KATHMANDU, OCT 30 -The issue of committed royalty and third generation (3G) frequency fee of Nepal Telecom (NT) has resurfaced with the Nepal Telecom muni-cations Authority (NTA) issuing it another order to clear outstanding royalty payments and frequency fees.
The state-owned telecom giant owes Rs 3.27 billion in committed royalty, around Rs 951 million in 3G spectrum fee and an unspecified sum in VSAT spectrum charge, said the NTA. The NTA has no idea how much NT must pay in VSAT frequency fee as the government had waived the charges 14 years ago for spreading telecom services to rural areas.
According to NTA Spokesperson Kailash Prasad Neupane, they told NT to pay the remaining committed royalty after consulting with legal advisers following a board decision.“NT had paid only 4 percent of its total income as royalty even though it should have paid the committed royalty like Ncell,” he said.
The NTA should have collected the committed royalty by 2008, but NT had been refusing to pay it citing legal reasons. As per the licence issued to NT, it is required to pay the committed royalty like Ncell and United Telecom Limited (UTL). However; it had paid only 4 percent of its annual income as royalty for the first 10 years of operations (1998-99 to 2007-08).
Oct 30, 2013
Oct 29, 2013
Separate lanes for public transport vehicles urged
KATHMANDU, OCT 29 -Experts have urged the government to promote public transport and create separate lanes for such vehicles on the city’s roads. The recommendation follows growing public concern over traffic management and air pollution.
The number of private vehicles in the country has grown significantly, but public transport is still the main mode of mobility for many people. “Dedicated lanes for public transport is a must,” said Manfred Breithaupt, project director, GIZ-Sustainable Urban Transport Project, while addressing a training programme on sustainable urban transport.
A separate lane for public vehicles will help to make transport services safe, reliable and effective. Manfred stressed the need to encourage people to switch from private vehicles to public transport besides promoting bicycles. He said that cycles were for the people, not the poor, as they are good for heath, economy and environment.
As of the last fiscal year, there were 1.5 million vehicles registered nationwide. An estimated 35,000 mini buses and buses provide public transport services in the country. Participants said that the government should be serious about controlling air pollution and the growing number of vehicles.Studies have shown that pollution kills more people in the world than road accidents, they added.
The number of private vehicles in the country has grown significantly, but public transport is still the main mode of mobility for many people. “Dedicated lanes for public transport is a must,” said Manfred Breithaupt, project director, GIZ-Sustainable Urban Transport Project, while addressing a training programme on sustainable urban transport.
A separate lane for public vehicles will help to make transport services safe, reliable and effective. Manfred stressed the need to encourage people to switch from private vehicles to public transport besides promoting bicycles. He said that cycles were for the people, not the poor, as they are good for heath, economy and environment.
As of the last fiscal year, there were 1.5 million vehicles registered nationwide. An estimated 35,000 mini buses and buses provide public transport services in the country. Participants said that the government should be serious about controlling air pollution and the growing number of vehicles.Studies have shown that pollution kills more people in the world than road accidents, they added.
Oct 28, 2013
Telecom operators paid Rs 1.48b in advance
KATHMANDU, OCT 28 -Telecom companies have made advance payments amounting to Rs 1.48 billion to the government as frequency fee under the new spectrum policy, said the Nepal Telecommunications Authority (NTA).The charge is for spectrum being used by them for their 2G, 3G, WiMax, VSAT and satellite phone services.
The Telecommunications Radio Frequency Distribution and Pricing Policy 2012, which was introduced last year, requires telecom companies to pay for 3G, WiMax, and VSAT spectrum by the first three months (mid-October) of each fiscal year. This is the first time that the government is collecting the frequency fee in advance.The policy has fixed the minimum, additional and maximum frequency for service operation, and telecom companies have to pay up front for the additional and maximum frequency assigned.
The charges for other frequencies — minimum spectrum and microwave airwaves — have to be paid within the first six months of each fiscal year based on the previous year’s income.
“Nepal Telecom (NT) and Ncell paid Rs 746.4 million and Rs 441.7 million respectively as frequency fee,” said Ambar Sthapit, deputy director of the NTA. He added that United Telecom Limited paid Rs 45 million, Smart Telecom Rs 126 million and Nepal Satellite Telecom (NST) Rs 124.4 million. NST has been using additional frequency 9 MHz over the government allocated minimum airwaves.
The Telecommunications Radio Frequency Distribution and Pricing Policy 2012, which was introduced last year, requires telecom companies to pay for 3G, WiMax, and VSAT spectrum by the first three months (mid-October) of each fiscal year. This is the first time that the government is collecting the frequency fee in advance.The policy has fixed the minimum, additional and maximum frequency for service operation, and telecom companies have to pay up front for the additional and maximum frequency assigned.
The charges for other frequencies — minimum spectrum and microwave airwaves — have to be paid within the first six months of each fiscal year based on the previous year’s income.
“Nepal Telecom (NT) and Ncell paid Rs 746.4 million and Rs 441.7 million respectively as frequency fee,” said Ambar Sthapit, deputy director of the NTA. He added that United Telecom Limited paid Rs 45 million, Smart Telecom Rs 126 million and Nepal Satellite Telecom (NST) Rs 124.4 million. NST has been using additional frequency 9 MHz over the government allocated minimum airwaves.
