- Ncell's mobile service license was renewed for five years after paying Rs 5.29 billion.
- The payment was made in three installments, totaling Rs 20 billion with interest.
- Ncell has a remaining balance of over Rs 12 billion due by Bhadra 15, 2084.
Nepal Telecommunications Authority (NTA) renewed the mobile service license of Ncell for five years. The telco authority renewed the license of the private telco after the latter paid Rs 1 billion more to total Rs 5 billion in the first installment. Now, the telco has paid Rs 5.29 billion including fines as part of its second installment.
In its second installment, the company paid Rs 2 billion in Asar and Rs 3.29 billion in Bhadra. The total amount included the stipulated 10% in interest rate.
Ncell was granted its license renewal after the company paid Rs 1 billion. The operator paid Rs 4 billion as part of its first installment on Jestha 14, 2081, lawfully three months before the expiration of its license. The company was sent its license document on Sunday, Bhadra 16 (September 01, 2024).
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Ncell mobile service license was renewed with 4 installment payment facility
NTA permitted Ncell to pay its license renewal fee of Rs 20 billion in four installments. So, now it has over Rs 12 billion to pay to the authority by 2084 Bhadra 15. Ncell is required to pay Rs 5 billion in each installment over two installments. Likewise, the company has to pay 10% interest on the remaining amount every year. The cabinet meeting on Thursday, Bhadra 13, 2081 headed by Prime Minister KP Sharma Oli.
According to Paudel, Ncell can pay off its remaining license renewal fee before the provided timeframe if it chooses to. Ncell’s GSM mobile service license was to expire on Bhadra after reaching 20 years in service.
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Our conclusion
Finally, the government has put an end to a saga over Ncell’s license renewal. It’s a relief to all, Ncell, NTA, the government, and also the telco’s paying customers that its services will continue. Earlier, the telco had expressed concerns over discrepant treatment from NTA in regards to interest on license payments. The generous installment facility given to Ncell should conclude the longstanding skirmishes between the telco and the government.
Likewise, the facility to Ncell also translates to positive references for Ncell’s contribution to Nepal’s connectivity and digital transformation. Ncell is Nepal’s leading telecom company with around 40% share in market proportion. It provides 4G, eSIM, VoLTE, VoWiFi, Facebook basic mode, and various other digital services. Since its inception, the company has contributed to the government with Rs 320 billion in taxes and non-tax revenues.
Drop your opinion: Are you happy that NTA has finally renewed the license of Ncell and put an end to the entire saga over the matter? Or do you think the Rs 20 billion renewal fee is unjustifiable in current times? We would love to hear your input in the comment section below.
