KATHMANDU: With only four days remaining before the expiration of Ncell Axiata Pvt Ltd’s operating license, the company’s future is in flux.
Ncell, embroiled in controversy, has refused to renew its license unless granted installment payments for the renewal fee.
In light of previous disputes, Prime Minister KP Oli has given Information and Communication Technology Minister Prithvi Subba Gurung discretionary powers to handle the situation with Ncell.
The decision regarding Ncell’s future, which is surrounded by controversy and involves demands for installment payments not covered by current regulations, now lies with Minister Gurung.
Ncell’s current five-year license, part of its 25-year service agreement, will expire on August 31.
According to a notice published in the Nepal Gazette, Ncell must pay an additional NPR 20 billion over the amount initially required for renewal.
Under the Telecommunication Act 2053 and Telecommunication Regulations 2054, the license should have been renewed by paying the required fee, which Ncell failed to do.
If Ncell fails to pay the specified fee within the next four days, or if the government does not approve the requested installment facility, Ncell’s license will be automatically revoked.
However, the company can still renew its license with an additional 15 percent late fee by August 31, with only five days remaining to meet this deadline.
Despite this, Ncell representatives are petitioning the Telecommunication Authority, the Ministry of Communications, and the Prime Minister’s Office for installment payments, rather than adhering to the legal requirements.
Ncell has requested to pay the renewal fee in five installments.
Due to the absence of legal provisions for such arrangements, the Authority has been unable to act.
Following this, Satish Lal Acharya, a Singaporean who purchased Ncell shares from Axiata Group last December, has appointed his brother Sachin Lal Acharya to manage the company.
Acharya has met Prime Minister Oli twice to discuss installment options and future ownership of Ncell.
Sources indicate that Acharya requested the Prime Minister to allow installment payments and to keep Ncell under his brother’s ownership after five years.
Although Prime Minister Oli had previously decided to offer installment facilities to Smart Telecom Limited, another Acharya family-owned company, this decision was not implemented.
Minister Gurung’s response to the Prime Minister’s request has been to follow the standard review process and avoid unnecessary interference.
The Prime Minister, in turn, chose not to accept Acharya’s request and assigned Minister Gurung the responsibility to use his discretion regarding Ncell.
What will Minister Gurung decide?
Two weeks ago, Minister Gurung criticized Ncell and stated that installment payments for the renewal fee are not feasible.
He argued that such arrangements are unconventional and could lead to corruption, emphasizing the need for systemic reform.
Recently, the Nepal Telecommunication Authority informed the Ministry about Ncell’s request for installment payments, which had been previously granted by the government.
Minister Gurung has been advised to ensure that Ncell continues to make annual payments with a bank guarantee and meets its obligations.
Minister Gurung aims to ensure that Ncell will be under government ownership after five years, given its significant obligations, including the renewal fee.
The report from the inquiry committee led by former Auditor General Tankamani Sharma recommended that Ncell’s license should not be renewed as-is but with additional conditions.
Although the Council of Ministers had previously considered installment options for Ncell, spokesperson Santosh Paudel confirmed that no formal recommendation has been submitted to the Ministry.
Currently, no formal decision has been made regarding Ncell.
When asked for a formal opinion on the matter, Minister Gurung declined to provide one.
With Prime Minister Oli stepping back from the decision, Minister Gurung’s forthcoming decision will shape the future of Ncell, which serves over 1.5 million customers and holds substantial assets and liabilities.
If Ncell fails to pay the specified fee within the next four days, or if the government does not approve the requested installment facility, Ncell’s license will be automatically revoked.
As a result, the process to transfer the company’s ownership to the Government of Nepal will begin.
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