Oct 27, 2013
NPBCL may not meet target set for tunnel highway: Govt officials
KATHMANDU, OCT 26 -Amid delay in the construction of the Kathmandu-Hetauda Tunnel Highway, government officials have said the developer will find it hard to achieve the target of completing 25 percent of the earthwork and the construction of the retaining structure and culverts by December 2013.
The deadline for the work is mentioned in the agreement between the developer — Nepal Purbadhar Bikas Company Limited (NPBCL) — and the government in May. The company plans to start the construction from November 11.As it is yet to acquire approval for the design of pavements, tunnels and bridges from the government, the officials said the delay in immediate approval of the design may push the planned construction date further away.
Without the design approval, the company cannot start the construction, according to the agreement.
After the company submits the design plan, the government should either approve or disapprove it within 21 days. “The ministry will issue the approval for the construction only after verifying the design,” said Tulasi Prasad Situala, secretary at the Ministry of Physical Infrastructure and Transport (MoPIT).
The deadline for the work is mentioned in the agreement between the developer — Nepal Purbadhar Bikas Company Limited (NPBCL) — and the government in May. The company plans to start the construction from November 11.As it is yet to acquire approval for the design of pavements, tunnels and bridges from the government, the officials said the delay in immediate approval of the design may push the planned construction date further away.
Without the design approval, the company cannot start the construction, according to the agreement.
After the company submits the design plan, the government should either approve or disapprove it within 21 days. “The ministry will issue the approval for the construction only after verifying the design,” said Tulasi Prasad Situala, secretary at the Ministry of Physical Infrastructure and Transport (MoPIT).
Oct 25, 2013
NTA again extends time limit for temporary TAC
KATHMANDU, OCT 25 -The government has not been able to enforce its long-planned get-tough policy to discourage imports of substandard mobile sets and stop illegal imports. The Nepal Telecommunications Authority ( NTA ) has once again extended the time period for temporary type approval certification (TAC) thus loosening imports and sales.
This is the fourth time that the NTA has extended the deadline saying that it needs more time to complete a new TAC guideline. Due to the extension, local mobile dealers will be able to import mobile sets without submitting the manufacturer’s safety certification and type approval certificate issued by an international regulator. This paperwork is vital for ensuring that the products being sold in the market satisfy the minimum regulatory, technical and safety requirements.
The NTA has extended the time by when importers will have to submit these documents till mid-July 2014, the end of the fiscal year. TAC is mandatory for import and sale of any model of handset in the domestic market.
Ananda Raj Khanal, acting chief of the NTA , said that enforcing the planned rules immediately could hurt customers who want cheaper handsets. He added that the temporary provision requires dealers importing handsets to provide warranty and repair service besides compensation for injury caused by faulty handsets.
This is the fourth time that the NTA has extended the deadline saying that it needs more time to complete a new TAC guideline. Due to the extension, local mobile dealers will be able to import mobile sets without submitting the manufacturer’s safety certification and type approval certificate issued by an international regulator. This paperwork is vital for ensuring that the products being sold in the market satisfy the minimum regulatory, technical and safety requirements.
The NTA has extended the time by when importers will have to submit these documents till mid-July 2014, the end of the fiscal year. TAC is mandatory for import and sale of any model of handset in the domestic market.
Ananda Raj Khanal, acting chief of the NTA , said that enforcing the planned rules immediately could hurt customers who want cheaper handsets. He added that the temporary provision requires dealers importing handsets to provide warranty and repair service besides compensation for injury caused by faulty handsets.
Oct 24, 2013
Ncell overtakes NT as largest taxpayer
KATHMANDU, OCT 23 -The government’s revenue collection from telecom companies soared in the last fiscal year 2012-13. According to the Nepal Telecommunica-tions Authority (NTA), six telecom companies paid Rs 35.34 billion in taxes under different heads.
Ncell accounted for more than 50 percent of this figure, pouring Rs 20.76 billion into the government coffers. State-owned Nepal Telecom (NT) chipped in Rs 13.39 billion, according to the annual progress report prepared by the NTA. As per the latest figures, Ncell has overtaken NT as the largest taxpayer in the sector.
Even as the telecom regulator released figure shows Ncell becoming the top tax payer. NT has stated that it was still the largest revenue contributing company paying Rs 21.92 billion revenue (tax and non-tax) to the government in the last fiscal year. The amount also include over Rs 6 billion dividend paid to the government by the NT.
However, NTA officials argue that the NT paid dividend could not be added as tax. They said there had been a massive growth in tax payments mainly due to the increased earnings of Ncell. Purushottam Khanal, director of the NTA said tax payments by all the telecom companies had been increasing along with their rising subscriber base. The number of users of telecom services reached 21.3 million by the end of the last fiscal year, up from 17.2 million a year ago.
Ncell accounted for more than 50 percent of this figure, pouring Rs 20.76 billion into the government coffers. State-owned Nepal Telecom (NT) chipped in Rs 13.39 billion, according to the annual progress report prepared by the NTA. As per the latest figures, Ncell has overtaken NT as the largest taxpayer in the sector.
Even as the telecom regulator released figure shows Ncell becoming the top tax payer. NT has stated that it was still the largest revenue contributing company paying Rs 21.92 billion revenue (tax and non-tax) to the government in the last fiscal year. The amount also include over Rs 6 billion dividend paid to the government by the NT.
