NTA has decided that it will contest the Subisu compensation verdict over broadband set up in Province 2. Challenging the decision by the mediator, the telecom authority has lodged its appeal at Patan High Court.
The mediator had concluded that NTA should pay the private ISP Subisu 61 crores in compensation. Techpana has quoted NTA Deputy Director that the conciliating party ignored its data and legal statistics to draw its resolution.
Subisu’s Delayed Broadband Projects
Subisu has procured two contracts issued by NTA for fiber infrastructure in Province no. 2. Both the projects were to be complete within a year. Dubbed package A, the private ISP was to develop a fiber broadband network and expand the connectivity in Saptari, Siraha, Dhanusha, and Mahottari.
NTA had estimated 85 crores for the project and Subisu earned the bid for its minimum costs projection of 41 crores, 93 lakhs, 3 thousand, and 650.
Subisu submitted its will to complete the project with a further 25% discount at 31 crores, 44 lakhs, 77 thousand, and 737. In addition, the ISP was tasked to install the connection in each household for the proposed Rs.6400. Subisu would later lower it to Rs.4800 after a 25% discount.
For project B, Subisu was to widen the fiber reach in Bara, Pars, Rautahat, and Sarlahi. The Kathmandu-based ISP again proposed to complete it at Rs.40 47 lakhs, 32 thousand, and 350 which NTA estimated to be around 82 crores.
In the “B” too, Subisu proposed earned it to carry through the project with a further 5% off. This lowered the investment at 38 crores, 44 lakhs, 95 thousand, and 732. For internet installation in each household, only Rs.608 would be charged per customer.
The universal impact of COVID-19 also affected Subisu’s broadband projects. The ISP has reasoned that adverse weather conditions and COVID-19-forced lockdowns slowed the pace of the project. It had requested NTA to grant additional duration which but was declined.
Subisu claims it has completed ONT installations but NTA is not ready to pay for it. This seems to have derived the saga between the two entities.
As NTA insisted against the payment, Subisu asked for compensation in arbitration totaling 92 crores, 78 lakhs, 1 thousand, and 680. The company has demanded 11 crores, 19 lakhs, and 12 thousand for ONT installations.
Similarly, Subisu has laid claims for a whopping 31 crores, 86 lakhs, and 85 thousand in compensation for the losses it bore on ONT for internet points.
Subisu has also demanded 55 lakhs, 95 thousand, and 600 from NTA for payment delay. It is also seeking 17 crores, 62 lakhs, 89 thousand, and 600 for failed ONU in Package A, and for failed ONU works another 29 crores, 90 lakhs, and 5 thousand. Besides, Subisu is claiming another 88 lakhs, 14 thousand for delayed payments, and another 15 lakhs for legal procedure.
NTA has seemed keen on Subisu’s compensation verdict. It is adamant about battling it out with the private ISP. Meanwhile, Subisu has not backed away from its demands for compensation. For now, Subisu has not responded after NTA lodged its appeal at the Patan High Court.
We will keep you updated on this news as the case progresses. Do share your opinion on this dispute between the regulatory body and the ISP.