KATHMANDU, Feb 5: Nepal Telecommunications Authority (NTA) has scrapped the limited mobility license awarded to CG Communications after the latter failed to renew its license within the prescribed timeframe.
The operator held the license to operate limited mobility services in seven districts.
Issuing a public notice on Tuesday, the telecommunication sector regulator said it has taken action against CG Communications (CG Telecom). The regulator's move means CG Telecom will be barred from providing its limited mobility service based on wireless telecommunications in Baglung, Palpa, Kanchanpur, Dadeldhura, Baitadi, Bardiya, and Dailekh districts from Sunday.
Sandip Adhikari, deputy director at the NTA, said that the authority took the action after the private telecom company failed to renew the license even in the due date of three months.
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“Due to its failure to meet the norms of the government rule, the company has been barred from operating its limited mobility service in specified districts,” added Adhikari.
As per the existing laws, operators should apply for renewal three months before their license expires. But the company can renew it in three months by paying a fine of 15%.
Surprisingly, the regulator swung into action one day after CG Chairman Binod Chaudhary, in a television interview, expressed commitment to provide voice service free of cost by expanding CG Telecom's services.
However, Adhikari ruled out the possibility of the NTA taking action against the company deliberately. "The NTA had taken similar action against companies like Smart Telecom and United Telecom Ltd Nepal for failing to renew their operating license on time,” he said, adding that the telecommunication service providers need to renew their license every five years.
Adhikari added that the CG Communications can provide its services in other areas except the ones related to limited mobility service in the aforementioned seven districts.
Nepal Telecom and Ncell hold major market share in the domestic telecommunication industry, while the remaining four companies, including CG Communications, have nominal market share. With a population of about 30 million, the land-locked country has near 100% mobile penetration, while nearly half of the population has access to data services.
CG Telecom acquired 80% stake of rural telecom service provider STM Telecom – owned by US-based STM Communications Service Inc – in 2013. Following the move, the company has been trying to receive unified license from the NTA targeting to expand its services.
Last July, the CG Telecom signed a deal worth about $100 million with China's Huawei Technologies to bring 4G phone services to the country. With the agreement, it has targeted to upgrade the service to 5G in the future. The company was supposed to offer free voice services apart from focusing on data, online payment and other services. The company had even announced to achieve one-third market share in three-four years by bringing latest technology.
However, it is not been able to receive unified license so far.
Although the government, some two years ago, decided to provide unified license to CG Telecom, the NTA had declined to provide the unified license and frequency spectrum, accusing the company of not abiding by the government rule.
The telecommunication service providers should clear all pending fees to NTA along with those related to limited service license. CG Telecom was denied unified license also because it had failed to expand limited mobility services in eastern region of Nepal, according to the NTA.