However, NTA officials argue that the NT paid dividend could not be added as tax. They said there had been a massive growth in tax payments mainly due to the increased earnings of Ncell. Purushottam Khanal, director of the NTA said tax payments by all the telecom companies had been increasing along with their rising subscriber base. The number of users of telecom services reached 21.3 million by the end of the last fiscal year, up from 17.2 million a year ago.
Oct 23, 2013
Ghale elected new NRNA prez after win
KATHMANDU, OCT 22 -The sixth general assembly of Non-Resident Nepali Association ( NRNA ) has elected Shesh Ghale as its new president for the next two years after his victory in the first-ever election for the top post.
Ghale, an Australia-based multi-millionaire, defeated his rival Tenzi Sherpa, an NRN from South Korea, by a comfortable margin of 230 votes in the election held on Sunday evening. Ghale secured 510 votes against Sherpa’s 280. Earlier on Sunday, three other presidential candidates Hitman Gurung, Ram Pratap Thapa and Rameshwor Shah had pulled out of the race after a long and hectic negotiation. All the three subsequently backed Ghale. The organisation of the Nepali diaspora established in 2003 was first led by founder President Upendra Mahato for three terms through consensus. The association’s fourth and fifth general assemblies had unanimously elected Dev Man Hirachan (in 2009) and Jiba Lamichhane (in 2011) as president.
Ghale, an Australia-based multi-millionaire, defeated his rival Tenzi Sherpa, an NRN from South Korea, by a comfortable margin of 230 votes in the election held on Sunday evening. Ghale secured 510 votes against Sherpa’s 280. Earlier on Sunday, three other presidential candidates Hitman Gurung, Ram Pratap Thapa and Rameshwor Shah had pulled out of the race after a long and hectic negotiation. All the three subsequently backed Ghale. The organisation of the Nepali diaspora established in 2003 was first led by founder President Upendra Mahato for three terms through consensus. The association’s fourth and fifth general assemblies had unanimously elected Dev Man Hirachan (in 2009) and Jiba Lamichhane (in 2011) as president.
NRNA holds first ever polls to choose chief
KATHMANDU, OCT 21 -After hectic negotiations on Sunday, two candidates—Shesh Ghale from Australia and Tenzi Sherpa from South Korea—entered the race for presidency of the Non-Resident Nepali Association ( NRNA ). This is the first time that the NRNA top post is being decided by the vote.
Three other presidential candidates UK-based Hitman Gurung, Germany-based Ram Pratap Thapa and UAE-based Rameshwor Shah pulled out of the race following the lengthy discussion over consensus-presidency on Sunday. On Saturday, a total of five candidates had filed their nomination for the top post of the NRNA executive committee.
While each of the past presidents of the NRNA had been chosen unanimously, the failure to reach consensus this time round led to the election. The voting which started at 8:30 pm was still going on until when went to press.“This time the president is going to be selected through democratic process,” said Ghale, assuring that he had ‘ambition and resources’ to do something for the NRN community and mother country.
Three other presidential candidates UK-based Hitman Gurung, Germany-based Ram Pratap Thapa and UAE-based Rameshwor Shah pulled out of the race following the lengthy discussion over consensus-presidency on Sunday. On Saturday, a total of five candidates had filed their nomination for the top post of the NRNA executive committee.
While each of the past presidents of the NRNA had been chosen unanimously, the failure to reach consensus this time round led to the election. The voting which started at 8:30 pm was still going on until when went to press.“This time the president is going to be selected through democratic process,” said Ghale, assuring that he had ‘ambition and resources’ to do something for the NRN community and mother country.
Govt collects Rs 3.52b frequency fee from telcos: NTA report
KATHMANDU, OCT 20 - The government has collected revenue of Rs 3.52 billion as spectrum fee in the last fiscal year from telecom operators and other companies using VSAT radio frequencies, according to the annual progress report of the Nepal Telecommunications Authority (NTA). The increase in revenue collection was possible largely due to fixing of price and collection of the 3G spectrum.
The fee collected by the government includes Rs 1.92 billion paid by two companies—Nepal Telecom (NT) and Ncell for using spectrum for 3G service. After the government fixed the fee last year, Ncell paid Rs 1.44 billion in 3G fee, while the NT paid Rs 488 million. Earlier, there was no specific provision as regards the government charges on 3G frequency.
With the government collecting the 3G spectrum fee , the revenue from radio frequencies being used by telecom companies has increased by over 600 percent. In the fiscal year 2011-12, the government had collected Rs 501 million spectrum fee s from the telecom companies and VSAT spectrum users. The fee collected by the government in the last fiscal year include charges of airwaves used for GSM mobile and CDMA services, microwave links, WiMax, Global Mobile Personal Communication System (satellite phone) and VSAT service in the fiscal year 2011-12, according to the NTA.
The fee collected by the government includes Rs 1.92 billion paid by two companies—Nepal Telecom (NT) and Ncell for using spectrum for 3G service. After the government fixed the fee last year, Ncell paid Rs 1.44 billion in 3G fee, while the NT paid Rs 488 million. Earlier, there was no specific provision as regards the government charges on 3G frequency.
