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Ncell 4G license controversy: PAC’s fresh directives

Ncell which has got 4G license recently and planning to launch soon, has fallen under a controversy. In a fresh directives, the Public accounts committee of parliamentary has asked NTA not to implement the 4G license award to Ncell and send the status of Ncell 4G license issue within three days. This is the most strict directives made so far by the parliamentary committee. Public Accounts Committee (PAC) has been asking NTA not to allow Ncell for 4G and other services until the resolution of the tax issue.

Whereas another committee in parliament, the development committee earlier decided not to bar the 4G license to Ncell, saying it to be against the rights of 10 million customers. Following the development committee directives, NTA decided to approve 4G license to Ncell.

After that, PAC asked NTA for the reason for providing 4G license to Ncell. In reply to PAC’s query, NTA, claimed of awarding no new service and frequency to Ncell. But they mentioned of issuing technology neutrality license to Ncell, that paved the way for 4G in same available spectrum.

NTA in dilemma

As there are two contradictory directives from two different committees of the parliament, NTA is  in dilemma for Ncell 4G license issue. There is also a debate regarding the jurisdiction of several parliamentary committees. NTA says both the committees are equal to the regulator. The letter issued from PAC will reach NTA on Sunday only. So it is known that NTA  need to decide on this issue, after analyzing the new letter from PAC.

Ncell 4G in limbo

Considering the controversy and the issues above, we can not tell exactly what will be the fate of Ncell 4G license issue and when will Ncell launch 4G.

Tax vs Customer Rights

Public account committee is concerned with the unresolved tax issue incurred during the buyout of Ncell by Axiata. As per the rules, 25% of the profit made from sale shall be provided to government as capital gain taxes. PAC firmly believes that only through blocking new services and licenses will pressurize Ncell to clear the huge tax amount. So, the latest directives is strict considering the nearly approaching  timeline of Ncell 4G launch. Whereas Development committee is concerned with the rights of the millions of Ncell customers for 4G. DC believes that the blocking of the 4G license will deprive huge masses from 4G and the development of telecom sector.

Which one do you think is more logical for Ncell 4G license issue? Please comment below.

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