Vianet has paid Rs 55 crore in Rural Telecommunications Development Fund (RTDF) and royalty fees to the Nepal Telecommunications Authority (NTA) for up to FY 2080/81. The company made the payment after Nta told all ISPs to pay their RTDF and royalty amount.
Earlier, the company paid Rs 39.50 crore to the authority in RTDF and royalties. As per the Telecommunications Act, 2053, ISPs need to pay 4% in royalty and 2% in RTDF annually.
The RTDF and royalty fees payment was controversial. ISPs felt that they won’t have to pay the two fees on maintenance. However, after the Supreme Court directed that royalty and RTDF should also be on maintenance charges, Vianet quickly followed the ruling.
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Vianet submits RTDF and royalty fees
Vianet says that the payment clears all the dues to Nta in RTDF and royalty. As of now, only two ISPs have paid the RTDF and royalty fees to the authority for FY 2080/81.
Vianet Chief Financial Officer (CFO) said, “The Supreme Court’s verdict has eliminated confusion. We are delighted at fulfilling our duties and are committed on providing customers with the best services.”
The move follows strict instructions from NTA to service providers to pay off their dues.
Paying off the arrears to the government eases the ISP’s proceedings. It will also facilitate the process for its license renewal process. In prior events, NTA issued strict warnings to ISPs on account of their failure to pay off their RTDF fees. This was notable just recently as well. However, the ISP’s payment eases its proceedings with the government.
The company was launched in 1999 and since then has become a household ISP for customers. The company is the first in Nepal to launch fiber internet, IPTV service, and a 2 Gbps internet package, among others.