With the government collecting the 3G spectrum fee , the revenue from radio frequencies being used by telecom companies has increased by over 600 percent. In the fiscal year 2011-12, the government had collected Rs 501 million spectrum fee s from the telecom companies and VSAT spectrum users. The fee collected by the government in the last fiscal year include charges of airwaves used for GSM mobile and CDMA services, microwave links, WiMax, Global Mobile Personal Communication System (satellite phone) and VSAT service in the fiscal year 2011-12, according to the NTA.
Ncell’s Q3 sales jump 28.6pc
KATHMANDU, OCT 19 -TeliaSonera, parent company of Ncell , said on Thursday that Ncell ’s net sales soared 28.6 percent in the third quarter of 2013. The company said that the growth was driven by a higher number of subscriptions and strong growth in data.
As per the Q3 financial report released by the company, Ncell ’s net sales reached 2,256 million Swedish kroner (SEK) - equivalent to Rs 34.3 billion - at the end of Q3 with a 10.8 million subscriber base. By the same period last year, net sales of Ncell were at SEK 2,000 million.
“Growth was strongest in Nepal and Kazakhstan with a rise of 2.2 million and 1.6 million to 10.8 million and 14.3 million subscriptions respectively,” said the Q3 report. During the quarter, Nepal and Uzbekistan showed the largest rises with additions of 0.4 million subscriptions each.
The multinational telecom company has been witnessing good revenue growth in the Eurasian market, supported by increasing data consumption and subscription growth. The Eurasian market includes Ncell , Kcell in Kazakhstan, Azercell in Azerbaijan, Ucell in Uzbekistan, Tcell in Tajikistan, Geocell in Georgia and Moldcell in Moldova.
Ncell ’s user base had crossed the 10-million mark during the Q2. It has been offering different data packages to customers to increase its share in the data market amid increasing competition with state-owned Nepal Telecom. Recently, the company launched bundling schemes which enable customers to obtain a certain amount of data free of cost with purchase of a handset.
As per the Nepal Telecommunications Authority (NTA), the number of data users of Ncell reached 3.55 million as of mid-August 2013. Milan Sharma, corporate communication expert of Ncell , said that there was significant growth in demand for data service besides voice. “Our 3G service sites are increasing, and so is the number of subscribers, mainly youngsters who use data more,” he added.
TeliaSonera has significant investments in telecom operations in Nepal, Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova, Russia and Turkey. It pulled out of Nepal Satellite Telecom (NST) amid complexities last month.
According to the Q3 report, divestment of NST resulted in a loss of SEK 389 million. It has stated that the exit would help it to focus on Ncell and “reduce the business risk and complexity of its involvement in Nepal”. TeliaSonera had reached an agreement to sell back its indirect investment to Zhodar Investment.
As per the Q3 financial report released by the company, Ncell ’s net sales reached 2,256 million Swedish kroner (SEK) - equivalent to Rs 34.3 billion - at the end of Q3 with a 10.8 million subscriber base. By the same period last year, net sales of Ncell were at SEK 2,000 million.
“Growth was strongest in Nepal and Kazakhstan with a rise of 2.2 million and 1.6 million to 10.8 million and 14.3 million subscriptions respectively,” said the Q3 report. During the quarter, Nepal and Uzbekistan showed the largest rises with additions of 0.4 million subscriptions each.
The multinational telecom company has been witnessing good revenue growth in the Eurasian market, supported by increasing data consumption and subscription growth. The Eurasian market includes Ncell , Kcell in Kazakhstan, Azercell in Azerbaijan, Ucell in Uzbekistan, Tcell in Tajikistan, Geocell in Georgia and Moldcell in Moldova.
Ncell ’s user base had crossed the 10-million mark during the Q2. It has been offering different data packages to customers to increase its share in the data market amid increasing competition with state-owned Nepal Telecom. Recently, the company launched bundling schemes which enable customers to obtain a certain amount of data free of cost with purchase of a handset.
As per the Nepal Telecommunications Authority (NTA), the number of data users of Ncell reached 3.55 million as of mid-August 2013. Milan Sharma, corporate communication expert of Ncell , said that there was significant growth in demand for data service besides voice. “Our 3G service sites are increasing, and so is the number of subscribers, mainly youngsters who use data more,” he added.
TeliaSonera has significant investments in telecom operations in Nepal, Kazakhstan, Azerbaijan, Uzbekistan, Tajikistan, Georgia, Moldova, Russia and Turkey. It pulled out of Nepal Satellite Telecom (NST) amid complexities last month.
According to the Q3 report, divestment of NST resulted in a loss of SEK 389 million. It has stated that the exit would help it to focus on Ncell and “reduce the business risk and complexity of its involvement in Nepal”. TeliaSonera had reached an agreement to sell back its indirect investment to Zhodar Investment.
Oct 18, 2013
Telecoms offering bundling schemes to woo customers
KATHMANDU, OCT 18 -Telecom companies have been going for service bundling schemes in a bid to attract customers and sell their products. Nepal Telecom (NT), Ncell and United Telecom Limited (UTL) have been offering their service by lumping it with different brands of cell phones.
With mobile handsets supporting IP CDMA technology in short supply in the market, NT has been bundling its RUIM cards with Micromax, Alcatel and Lenovo handsets in order to sell mobile lines. The cell phones cost from Rs 5,500 to Rs 20,500 depending on the brand, model and features.
Customers buying this package also get voice and data service worth Rs 200 to Rs 500 free of charge each month as an incentive. Besides handsets, NT has been bundling its RUIM cards with USB dongles with an eye on data service. The bundling scheme is directed at selling RUIM cards for its Sky Pro service based on IP CDMA technology that supports both data and voice service.
