Under the present laws, the state-owned telecom giant would have to pay Rs 20.13 billion to renew its permit for the next five years. The government has had a change of heart, and thinks that’s way too high. So it has planned to study the practices in other countries first before fixing the fee. NT’s licence expires on May 11, and it has been urging the Nepal Telecommunications Authority (NTA) to make up its mind. However, the regulator has been taking its time starting a survey of the rates in other parts of the world.
NT is required by law to apply for a renewal three months before the permit expires, and the clock’s ticking. This is the second time the company will be renewing its GSM mobile licence which will allow it to continue providing the service till May 2019.
“We have written to the NTA twice in the last one month asking it what we should do. However, we have not heard from them,” said Guna Keshari Pradhan, spokesperson of NT. She added that they were hopeful that the government would show a proper way out soon.
The Public Accounts Committee of the previous parliament had also told the government to do a study before charging the fee at the current rate for a second renewal. This has made NT hopeful that the charges will be slashed.
Company officials said they had made inquiries about the renewal fee on the basis of a study carried out by the Public Accounts Committee three years ago.
Other telecom companies are closely watching the drama as it will be their turn next. Ncell’s permit expires on Aug 31, and it has to apply for a renewal by May-end which will lengthen its life till August 2019.
Meanwhile, NT has been paying the fee for its first renewal in instalments, and Ncell has been doing the same according to the formula endorsed by the Cabinet last year. Five years ago, NT’s licence was renewed for the first time “provisionally” for a fee of Rs 189 million, as per the NTA.
In a bid to collect ideas regarding how much money should be charged to renew the licence, the government had planned to dispatch a high-level team on a fact-finding mission to four countries. The foreign junket, to be conducted under the coordination of the communications secretary, has not happened one month after it was okayed.
The study tour would have taken the high-level delegates to India, Bangladesh, Malaysia and Thailand. According to Ananda Raj Khanal, acting chief of the NTA, the trip
had been planned as the Public Accounts Committee had ordered them to observe international practices. The NTA has set aside Rs 3 million for the excursion.
“The date for the visit has not been decided,” said Umakant Parajuli, spokesperson of the Communications Ministry. Sources close to the ministry said the government had been having second thoughts about the foreign tour after media criticism that it was unnecessary since local experts could fix the appropriate rates.
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