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NTA Revokes License of Hello Nepal Owned By Ajay Sumargi

NTA has revoked the license for Hello Nepal the second time after the telco fails to pay its royalties installments in the stipulated time. The action comes after Ajay Sumargi owned telecom company (Nepal Satellite Telecom) failed to pay its Rs.34 crores (appr.) in royalties in its second installment by Ashar 2078. Find more info on the cancellation of Hello Nepal’s license.

Previously, NTA had decreed Hello Nepal to pay 1.39 Arab (appr.) in five years’ installments. The satellite company has yet to pay its dues for frequency, royalties, RTDF, and license renewal dues to NTA.

A board meeting if NTA on Kartik 5 had decided to seek a response from the telco about the unpaid due charges by Ashar.  Then on Kartik 12, the telecom authority then demanded clarification from the embattled telco within 15 days.

In response, Hello Nepal reasoned that NTA couldn’t revoke its license again as it was granted an extension from the Council of Ministers to pay off its dues in 5 years’ installments.

NTA spokesman Santosh Poudel says, it didn’t receive a convincing response from “Hello Nepal”, and continuing the same rationale from 2076 BS, the authority revoked its license. NTA Board executed Telecommunications Code 053, Schedule 28 Article 930 to implement its decision from Friday (November 28) onwards.

Read: Four Companies Shortlisted For Nepal’s Satellite Launch

This is Hello Nepal’s Second License Revocations

This is the second time Hello Nepal’s license has been revoked by NTA. In 2076, the telecom authority had stripped the telco of its authorization. However, the telecom company appealed for a review of the verdict by NTA.

There is a provision in Nepal’s Telecommunications Act that a telecom company can submit an application within 35 days to the Council of Ministers to review the license revocation. As per this provision, the CoM had reversed NTA’s decision in Hello Nepal’s favor.

Read: NTA to cancel the license of telcos not clearing the dues

A meeting of the Council of Ministers on Poush 21, 2076 had offered a reprieve to the telco. AS per the decision, Hello Nepal had to pay its first installment in the then FY and the rest in installments within the next five years. If failed to pay within the stipulated period, the license would have been revoked.

Hello Nepal’s 5 Years’ Installments

Council of Ministers dictated that Hello Nepal was subject to pay 1 Arab, 38 crores, 72 lakh, and 53 thousand in five years’ installments. In its first installment, the company has paid 21 crores, and 51 lakh in Ashar 2077.

In its second installments, the company was stipulated to pay 33 crores, 98 lakh, by the end of Ashar 2078. Similarly, 30 crores, 86 lakh in the third year, 27 crores, and 74 lakh in the fourth year, and 24 crores, and 63 lakh in the fifth year to fulfill its financial liability.

S.N.YearHello Nepal’s Liability
11st Rs.21,51,000
22ndRs.33,98,000
33rdRs.30,86,000
44thRs.27,74,000
55thRs.24,63,000
TotalRs.1,39 BN (appr.)
Hello Nepal’s 5 year’s installments

The second license revocation comes amidst Hello Nepal’s failure to fulfill the payment obligations of its second installment.

Hello Nepal is Nepal’s total six of telecom companies but has been out of operations for a long time. The company had narrow service coverage in Mid-western and far-western regions but didn’t sustain.

The Sumargi-owned telco is financially stagnant and may not survive the latest clampdown by NTA again.

Check out: NTA to slash interconnection charges for cheaper interoperator calls

What do you think of Hello Nepal’s ill-fated journey in Nepal’s telco sphere? Should it pay off its dues and start off anew or shelve its service altogether? Do leave your opinions in the comments below.

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