Last Updated on March 12, 2025
The government of Nepal could lower license renewal fee for telecom companies. The communication minister Prithvi Subba Gurung called the current renewal fee of Rs 20 billion impractical and admitted that it’s not helpful for the industry.
Speaking at a program organized by the Society Of Economic Journalists (SEJON) on March 12, 2025, the minister said, “Revenues coming from the telecommunications industry are decreasing. We have taken this matter seriously.” He declared, “A renewal fee of Rs 20 billion can’t help sustain the industry.”
Currently, Nepali telecom companies need to pay Rs 20 billion for five years in license renewal. The provision is held in the Telecommunications Act, 2053. Gurung said that the government is revising the regulatory act with new and friendlier provisions. He reiterated the seriousness of the government to make amendments to help the telcos restore their financial feasibility.
Speaking of license renewal, Ntc paid Rs 20 billion for a new license back in Baisakh 2081. In Jestha 2081, Ncell paid NTA Rs 4 billion for license renewal. It will pay the remaining Rs 16 billion dues in 4 installments.
Ncell CEO Kayumov reflects on worse telco industry condition
On the same occasion, Ncell CEO and MD Jabbor Kayumov, expressed concern over the financial struggles of the industry. He reflected that when he moved out of Nepal in 2016, the industry was flourishing. He said that the current situation is worrying.
Kayumov also suggested that the government revise its policy to attract foreign investment. Let’s recall that Malaysian telco group Axiata exited Nepal citing challenging business environments in Nepal. The Telco Act 2053 holds that a company with 80% stakes of a foreign entity will come under state ownership after 25 years. This policy and the license renewal fees have remained two of the hot topics for the industry stakeholders.
Industry expert Mohan Kumar Bhatta urged the government to take lessons from India, Bhutan, and Bangladesh. He stated that companies have invested big on 4G but are not able to generate decent revenues. He advises the government to reconsider regulatory policies and various taxes and fees. The revision will also include the radio frequency policies of Nepal.
Also: Challenges of Telecom operators in Nepal
NTA chairman Bhandari admits need to lower telecom license fee
Nepal Telecommunications Authority (NTA) Chairman Bhupendra Bhandari admitted to the big tax burden on telecom companies. He acknowledged the need to lower charges, including the fees for telecom license renewal. He said, “We need to end the provision of telecom companies having to pay up to 48% of their revenue in various taxes. The current tax system is not market-friendly. We need to make the telecom tax system relevant to the current time and need.”
Bhandari also hinted at bringing a provision for infrastructure sharing to reduce expenses for the operators. For the same, Nepal Telecom is shutting down 2G on the 1800 MHz band. The private telco Ncell is also switching off 3G in 2025 to refarm resources on 4G.
