NT pays Rs 2.5b renewal fee in first instalment

Nepal Telecom (NT) has paid Rs 2.5 billion, the first instalment of licence renewal fee, to the government. The NT board, about two weeks ago, had decided to pay the renewal fee in eight instalments as prescribed by the government. The board had decided to pay the first instalment after Ncell, the private sector mobile service provider, paid the same amount of money in the first instalment on December 21 last year. As per the conditions required to operate the GSM mobile service, the state-owned company has to pay the government Rs 20.13 billion for renewing its licence.

“We paid the first instalment on Tuesday,” said Guna Kesari Pradhan, NT spokesperson. She said the Telecom would be clearing the dues annually in the remaining seven instalments. Of the total, NT now owes the government around Rs 18 billion in renewal fee for operating the GSM mobile service for 10 years (1999-2009).

NT had disbursed Rs 189 million four years ago when the Nepal Telecom munications Authority (NTA) renewed its licence “provisionally” under pressure from NT and its trade unions. Similarly, Ncell will have to pay remaining Rs 17.63 billion within the next seven years.

The NTA had directed both NT and Ncell to pay the renewal fee in instalments as per the provision set by the government. Based on the recommendation of Minister for Information and Communications Raj Kishor Yadav-led taskforce, the Financial and Infrastructure Committee of the Cabinet in September last year had decided to collect committed royalty and licence renewal fees from telecom operators on eight-year instalment basis. Following this decision, the Communications Ministry and the NTA had directed NT and Ncell to pay the renewal fee as the conditions require them to renew their operating licenses after 10 years. NT’s licence for the first 10 years had expired in 2009 and Ncell’s is expiring in 2014.

An official at the NTA said though it was late, the telecommunications authority was successful in collecting renewal fee partially from NT who was supposed to pay all Rs 20.13 billion four years ago. “Earlier, NT and Ncell had been pointing fingers at each other to pay the fee first,” said the official.

The instalment provision had made it easier for another operator United Telecom Limited (UTL) too for clearing the dues to the government. Immediately after the Cabinet decision, it had paid the first instalment of the committed royalty of Rs 204.18 million to get its licence renewed. According to the NTA, with the payment of the first instalment, UTL now has to pay the committed royalty dues of Rs 1.42 billion.