11th August 2023, Kathmandu
In a significant development, 48 prominent internet service providers, including Classic Tech, Subisu, Broadlink, and Mercantile, have come under scrutiny for failing to submit their revenues to the government.
The Nepal Telecommunications Authority (NTA) issued a stern notice on Wednesday, urging these companies to comply with their financial obligations promptly.
The NTA’s notice highlights that these internet service providers have not fulfilled their obligations to pay royalties and contribute to the rural telecommunications development funds, as mandated by the Telecommunications Act of 2053.
This act stipulates that telecommunication and internet service providers with regulatory licenses are required to deposit four percent of their total income as royalties and an additional two percent into the government account for rural telecommunications development.
Despite repeated requests from the NTA, these companies have not submitted the necessary financial disclosures and payments.
According to the authority, the outstanding amounts were expected to be settled by the end of July 2078, failing which the service providers were instructed to clearly disclose their names and financial information for the relevant fiscal year.
Additionally, the required amounts were to be deposited into specified bank accounts along with supporting receipts.
The authority has emphasized that the deadline for paying royalties and rural telecommunications development funds for the fiscal year 2078/079 was in January 2079. However, a substantial number of internet service providers have yet to fulfill this obligation.
The notification from the NTA further warns that failure to deposit the required amounts within the stipulated time frame will result in actions being taken in accordance with the applicable rules and regulations.
This situation has raised concerns within the telecommunications industry and among consumers alike, as these financial contributions play a vital role in supporting the development of rural telecommunications infrastructure and overall industry growth.
As the deadline has passed and the NTA’s notice remains in effect, stakeholders are closely watching for further updates on whether these internet companies will rectify their non-compliance and fulfill their financial obligations to the government.
