 31.
As the deadline approaches, behind-the-scenes efforts by individuals linked to the company—who failed to renew the license by paying the fixed fee three months prior—are intensifying.
Under the Telecommunication Act of 2053 and the Telecommunication Regulations of 2054, Ncell was required to renew its license by paying the specified fee three months before the license’s expiry.
The law permits renewal with an additional 15 percent fee up until the license expires on August 31.
According to a notice published in the gazette, the mobile service provider is required to pay a renewal fee of NPR 20 billion 13 crore 27 lakh 50 thousand.
However, on May 27, Ncell submitted an application to the Telecommunication Authority requesting license renewal with a total fee of only NPR 4 billion.
On Tuesday, Minister of Information Technology and Communication Gurung, along with officials from the Nepal Telecommunications Authority, discussed the renewal issue and the possibility of installment payments for Ncell.
Santosh Paudel, spokesperson for the Authority, stated that Ncell has requested to pay the renewal fee in five installments.
However, the Telecommunication Act and Regulations do not provide for installment payments for renewal fees.
Sachin Lal Acharya, brother of Shatishlal Acharya—who, through Axiata Group of Malaysia, owns 80 percent of Ncell’s shares—has been lobbying Prime Minister KP Sharma Oli to facilitate the renewal fee and secure uninterrupted ownership of the company.
Sources close to the government reveal that Sachin Lal Acharya has met with Prime Minister Oli twice since Oli’s return to office on behalf of the Nepali Congress-UML coalition.
Acharya approached the Prime Minister after realizing that alternative means to secure installment payments and undivided ownership of Ncell were not viable.
In these meetings, Sachin Lal has reportedly requested that the government allow the renewal fee to be paid in installments and that Ncell’s ownership remain with his brother, Shatishlal, for the next five years.
Previously, Smartcell, owned by various members of the Acharya family, sought installment payment options for its renewal fee under Prime Minister Oli’s administration but failed to pay despite being granted the facility three times.
The Acharya family is now lobbying again with Prime Minister Oli for installment payments and continued ownership.
However, sources indicate that Prime Minister Oli, who previously facilitated installment payments for SmartCell, is now hesitant to make a swift decision on this matter.
Section 33 of the Telecommunications Act, 2053 stipulates that land, buildings, devices, equipment, and structures related to telecommunication services, where more than 50 percent of the total capital investment comes from foreign individuals or organizations, will be transferred to the Government of Nepal upon the expiration of the permit period.
After the transfer, the previous owner may reacquire the assets by paying the purchase price.
Despite this provision, Sachinlal Acharya has been persistently lobbying the government for his brother to retain ownership of Ncell.
According to high-level sources, the previous government’s ministerial meeting resolved not to proceed with Ncell’s license renewal without first addressing the company’s outstanding obligations.
Additionally, a report from an investigation led by former Auditor General Tankamani Sharma Dangal recommended that Ncell’s renewal should not proceed without additional conditions.
Sources close to the matter suggest that due to the Acharya family’s failure to adhere to previous government decisions and recommendations, Prime Minister Oli is unlikely to make an easy decision regarding Ncell’s renewal.
Furthermore, the cabinet’s decision to reject the straightforward acceptance of Ncell’s share transactions has led to delays in processing Ncell’s petition from December, which sought an update on share transactions.
On Sunday, Prithvisubba Gurung, the government spokesperson and Minister of Information and Communication, affirmed that he would not provide installment facilities for the renewal of the telecommunications license, even if it involves taking significant risks.
On Tuesday, Minister of Information Technology and Communication Gurung, along with officials from the Nepal Telecommunications Authority, discussed the renewal issue and the possibility of installment payments for Ncell.
However, a ministry official noted that no official decision was reached, as the issue appeared to exceed the scope of ministerial authority.
The official indicated that discussions are ongoing regarding the appropriate legal process, and suggestions may be presented to the Prime Minister.
However, no formal information has been released as of yet.
Furthermore, the cabinet’s decision to reject the straightforward acceptance of Ncell’s share transactions has led to delays in processing Ncell’s petition from December, which sought an update on share transactions.
An official from the Department of Industry stated that the department is awaiting new government instructions before proceeding.
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