Ncell mobile license renewed after payment of 4 Billion

NTA board decides on Monday to renew the mobile license of Ncell for 5 years. Ncell also gets the facility to pay the mobile license renewal fee of NRs 20 billion in installments. Earlier they gave the same comfort to Nepal Telecom, Read more.

Ncell paid an amount of Rs 4 billion which is the first installment of the renewal fee, NRs 20 billion. So, they have to pay the full amount in 5 years time.

This is the second time Ncell mobile license is renewed. They secured the mobile license on 2061 Bhadra 16. After the first payment of NRs 20 billion, the telco renewed its mobile license in 2071. That time, both Ntc and Ncell paid the 20 billion amount in 8 installments.

• NTA sets a deadline to Nepal Telecom for license fee payment.

As it was no clear on the renewal price in the existing law, NTA board decided to charge the same amount of NRs 20 billion which the telcos paid to get the license. So, for every Telcos after 10 years of getting the license, they should renew the license with the same amount every 5 years.

Telecom operators has been hesitating to pay the whopping fees, as it was not clear in the law. They also claimed that payment of such huge amount will put a lot of pressure to them and questioned the sustainability of the telcos.

Nepal Telecom got the mobile license in 2056 B.S. That time Ntc agreed to pay the license amount to be decided later. As Ncell (Mero Mobile) agreed upon the 20 billion Rs for the mobile license, NTA carried over the same amount to Ntc for getting the license and renewal.

After paying the same installment amount, NTA also renewed the mobile license of Nepal Telecom on July 17, 2019. Despite the unwillingness of NT management and Trade union’s dissent, NTA forced the mobile license amount to them.

Fearing of loosing the huge revenue to the Government, OAG (Office of Auditor General) Annual report directed to collect the 20 billion mobile license renewal amount.

• Telecom services expensive in Nepal: OAG Report

NTA at multiple times recommended to charge 4 percent of the total revenue for the license renewal. But it seems that they will charge the same 20 billion amount to all telcos for renewal. Now we wonder if Ntc and Ncell are scratching their heads to pay that amount, what will happen to other telcos still operational now.

Tell us what do you think of the mobile license renewal fee?