Last Updated on April 7, 2025
CG Telecom owned property worth Rs 1.35, but there seems to be no effort on its proper management even though it’s out of service. The telco’s infrastructure has been without operational license and also any use even a year after Nepal Telecommunications Authority (NTA) revoked its license.
It’s worth noting that CG lost its rural telecom license due to its failure to pay dues to the regulator, NTA. But the telco’s gears were bought with loans from the government. Nepal’s telecom industry operates as per the Telecommunications Act 2053. It holds that NTA has authority for the management of a telco’s assets after its license revocation. In accordance with this same law, NTA is managing the Smart Telecom asset. But there’s been no progress on CG’s telco infrastructure.
In other words, NTA has not actively started exploring the details of assets that were owned by CG Telecom, even after delegitimizing it.
CG Telecom got its license transferred from STM Telecom Sanchar Pvt. Ltd. for rural telecommunications service. STM had received a grant from the government as a foreign loan. It was responsible for the expansion of telecom services in the then Eastern Development Region. The company bought its equipment with the grant funds.
CG Telecom asset management under scrutiny
CG received USD 11.865 million, which translated to Rs 1.35 billion in the then exchange rates. The company used much of the amount in the purchase of VSAT equipment. Such gears could still be of use for banks for connectivity in rural areas. So, they are not completely irrelevant or obsolete.
Santosh Paudel, NTA spokesman, says on this matter, “It is an old issue and the technology is no longer in use. The company itself didn’t come forward for its renewal. So, its license was revoked. There was no progress on the grant. It was not even in service.”
Likewise, MoCIT chairman Gajendrakumar Thakur says that “the authority for asset management of CG Telecom lies with the regulator. So, the communication ministry can’t immediately say anything on the matter.“
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The statements sum up that the government can do more in the management of CG Telecom’s assets. The company is less likely to obtain a license to operate telecom services currently. Therefore, the government could do something to explore the status of the company’s asset and determine their possible usage if there is any.
