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No 3G permit for new operator: NTA

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KATHMANDU, Jan 7: New telecom operators will not be able to start 3G service in Nepal. Officials of Nepal Telecom Authority (NTA) said they were not in a position to allocate 3G spectrum to new operators as the available spectrums are already occupied by Nepal Telecom and Ncell.



Speaking at the meeting of Public Accounts Committee (PAC) on Thursday, NTA Chairman Bhesraj Kandel the telecom regulator would be able to provide 3G spectrum to other operator only if the existing spectrum is emptied.[break]



“In present condition, we can´t auction 3G spectrum to new players,” Kandel added.



Kandel also defended NTA´s decision of imposing cheaper charge for 3G spectrum as compared to neighboring countries, including India. “We are imposing high taxes on telecom services. Additional charge for spectrum would have made services further expensive,” he added.



Telecom operators are paying 31 percent tax to the government.



Kandel informed PAC members that only Ncell has made complete payment for 3G spectrum as Nepal Telecom does not need to pay fee for the spectrum as per the NTA policy.



PAC members had shown concern over the loss in revenue due to nominal fee charged for 3G spectrum.



Meanwhile, a senior police officer informed PAC members that 20 million minutes of Voice Over Internet Protocol (VoIP) calls are being made to Nepal through illegal channel every month. “Telecom operators are losing revenue of Rs 160 million every month because of call bypassing,” said Deputy Inspector General Rajendra Singh Bhandari.



Before the police started crackdown against VoIP rackets, only 100 million minutes of the total of 180 million minutes of VoIP calls in a month used to come through legal channels.



“We are working on to nab other illegal VoIP users as well,” Singh said, adding that they have so far arrested 24 Nepalis and 9 Bangladeshi for operating VoIP racket.



PAC had summoned officials from Ministry of Information and Communications, Ministry of Home and NTA to hold discussion on frequency distribution and realization of outstanding revenue from telecom operators.



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