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Ncell required to pay Rs 20 billion for license renewal by mid-May


14 May 2024  

Time taken to read : 2 Minute


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KATHMANDU: Ncell, a leading telecommunications provider, is facing a critical deadline as it needs to renew its license by paying 20 billion rupees before May 18, in accordance with the provisions of the Telecommunications Act.

Ncell’s 20-year license is set to expire on August 31, 2024, necessitating the renewal three months in advance.

Under Section 25 of the Nepal Telecommunications Act 2053, telecom companies operating in Nepal must periodically renew their licenses.

For Ncell, this renewal marks the third time, following renewals at the 10 and 15-year marks.

The negotiation process for Ncell’s previous license renewal in 2061 BS resulted in a payment of 20 billion 13 million 27 thousand 50 rupees.

Consequently, the current renewal requires Ncell to pay 20,130,275,000 rupees, with additional fees possible.

In contrast, Nepal Telecom recently renewed its license, adhering to legal requirements by paying 20 billion rupees and 21 million for the license fee.

Santosh Poudel, spokesperson for the Authority, emphasized the importance of completing Ncell’s renewal process by May 18.

Failure to do so could result in a 15 percent fine if renewed by August 31 or automatic cancellation if the deadline is missed entirely.

The government’s decision, made during a cabinet meeting on February 18, 2024, stipulated that Ncell’s license renewal is contingent upon eventual ownership transfer to the Government of Nepal, with no alteration to the company’s share structure.

Moreover, ongoing legal disputes between Ncell and the Nepal Telecommunication Authority regarding frequencies and taxes may influence the terms of the license renewal, potentially imposing additional conditions on the company.

Also Read:

https://english.khabarhub.com/2024/30/353236/

https://english.khabarhub.com/2024/06/354276/

 

Publish Date : 14 May 2024 10:47 AM

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