NT’s Deputy Managing Director Anoop Ranjan Bhattarai said that these bundling schemes had helped to increase their customer base when a shortage of IP CDMA technology-based handsets had been hindering growth of this segment. “We are also working to introduce this type of scheme for high-end handsets after a few months,” he added.
With mobile handsets supporting IP CDMA technology in short supply in the market, NT has been bundling its RUIM cards with Micromax, Alcatel and Lenovo handsets in order to sell mobile lines. The cell phones cost from Rs 5,500 to Rs 20,500 depending on the brand, model and features.
Customers buying this package also get voice and data service worth Rs 200 to Rs 500 free of charge each month as an incentive. Besides handsets, NT has been bundling its RUIM cards with USB dongles with an eye on data service. The bundling scheme is directed at selling RUIM cards for its Sky Pro service based on IP CDMA technology that supports both data and voice service.
NT’s Deputy Managing Director Anoop Ranjan Bhattarai said that these bundling schemes had helped to increase their customer base when a shortage of IP CDMA technology-based handsets had been hindering growth of this segment. “We are also working to introduce this type of scheme for high-end handsets after a few months,” he added.
Oct 17, 2013
Study on cross-holding in telecom to be resumed
KATHMANDU, OCT 17 -The government plans to resume examining a policy to manage and regulate cross-holding in the telecom sector. The Nepal Telecommunications Authority ( NTA ) has formed a new committee to carry out a study and submit a report.
The new committee under the coordination of Bhaskar Mani Gyawali, executive director of the Nepal Rastra Bank, has been asked to complete the study within 30 days. The members in the panel are chartered accountant Shiva Prasad Pandey and NTA ’s deputy director Kailash Neupane.
An NTA board meeting held last week had decided to form a committee and complete the stalled study to formulate a policy on cross-holding issues, according to the NTA . The previous committee had abandoned the study halfway after its coordinator Madhav Paudel was named Minister for Information and Communications.
Cross-holding is a situation when a company or person has investments in more than one licensee company in the same service area. “We will start the study on cross-holding in the telecom market immediately after the Dashain festival,” said Neupane who is also the NTA spokesperson. He added that they would review the previous study and give a final report to the NTA board.
The new committee under the coordination of Bhaskar Mani Gyawali, executive director of the Nepal Rastra Bank, has been asked to complete the study within 30 days. The members in the panel are chartered accountant Shiva Prasad Pandey and NTA ’s deputy director Kailash Neupane.
An NTA board meeting held last week had decided to form a committee and complete the stalled study to formulate a policy on cross-holding issues, according to the NTA . The previous committee had abandoned the study halfway after its coordinator Madhav Paudel was named Minister for Information and Communications.
Cross-holding is a situation when a company or person has investments in more than one licensee company in the same service area. “We will start the study on cross-holding in the telecom market immediately after the Dashain festival,” said Neupane who is also the NTA spokesperson. He added that they would review the previous study and give a final report to the NTA board.
Oct 8, 2013
RFP rejection ‘not the end’ for Fast Track
KATHMANDU, OCT 08 -Amid uncertainty over the future of the Kathmandu-Tarai Fast Track Road Project after prospective foreign investors moving away from the project, experts have said the expressway could be developed with domestic resources.
After all three selected Indian companies which were supposed to take part in bidding for the request for proposal (RFP) refrained from applying for the project, the future of one of the ‘National Pride Projects’ has remained uncertain.
Reliance Infrastructure, Infrastructure Leasing & Financial Services (IL&FS) and Larsen and Turbo (L&T) were shortlisted to take part in the RFP. After they failed to submit a proposal for the RFP, the government is yet to make any decision regarding its future.
Former Finance Secretary Rameshwor Khanal said that it had been over 15 years since the government envisaged the of building the Fast Track Road, and it should not be delayed due to foreign investors not undertaking the project. “As much as time passes, the investment cost of the project goes up and it becomes increasingly difficult to fund the project,” he said.
However, he suggested that an Infrastructure Development Fund could be established, through which Rs 8 - 10 billion could be spent annually for the project. The projected total cost of the project is Rs 100 billion, which the government planned to develop under the build, own, operate and transfer (BOOT) modality.
After all three selected Indian companies which were supposed to take part in bidding for the request for proposal (RFP) refrained from applying for the project, the future of one of the ‘National Pride Projects’ has remained uncertain.
Reliance Infrastructure, Infrastructure Leasing & Financial Services (IL&FS) and Larsen and Turbo (L&T) were shortlisted to take part in the RFP. After they failed to submit a proposal for the RFP, the government is yet to make any decision regarding its future.
Former Finance Secretary Rameshwor Khanal said that it had been over 15 years since the government envisaged the of building the Fast Track Road, and it should not be delayed due to foreign investors not undertaking the project. “As much as time passes, the investment cost of the project goes up and it becomes increasingly difficult to fund the project,” he said.
However, he suggested that an Infrastructure Development Fund could be established, through which Rs 8 - 10 billion could be spent annually for the project. The projected total cost of the project is Rs 100 billion, which the government planned to develop under the build, own, operate and transfer (BOOT) modality.
