KATHMANDU: Private sector telecom giant Ncell has maintained a strong contribution to government revenue despite a slight decline in business income during the first nine months of the current fiscal year.
According to company data, Ncell contributed Rs 14.59 billion to various government funds through taxes, fees and royalties from Shrawan to Chaitra of fiscal year 2082/83.
During the period, the company recorded total revenue of Rs 24.33 billion, with government payments accounting for 60.81 percent of its total income.
Although Ncell’s revenue declined by 1.05 percent compared to the same period last fiscal year, the company’s contribution to the state treasury remained significant.
The largest payment was made under the GSM licence renewal fee, amounting to Rs 3.29 billion. Other major contributions included Rs 2.12 billion in telecommunications service fees, Rs 1.96 billion in frequency fees, Rs 1.74 billion in value-added tax (VAT), Rs 1.29 billion in royalties and Rs 1.25 billion in advance tax.
The company also paid Rs 1.08 billion in customs duty, Rs 895.4 million in tax deducted at source (TDS), Rs 649.6 million to the Rural Telecommunications Development Fund, Rs 349.8 million in ownership tax and Rs 270,000 for an ISP licence.
According to data from the Nepal Telecommunications Authority up to Baisakh, Ncell has 14.03 million voice service subscribers and 12.21 million mobile broadband users. The number of customers using its 4G service has reached 12.12 million.
5G expansion remains a challenge
Despite its contribution to government revenue, Nepal’s telecommunications sector continues to lag behind neighbouring countries in infrastructure development, experts say.
While countries including India, China, Bangladesh and Afghanistan have already begun testing or commercially launching 5G services, Nepal has yet to make significant progress.
Nepal Telecom has received approval for 5G testing but has not achieved expected progress. Meanwhile, private operator Ncell has sought permission to launch 5G services three times but is still awaiting regulatory approval.
The Ministry of Communication and Information Technology is preparing to move ahead with the auction process for 5G spectrum by determining the base price.
Both Nepal Telecom and Ncell have shown interest in the 2600 MHz band for 5G testing. However, operators remain cautious due to the high cost of spectrum and required infrastructure.
Experts have warned that expanding 5G services across Nepal could require an investment of more than Rs 40 billion at a time when telecom companies are already facing declining revenues.
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