Sep 28, 2013

NTA asks telcos, ISPs to revise promotions

KATHMANDU, SEP 28 -The Nepal Telecommunications Authority ( NTA ) has instructed the telecom operators and internet service providers (ISP) to stop implementing promotional schemes beyond three months. The telecom regulator said the move was taken in order to discourage possible unhealthy competition.  The telecom sector regulator had earlier restricted telecom companies and ISPs from launching lucky draw based promotional offers two weeks ago.

The NTA also made it mandatory for the companies to introduce schemes that would cover all the subscribers of their service, after a few companies introduced schemes that benefited only a certain category of customers.The regulator’s directive has come at the time when the companies are introducing schemes targeting the festivals. The instructions have affected Ncell, Smart Tel and Subisu Cable Net the most among others.

The Smart Telecom had been providing an offer whereby customers purchasing a SIM card and credit worth Rs 100 previously received a talk time value of Rs 1,000, according to the NTA . “These types of offers the companies had been providing do not promote fair competition,” said Arjun Ghimire, deputy director at the NTA . He said that if the companies are found running any schemes without approval, they would take action.


Immediately after the direction of the authority, the Susbisu Cable Net has revised its Dashain focused schemes, making it applicable to all markets including Kathmandu, according to the NTA . On Wednesday, the company had launched ´Subisu 111 Free Internet Dashain Offer´ under which subscriber gets additional 111 days for the advance payment of a one-year package, targeting customers in the Kathmandu valley.

Earlier, Ncell had discontinued its three lottery-based schemes, like Ncell Nagadma Gadgad, after the NTA ’s instruction. Recent moves by the regulator regarding the schemes have also halted a number of proposed schemes at the NTA . Normally, the authority gives approval for schemes to run for a three month period, as per licence conditions.

Citing a trend of offers that fuel unhealthy competition in market, the NTA is also preparing guidelines regarding promotional schemes, based on international practices and the regulatory mechanisms of other government bodies.

“It will be a clear rule for companies to facilitate them in introducing offers,” said Kailash Prasad Neupane, spokesperson of the NTA .

A committee under Ghimire has been formed to prepare the guideline.

The directive would help discourage service providers from luring customers to spend more on their services, while appealing with companies to focus on quality service and tariff instead, according to the NTA .

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