Oct 7, 2013
Welcome aboard deluxe class
Coaches come to the rescue of travellers caught between costly airfares, rickety buses
KATHMANDU, OCT 07 -With the common complaints of Dashain travellers being that airfares are too expensive and normal bus services too erratic, the presence of a few hundred deluxe buses are filling the void for those wanting to make their journey both budget friendly and comfortable.
Although such bus services are not widely available, they are available on long travel routes, particularly to eastern Nepal. In just five years, such services give an alternative to the often erratic and uncomfortable bus services dominating the road transport sector.
The deluxe bus service has become the best road transport service for Priyanka Raut from Dharan, and Prajita Adhikari of Biratnagar, who have been in the capital for their nursing studies. “Since it costs over Rs 6,000 for a Kathmandu-Biratnagar flight, the deluxe bus is the best service for customers like us,” said Raut, who was heading to Dharan for Dashain .
Her friend Adhikari agreed that the main attraction of the deluxe and air conditioned vehicles was the comfortable folding seats having enough leg space. “Some operators even offer you snacks besides water, and some provide facilities for mobile recharging.”
KATHMANDU, OCT 07 -With the common complaints of Dashain travellers being that airfares are too expensive and normal bus services too erratic, the presence of a few hundred deluxe buses are filling the void for those wanting to make their journey both budget friendly and comfortable.
Although such bus services are not widely available, they are available on long travel routes, particularly to eastern Nepal. In just five years, such services give an alternative to the often erratic and uncomfortable bus services dominating the road transport sector.
The deluxe bus service has become the best road transport service for Priyanka Raut from Dharan, and Prajita Adhikari of Biratnagar, who have been in the capital for their nursing studies. “Since it costs over Rs 6,000 for a Kathmandu-Biratnagar flight, the deluxe bus is the best service for customers like us,” said Raut, who was heading to Dharan for Dashain .
Her friend Adhikari agreed that the main attraction of the deluxe and air conditioned vehicles was the comfortable folding seats having enough leg space. “Some operators even offer you snacks besides water, and some provide facilities for mobile recharging.”
Oct 4, 2013
Govt okays Nepal Telecom’s strategic partnership plan
KATHMANDU, OCT 04 -Nepal Telecom ’s (NT) plan to bring a strategic partner has taken another step forward with the Cabinet agreeing to the proposal in principle. Thursday’s decision has cleared the way for the government to sell part of its stock in NT to the prospective strategic partner. However, the number of shares the government will sell has not been decided.
The Ministry of Information and Communications had forwarded the proposal to bring a strategic partner at NT to the Cabinet. NT has been urging the government to allow it to tie up with a competent partner for the last four years, but it has delayed giving its okay. “The Cabinet has now given the go-ahead to take the process further,” said Janma Jaya Regmi, chief of the public enterprise coordination division at the Finance Ministry.
According to Regmi, who is also a coordinator of the technical sub-committee formed to conduct the procedures, the government plans to divest 30 percent of its shares. He added that their team was currently preparing the expression of interest (EoI) to hire an international consultant to help NT find a partner. NT plans to invite applications for a consultant by November.
The consultant will prepare the bid documents for potential strategic partners and prepare a due diligence report of NT besides performing other tasks. Anoop Ranjan Bhattarai, deputy managing director of NT, said that the long-standing plan would now move towards materialisation as the government had given the go-ahead.
The Ministry of Information and Communications had forwarded the proposal to bring a strategic partner at NT to the Cabinet. NT has been urging the government to allow it to tie up with a competent partner for the last four years, but it has delayed giving its okay. “The Cabinet has now given the go-ahead to take the process further,” said Janma Jaya Regmi, chief of the public enterprise coordination division at the Finance Ministry.
According to Regmi, who is also a coordinator of the technical sub-committee formed to conduct the procedures, the government plans to divest 30 percent of its shares. He added that their team was currently preparing the expression of interest (EoI) to hire an international consultant to help NT find a partner. NT plans to invite applications for a consultant by November.
The consultant will prepare the bid documents for potential strategic partners and prepare a due diligence report of NT besides performing other tasks. Anoop Ranjan Bhattarai, deputy managing director of NT, said that the long-standing plan would now move towards materialisation as the government had given the go-ahead.
Oct 3, 2013
NTA set to issue white paper for clarity and progress
KATHMANDU, OCT 03 -The Nepal Telecommuni-cations Authority (NTA) is mulling to come up with a ‘white paper’ aimed at further expanding the telecom sector. Although the sector has emerged as big business, the government does not have any specific strategy to lead the sector forward.
Despite conducting a report in 2010, that outlined a 10-year master plan to develop the sector, the NTA board failed to finalise and endorse the proposal.
According to NTA officials, the white paper would cover strategies on prudent management of the spectrum, prepare necessary rules on time, implement the broadband policy, assign spectrum to new mobile operators, the auction of 3G and 4G spectrums, among others.“The white paper will be the guideline for carrying out telecom sector related activities in a highly predictable manner,” said Ananda Raj Khanal, acting chief of the NTA.
He said that with the paper they would focus on maximising the use of resources, like radio frequency, for development in the sector, helping the government generate more revenue. “All the members in the stop-gap committee of the NTA, that has been given the power to reach a decision in the absence of the NTA chairman, are positive on issuing the white paper by hiring an independent consultant,” said Khanal.
