Ncell appeals Balen government for share transfer and license issues

Last Updated on July 23, 2026

Nepal’s leading operator Ncell has knocked on the office of the Prime Minister requesting a review of the decision relating to ownership and a resolution in the share transfer saga involving the former owner Axiata and the current major stakeholder, Spectrlite UK Ltd. The company has submitted a letter to the Office of the Prime Minister and Council of Ministers requesting that the government revisits the cabinet decision and conditions imposed by the Nepal Telecommunications Authority (NTA).

The company says that it resorted to the latest outreach to the PM office after its earlier letter received no response. Previously, it had submitted the letter with similar requests on Poush 23, 2082.

According to Ncell, resolving the issue promptly is important not only for the company but also for Nepal’s investment climate, telecom sector, and more than 14 million mobile subscribers who rely on its services.

Ncell questions previous government decisions

Ncell argues that the Cabinet decision of Falgun 6, 2080 regarding the approval of its parent company’s share transaction is inconsistent with Nepal’s laws. The company also claims that the ownership-related conditions imposed by the NTA while renewing Ncell’s operating license should be reconsidered. The company demands that the 10th amendment to the Telecommunications Regulations, 2054, receive a reassessment by the current government of Balen Shah.

Ncell believes that these decisions from the authorities restrict constitutional rights and contradict provisions of the Foreign Investment and Technology Transfer Act, 2075. The telco fears that these decisions could negatively affect Nepal’s overall investment environment. The company has requested the government to review these decisions and issue necessary directives to the concerned authorities.

Background: Ncell ownership dispute

Ncell’s ownership has become a topic of dispute ever since Axiata sold its shares to Spectrelite UK in 2080. It has been established that the transaction between the seller and the buyer required prior regulatory approval, and several conditions have been imposed while renewing the telco’s license. The matter also reached the Supreme Court as a writ was registered calling for the transaction to be overturned.

However, recently, the Supreme Court dismissed the writ. Now, the decision regarding Ncell’s ownership is in the hands of NTA.

What is Ncell requesting from PM Balen Shah’s office?

In its latest letter, Ncell has requested the Balen Shah government to:

• Review ownership conditions: Ncell wants the government to review the ownership-related conditions imposed through the Cabinet decision of Falgun 6, 2080, and the NTA’s licence renewal conditions of Bhadra 16, 2081, calling them unfair and inconsistent with existing laws.
• Recognize the share transfer: Ncell says the Axiata–Spectrlite UK deal involved its parent company’s shares, not Ncell’s shares, so prior NTA approval was unnecessary. It adds that all required documents have already been submitted.
• Accept the buyer’s capability: The company says the buyer’s technical, financial, and managerial qualifications have already been verified by the Department of Industry and the NTA, which renewed Ncell’s licence.
• Waive interest on licence fees: Ncell requests the government to waive interest on its licence renewal fees and provide equal regulatory treatment with Nepal Telecom.
• Clarify telecom policies: The operator seeks clearer rules on licensing, renewal fees, spectrum allocation, service conditions, and the responsibilities of telecom operators and ISPs.
• Ensure licence continuity: Ncell wants assurance that it can continue operating beyond its 25-year licence period, citing customer service, jobs, government revenue, foreign investment, and future 5G/6G deployment.

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Ncell says transaction was between shareholders

One of Ncell’s key arguments in its letter is that the Axiata-Spectrlite UK transaction took place at the shareholder level rather than through a direct sale of Ncell’s shares. The company says it nevertheless informed the Department of Industry and NTA and submitted documents related to the buyer’s technical, financial, and managerial capacity.

The company also says that the NTA renewed its license in 2081 after assessing these capabilities, arguing that this itself demonstrates regulatory satisfaction with the new shareholder.

Company warns of wider industry impact

Ncell argues that failure to resolve its ownership and license issues could have broader implications beyond the company itself.

The operator says uncertainty surrounding its ownership and license could discourage foreign direct investment in Nepal, affect confidence in the country’s regulatory environment, and delay investment in next-generation technologies.

Ncell also argues that maintaining uninterrupted operations is important for its 14 million customers, over 100,000 direct and indirect jobs, continued government revenue, and Nepal’s broader digital economy. The company says uninterrupted license continuity would also support future investments for 5G in Nepal, 6G, AI-enabled infrastructure, and digital services.

What happens next?

The Prime Minister’s Office, the Ministry of Communication and Information Technology, and the Nepal Telecommunications Authority might consider Ncell’s requests. The telco is instrumental for the country’s digital transformation and economy. Also, since it’s the only private telco in Nepal, the government may take the matter seriously.

With the Supreme Court already directing that the matter be resolved through the appropriate legal process, attention will now be on whether the government decides to review its previous decisions and bring the long-running ownership dispute to a conclusion.

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FAQs on Ncell’s letter to PM Balen Shah’s office for share transfer, ownership and license issues