KATHMANDU: With just six days remaining before the expiration of Ncell’s telecommunication service operation license, the Nepal Telecommunication Authority (NTA) has issued “urgent correspondence” to both the concerned ministry and Ncell Axiata Limited.
Despite several reminders, Ncell has yet to renew its license by paying the prescribed fee.
In response, the NTA has reached out to the Ministry of Information Technology and Communication to inform them of the situation.
Additionally, the NTA has urged Ncell to complete the renewal process by submitting the fee on time.
According to Santosh Paudel, Spokesperson for the NTA, Ncell has requested an installment facility for the renewal after making a partial payment.
However, given the imminent expiration of the license and the lack of progress in the renewal process, the NTA has sought the ministry’s assistance in resolving the matter.
Paudel clarified that the NTA does not have the authority to grant installment facilities, though the Nepalese government had previously extended such accommodations on two occasions.
“We have repeatedly asked Ncell to pay the renewal fee in full, but the company has insisted on an installment plan. Since the NTA lacks the authority to approve such requests and time is running out, we have informed the ministry accordingly,” Paudel stated.
Ncell’s situation, which has been contentious due to issues such as share transactions and frequency allocation, is currently under scrutiny by a government-appointed research committee.
While Ncell has requested a renewal fee concession, it has not addressed other financial obligations, such as taxes and state fees.
Although the NTA has outlined the renewal fee in previous communications, it has not provided specific recommendations to the ministry regarding any legal or financial modifications.
Paudel told Khabarhub that the NTA has also directly requested Ncell to pay the remaining renewal fee and complete the renewal process.
Under the Telecommunication Act of 2053 and the Telecommunication Regulations of 2054, Ncell’s service operation license is set to expire on August 31.
According to a notice published in the Nepal Gazette in 2069 BS, Ncell was required to pay NPR 20.13 billion for the license renewal by May last year.
To date, Ncell has paid only NPR 4 billion. The company must now pay an additional 15 percent fee on top of the original amount by August 31.
Failure to comply with these requirements will result in the cancellation of Ncell’s license.
Should the company miss the deadline, it could face state takeover, similar to the fate of Smartcell in the past, Poudel stated.
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