KATHMANDU, Aug 25: With just six days remaining before the expiration of Ncell’s telecommunication service operation license, the Nepal Telecommunications Authority (NTA) has made “urgent correspondence” with the Ministry of Communications and Information Technology (MoCIT)  and Ncell Axiata Limited.

Despite multiple reminders, Ncell has yet to renew its license by paying the required fee.

In response, the NTA has reached out to the MoCIT and informed it about the situation. Additionally, the NTA has urged Ncell to complete the renewal process by submitting the fee on time.

According to Santosh Paudel, spokesperson for the NTA, Ncell has requested the NTA to pay the renewal fee in installments after making a partial payment.

However, given the imminent expiration of the license and the lack of progress in the renewal process, the NTA has sought the ministry’s assistance in resolving the matter.

Paudel clarified that the NTA does not have the authority to grant installment facilities, though the Nepali government had previously extended such accommodations on two occasions.

“We have repeatedly asked Ncell to pay the renewal fee in full, but the company has insisted on an installment plan. Since the NTA lacks the authority to approve such requests and time is running out, we have informed the ministry accordingly,” Paudel stated.

Ncell’s situation, which has been contentious due to issues such as share transactions and frequency allocation, is currently under scrutiny by a government-appointed probe committee.

While Ncell has requested a renewal fee concession, it has not addressed other financial obligations, such as taxes and state fees.

Although the NTA has outlined the renewal fee in previous communications, it has not provided specific recommendations to the ministry regarding any legal or financial modifications.

Paudel said that the NTA has also directly requested Ncell to pay the remaining renewal fee and complete the renewal process.

According to the Telecommunications Act, 1997 and the Telecommunications Regulations, 1998, the service operation license for Ncell is set to expire on August 31. As per the notification published in the gazette on June 14, 2012, Ncell was required to submit Rs 20.13 billion for license renewal by May 28 of the same year.

To date, Ncell has paid only Rs 4 billion. The company now needs to pay an additional 15 percent fee on the due amount by August 31.

The failure to comply with these requirements will result in the cancellation of Ncell’s license.

Should the company miss the deadline, it could face state takeover, similar to the fate of Smartcell in the past, Paudel stated.

 
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