KATHMANDU: Ncell Axiata Limited has submitted a detailed letter to the Prime Minister, highlighting policy inconsistencies and uncertainty in Nepal’s telecommunications sector.
The company highlighted its 21 years of service, tax contributions, employment generation, and role in the Digital Nepal campaign, while raising concerns that certain government decisions and regulatory amendments are unjust, unequal, and contrary to the spirit of the law.
The letter alleges that while competitor Nepal Telecom was allowed license renewal without interest, Ncell was compelled to pay a 10 percent interest installment. In addition, restrictions on share ownership transfer were claimed to undermine investors’ property rights.
Ncell outlined 16 major points in the letter: it highlighted its long-term contributions to national development through telecom services, employment, corporate social responsibility, and support for health, education, disaster preparedness, and sports sponsorships. The company also described itself as a successful model of foreign investment, contributing to technology transfer, knowledge sharing, and improved service quality.
The letter stressed that uninterrupted telecom services are essential for citizens’ constitutional right to information and communication, as banking, digital payments, government services, and emergency notifications depend on these services. Ncell reaffirmed its commitment as a responsible corporate citizen to invest in technology, expand rural networks, and collaborate in the Digital Nepal initiative.
Ncell also raised concerns over the declining contribution of the telecom sector to GDP, high taxes, increasing OTT services, costly frequency fees, and regulatory uncertainties affecting profitability and long-term investment capacity. It requested the government to review cabinet decisions related to license renewal, noting that some procedural requirements, such as prior approval for share transfers, were practically impossible to fulfill due to foreign legal obligations.
The company underscored the principle of equal treatment for foreign investment, noting that discriminatory practices compared to Nepal Telecom, including interest and regulatory conditions, place substantial financial burdens on Ncell. It urged the government to revise these conditions, ensure policy consistency, and maintain investor confidence.
Finally, Ncell reiterated its commitment to uninterrupted service, investing in new technology, increasing Nepali ownership through IPOs, and supporting the Digital Nepal campaign, warning that a favorable policy environment is crucial for sustained investment, employment, and service continuity.
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