KATHMANDU, Feb 12: Internet service provider Vianet Communications Limited has paid a total of Rs 550 million, including dues for royalty and the Rural Telecommunications Development Fund (RTDF) for the Fiscal Year (FY) 2023/24 to the Nepal Telecommunications Authority and the Ministry of Communications and Information Technology.
The Telecommunications Act, 2053 BS requires internet service providers to pay 4 percent of their revenue as royalty and 2 percent as the Rural Telecommunications Development Fund (RTDF) fee. The government and ISPs have been in an ongoing dispute over whether this fee applies only to internet sales or also to maintenance costs. ISPs argued that the fee should not apply to maintenance costs. However, after the Supreme Court ordered the implementation of royalty and RTDF fees on maintenance costs as well, Vianet immediately proceeded with the payment of dues.
Vianet has paid the royalty and RTDF for the previous fiscal year. So far, only the two major ISPs in the country have paid the royalty and RTDF for the last year, along with the dues.
Vianet's Chief Financial Officer (CFO), Randhir Kumar Shah, stated, "After the court's order, we have resolved the uncertainty regarding the payment. We are pleased to fulfill our obligations and remain committed to providing excellent service to our users."
With this payment, Vianet confirmed that it has fulfilled all its obligations related to royalty and the Rural Telecommunications Development Fund (RTDF).