NTA instructs Ncell to pay Rs 19 billion, warns of revoking license if renewal fees is not paid by September 1

KATHMANDU, Aug 3: The Nepal Telecommunications Authority (NTA) has directed Ncell, Nepal’s second-largest telecommunications service provider, to pay Rs 19 billion for the renewal of its mobile service license. The NTA sent a letter to Ncell demanding the payment, which includes fees and fines associated with the license renewal.

Ncell was originally required to pay Rs 20 billion by May 29 to renew its license for providing telephone services. However, the company failed to meet this deadline, resulting in an additional Rs 3 billion in fines. Ncell had only paid Rs 4 billion within the deadline, which is about 20 percent of the total amount, and had requested an installment facility.

Although the NTA has yet to decide on the installment request, the Telecommunications Act mandates an additional 15 percent fine for non-compliance, bringing the total renewal cost to Rs 23 billion. Ncell has already paid Rs 4 billion, and the NTA has now instructed the company to pay the remaining Rs 19 billion promptly.

Ncell’s telecommunications license is valid until September 1. The Telecommunications Act allows for renewal up to three months before the license expires. Ncell's GSM cellular mobile service license was first issued in September 2004, with renewal required after 10 years in 2014, another 5 years in 2019, and for a third 5-year term by August 31, 2024.

The company had previously renewed its license by paying Rs 20 billion each time. This time, however, Ncell has only paid Rs 4 billion in advance. According to NTA spokesperson Santosh Paudel, Ncell must pay an additional Rs 3 billion by September 1, 2024, to complete the renewal process.

Ncell has requested an installment option similar to what was provided to Nepal Telecom, but the NTA has not yet made a decision on this request. With the license expiring on September 1, the NTA has warned that failure to pay the remaining amount will result in automatic cancellation of the license.

According to a March 9, 2024, decision by the Council of Ministers, the government has directed the NTA to renew Ncell’s license for the third term only if the company’s assets, property, and ownership are transferred to the government within the next five years. Therefore, the license renewal is dependent upon Ncell meeting these conditions.

Previously, on May 17, 2024, the NTA had instructed Ncell to renew its license for the next five years by paying the required amount and complying with the set conditions.