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Ncell faces license expiration threat as NTA pushes for full renewal payment


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KATHMANDU: The Ministry of Information Technology and Communication as well as Ncell Axiata Limited have received an urgent notification from the Nepal Telecommunication Authority (NTA) with just six days remaining before Ncell's license to operate telecommunication services expires. Ncell has been reminded multiple times, but it still hasn't paid the entire renewal price required to keep its license active.


The NTA has reached out to the Ministry to alert them of the impending expiration and the lack of payment from Ncell. Additionally, the NTA has requested that Ncell complete the renewal process by submitting the full fee promptly. Ncell had previously requested to pay in installments after making a partial payment, but the NTA does not have the authority to grant such accommodations.


Santosh Paudel, NTA Spokesperson, stated that while the government had extended installment options in the past, the NTA itself cannot approve such requests. The urgency is heightened due to the imminent expiration of the license and Ncell's failure to meet its financial obligations fully.


Ncell’s situation is further complicated by ongoing scrutiny over issues like share transactions and frequency allocation by a government-appointed research committee. While Ncell has sought a concession on the renewal fee, it has not addressed other financial obligations, such as taxes and state fees. The NTA has requested that Ncell pay the remaining balance and complete the renewal process.


Ncell's license is scheduled to expire on August 31st in accordance with the Telecommunication Act of 2053 and the Telecommunication Regulations of 2054. Ncell only paid NPR 4 billion toward the renewal, even though it was supposed to pay NPR 20.13 billion by May of last year. By August 31, an additional fifteen percent fee is required. If these conditions are not met, Ncell's license may be revoked and there may be a state takeover, similar to what happened to Smartcell.


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