The Office of the Auditor General (OAG) has suggested the government that it should collect the remaining license renewal fees from Nepal Telecom (NTC) and Ncell with additional charges for late payment. The office made the suggestion in its annual report for 2082.
The OAG report 2082 shows that both Ntc and Ncell shall pay the remaining amount to the government for renewal fees and re-license certificates.
OAG report holds that the second license renewal period of Nepal Telecom was due to end on 25 Baisakh 2076.
Three months before that period, the renewal fee of Rs. 20 billion was to be paid (by 25 Magh 2075) and an application for license renewal was to be submitted. Out of the Rs. 20 billion, Rs. 18.90 crore was paid on time.
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However, the remaining Rs. 19.81 billion was paid only on 25 Baisakh 2081. It meant that the company couldn’t make that payment on time.
Therefore, the office states that the government shall collect an additional Rs. 2 arba, 97 crore, 16 lakh, and 50 thousand from the telecom giant at the rate of 15 percent.
Similarly, private sector company Ncell (Ncell Axiata at the time) received a license for 10 years on Bhadra 16, 2061. The private telco is to pay Rs 20 arba by 2081 Jestha 15 to renew its license for the third time for 5 years.
However, Ncell only paid Rs. 6.40 arba for its license renewal. So, the report mentions that the government should collect the remaining Rs 13.6 arba with additional fees.
Also: Ntc, Ncell adopting subscription model/plan in Nepal
OAG Report 2082 wants Ntc and Ncell to pay license fee with additional charges
The OAG mentions that both companies failed to pay the renewal fee to the government on time. As per Rule (12) of the Telecommunications Regulations, 2054, they are required to submit an application to the Telecommunications Authority after paying the agreed renewal fee while renewing the license.
The report states that if the renewal is not transacted on time, the license can be renewed by charging additional fees.
The report sheds insight into one of the concerns of the industry- huge payable to the government in taxes and policies. Telcos need to pay Rs 20 billion for license to continue their services.
Besides, the market is seeing lows in revenue from voice. OAG report shows that the fees the companies need to pay is becoming a liability to sustain and improve their services.
Ncell CEO Jabbor Kayumov even says that investment in 5G is difficult with current financial situation. So, the government Nepal Telecommunications Authority (NTA), and telcos should find a common and win-win resolution on this.