Despite conducting a report in 2010, that outlined a 10-year master plan to develop the sector, the NTA board failed to finalise and endorse the proposal.
According to NTA officials, the white paper would cover strategies on prudent management of the spectrum, prepare necessary rules on time, implement the broadband policy, assign spectrum to new mobile operators, the auction of 3G and 4G spectrums, among others.“The white paper will be the guideline for carrying out telecom sector related activities in a highly predictable manner,” said Ananda Raj Khanal, acting chief of the NTA.
He said that with the paper they would focus on maximising the use of resources, like radio frequency, for development in the sector, helping the government generate more revenue. “All the members in the stop-gap committee of the NTA, that has been given the power to reach a decision in the absence of the NTA chairman, are positive on issuing the white paper by hiring an independent consultant,” said Khanal.
Oct 2, 2013
Govt revises capital requirement for new firms
KATHMANDU, OCT 02 -The government has implemented a new provision on the “minimum capital requirement” for registering private firms.Under the new criteria, individuals willing to register business firms should have a minimum capital ranging from Rs 100,000 to Rs 4 million, depending on the nature of trading and geography, according to the Department of Commerce and Supply Management. Earlier, the minimum capital requirement was Rs 100,000 irrespective of business.
The new criteria has made it mandatory for traders to show a minimum capital Rs 100,000 and pay a registration fee of Rs 600 for registering businesses such as grocery shops, stationery, vegetable shops at village development committees (VDC) level of mountain and hilly districts.
For Kathmandu and Tarai district headquarters and municipalities, the minimum capital requirement has been fixed at Rs 300,000 for grocery and stationery shops. For businesses like fuel station, jewellery shop, machinery, transformer and automobile, individuals must have a minimum capital of Rs 4 million.
The department has fixed the capital, registration charge and renewal charge by categorising businesses under six categories.Department officials said the new provision was brought to discourage the trend of registering firms revealing small size of capital to avoid registration charge and renewal fee. “The new provision requires individuals registering a business to specify geography, nature of business and minimum capital accordingly,” said Binod Prakash Singh, deputy director general of the department.
The new criteria has made it mandatory for traders to show a minimum capital Rs 100,000 and pay a registration fee of Rs 600 for registering businesses such as grocery shops, stationery, vegetable shops at village development committees (VDC) level of mountain and hilly districts.
For Kathmandu and Tarai district headquarters and municipalities, the minimum capital requirement has been fixed at Rs 300,000 for grocery and stationery shops. For businesses like fuel station, jewellery shop, machinery, transformer and automobile, individuals must have a minimum capital of Rs 4 million.
The department has fixed the capital, registration charge and renewal charge by categorising businesses under six categories.Department officials said the new provision was brought to discourage the trend of registering firms revealing small size of capital to avoid registration charge and renewal fee. “The new provision requires individuals registering a business to specify geography, nature of business and minimum capital accordingly,” said Binod Prakash Singh, deputy director general of the department.
World wide web to be given local boost
KATHMANDU, OCT 02 -Experts on Tuesday underlined the need for increased local content on the internet , to capitalise on the global network and reap the benefits of exposure. The idea has come at a time when Nepal is failing to boost local content on the web, despite a remarkable growth in the nation’s internet connectivity.
Currently, it is estimated that over 90 percent of the content being accessed by Nepali internet users is being generated from sources outside of the country. Participants at the Asia Internet Symposium, held in the capital on Tuesday, have stated that the use of local web content helps to provide opportunities for entrepreneurship on a global level, and offers a platform that enables the sharing of knowledge and culture.
Nepali wikipedia, e-pustakalya and e-paath are some of the local content available on the internet . Participants said with Nepali being the main language, the content development in Nepali for internet resources would further push the demand for connectivity to increase.
Binay Bohara, president of the Internet Service Providers Association of Nepal said that expanding broadband infrastructure to a community level and utilising local content was equally important. “As the future is in mobiles, the government should push the development of local content, so that the users can access information through handsets.”
Currently, it is estimated that over 90 percent of the content being accessed by Nepali internet users is being generated from sources outside of the country. Participants at the Asia Internet Symposium, held in the capital on Tuesday, have stated that the use of local web content helps to provide opportunities for entrepreneurship on a global level, and offers a platform that enables the sharing of knowledge and culture.
Nepali wikipedia, e-pustakalya and e-paath are some of the local content available on the internet . Participants said with Nepali being the main language, the content development in Nepali for internet resources would further push the demand for connectivity to increase.
Binay Bohara, president of the Internet Service Providers Association of Nepal said that expanding broadband infrastructure to a community level and utilising local content was equally important. “As the future is in mobiles, the government should push the development of local content, so that the users can access information through handsets.”
Oct 1, 2013
Jewellers put in place regulation
KATHMANDU, OCT 01 -Gold dealers have unilaterally prepared rules on jewellery business, which has allowed them to earn profit up to 20 percent. Two federations of the dealers have asked all its members across the country to implement the rules and conduct business accordingly from Tuesday.
But only the government has the right to introduce such a regulation. The “Jewellery Business Operation Regulation” of the traders has come at the time when the government has resumed inspection of jewellery shops. The government has filed cases against eight jewellers found cheating customers.
