In a recent development, the Nepali government has decided to grant Ncell, the private sector telecom giant, the option to pay its license renewal fee in installments. This decision, made during a Cabinet meeting on Thursday, comes just days before the company’s license is set to expire on Sunday.
The Installment Plan
According to Minister for Information and Communication Technology Prithvi Subba Gurung, who also serves as the government spokesperson, Ncell will be allowed to pay the renewal fee in four annual installments of Rs5 billion each. Here’s what you need to know about the arrangement:
- The company will pay Rs5 billion per year over four years
- A 10% interest rate will apply to three of the four installments
- The first installment will be interest-free
Minister Gurung stated that the government will instruct the Nepal Telecommunication Authority to implement this decision.
A Controversial Practice
This isn’t the first time the government has offered installment facilities for license renewal. However, previous arrangements didn’t include interest charges for the second and third tranches.
It’s worth noting that the Office of the Attorney General had previously advised against this practice. In a report, they suggested discontinuing installment options, arguing that it goes against the law and results in significant losses to state coffers.
Ncell’s Request and Initial Response
The decision comes three months after Ncell approached the Nepal Telecommunication Authority, requesting an installment option for the renewal fee. At that time, the regulatory body informed the company that existing laws didn’t allow for such an arrangement. The authority had also notified the ministry about Ncell’s correspondence.
What This Means for the Telecom Landscape
This decision raises questions about fairness in the telecom industry and the government’s approach to managing major private sector players. As Ncell prepares to renew its license under these new terms, industry observers will be watching closely to see how this impacts the competitive landscape and regulatory environment in Nepal’s telecommunications sector.
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