License Issuance For Internet Service Providers Made Strict

18th July 2020, Kathmandu

Nepal Telecommunications Authority (NTA) has now tightened the rules for issuing licenses for internet and email services by implementing new regulations.

According to the new regulations, a person or organization aiming to operate internet service should now have a paid-up capital of at least Rs. 40 million.

Furthermore, a chartered accountant needs to certify the amount and the equivalent should be own property.

The new regulations make it mandatory for companies to submit a business plan of at least 5 years.

Moreover, the companies need to clarify their marketing aspect, management aspect, and technical aspect in the business plan. And, at least one of the operators or chief executives must hold at least 7 years of business experience.

On the technical side, the use of bandwidth, frequency, network details, and so on is required.

In addition, the company that wants to secure the permit must have the minimum equipment and system connected. The authority will monitor and verify these requirements.

NTA has also explained the equipment necessary for the company that wants to provide such services. According to the new regulations, service providers should have at least 17 types of equipment and systems.

In fact, NTA has stated that it won’t issue a license if the equipment and system are not available.

Similarly, the new regulations stipulate that foreign-invested internet service providers must invest at least 20% (Nepali).

Most importantly, service providers must ensure the confidentiality of customers’ conversations and messages. No details of customers must be disclosed to third parties.

Purushottam Khanal, Chairman of NTA, said that those who come to get a license for the internet (including email) service must abide by the provisions of the new regulations.

The new regulations have implemented from Friday (Shrawan 2). He further informed that the existing service providers must follow the new regulations at the time of renewal.

“Now the old ones will have to increase their capacity to get the ISP’s license and the new ones will have to complete the process,” Khanal said.

He also claimed that the new regulations would help in the operation of quality services.

Do you agree with Chairman Khanal?

Share your thoughts in the comments!

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