The jewellers came up with the regulation after they failed to agree to the draft guideline being prepared by the government. The regulation says while buying jewellery from customers, traders can reduce the price of the item by 10 percent compared to the market price on the business day. “Since the government delayed the preparation and implementation of the standard rules, we had to devise our own,” said Ramesh Maharjan, president of the Federation of Nepal Gold, Silver, Gem and Jewellery Association (FNGSGJA). He added it has already been more than three months since the government started the work on the guideline.
Deepak Subedi, officiating secretary at the Ministry of Commerce Supply, said traders could not introduce a regulation setting own standards. “We will discuss on the matter with the Department of Commerce and Supply Management and Nepal Bureau of Standards and Metrology on Tuesday,” he said.
But only the government has the right to introduce such a regulation. The “Jewellery Business Operation Regulation” of the traders has come at the time when the government has resumed inspection of jewellery shops. The government has filed cases against eight jewellers found cheating customers.
The jewellers came up with the regulation after they failed to agree to the draft guideline being prepared by the government. The regulation says while buying jewellery from customers, traders can reduce the price of the item by 10 percent compared to the market price on the business day. “Since the government delayed the preparation and implementation of the standard rules, we had to devise our own,” said Ramesh Maharjan, president of the Federation of Nepal Gold, Silver, Gem and Jewellery Association (FNGSGJA). He added it has already been more than three months since the government started the work on the guideline.
Deepak Subedi, officiating secretary at the Ministry of Commerce Supply, said traders could not introduce a regulation setting own standards. “We will discuss on the matter with the Department of Commerce and Supply Management and Nepal Bureau of Standards and Metrology on Tuesday,” he said.
Rat behind service disruption: NT
KATHMANDU, OCT 01 -The Nepal Telecom (NT) said on Monday that its service had been interrupted on Saturday due to rats damaging the optical fibre based transmission links in its Sundhara office.
The company’s mobile network was out of service for four hours (5:50 am to 9:45 am) on Saturday morning, leaving over 1 million customers in the Kathmandu valley without GSM mobile or data service. “Our study has verified that the fibre wires were cut off by rats, causing the service in the Kathmandu valley to be disrupted,” said the NT spokesperson, Guna Keshari Pradhan.
She added that, as a precaution, the company has started test operations on a redundant transmission link so that the service remains uninterrupted, even if another route stops working.
After Saturday’s incident, the NT had used poison to get rid of the rats, according to officials. Since its offices face a problem with rats, the NT has long had been using mouse repellents; but those measures clearly did not prevent Saturday’s service disruption. After the fibres were cut, the transmission link between the NT’s Master Switching Controller (MSC) in its Babarmahal office (Telecom Training Centre) and the gateway at the Sundhara office was disrupted, according to the NT officials.
The company’s mobile network was out of service for four hours (5:50 am to 9:45 am) on Saturday morning, leaving over 1 million customers in the Kathmandu valley without GSM mobile or data service. “Our study has verified that the fibre wires were cut off by rats, causing the service in the Kathmandu valley to be disrupted,” said the NT spokesperson, Guna Keshari Pradhan.
She added that, as a precaution, the company has started test operations on a redundant transmission link so that the service remains uninterrupted, even if another route stops working.
After Saturday’s incident, the NT had used poison to get rid of the rats, according to officials. Since its offices face a problem with rats, the NT has long had been using mouse repellents; but those measures clearly did not prevent Saturday’s service disruption. After the fibres were cut, the transmission link between the NT’s Master Switching Controller (MSC) in its Babarmahal office (Telecom Training Centre) and the gateway at the Sundhara office was disrupted, according to the NT officials.
NT begins scouting for strategic partner
KATHMANDU, OCT 01 -Nepal Telecom (NT) plans to hire an international consultant to help it with the preparations to find a strategic partner. The consultant will be employed to carry out a due diligence audit (DDA) report and prepare the bid document. NT plans to select the consultant by November.
A sub-committee, assigned to carry out legal and procedural activities, is expected to complete drafting the expression of interest (EoI) soon. “We will complete the EoI preparations within one month and submit it to the NT board," said Basu Sharma, undersecretary at the Ministry of Finance (MoF), who is also a member of the sub-committee.
According to Sharma, the NT will be able to call the EoI based on the terms of reference prepared by them without seeking the approval of the Cabinet. “It will take 45 days to receive the EoI from interested consultants once the notice is called,” he added.
The sub-committee, headed by the MoF Joint Secretary Janma Jaya Regmi, includes officials from the Ministry of Law and Justice, the Ministry of Information and Communications and the NT. With increasing competition in the domestic telecom market, the state-owned company has been seeking a partner for over three years, however work to this effect has failed to progress due to procedural delays.
A sub-committee, assigned to carry out legal and procedural activities, is expected to complete drafting the expression of interest (EoI) soon. “We will complete the EoI preparations within one month and submit it to the NT board," said Basu Sharma, undersecretary at the Ministry of Finance (MoF), who is also a member of the sub-committee.
According to Sharma, the NT will be able to call the EoI based on the terms of reference prepared by them without seeking the approval of the Cabinet. “It will take 45 days to receive the EoI from interested consultants once the notice is called,” he added.
The sub-committee, headed by the MoF Joint Secretary Janma Jaya Regmi, includes officials from the Ministry of Law and Justice, the Ministry of Information and Communications and the NT. With increasing competition in the domestic telecom market, the state-owned company has been seeking a partner for over three years, however work to this effect has failed to progress due to procedural delays.
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