30 August 2024, Kathmandu

Ncell, a leading telecoms service provider in Nepal, has been granted the facility to pay its license renewal fee in four installments.

Ncell Granted Installment Plan

The decision was made during a Cabinet meeting on Thursday, which approved the installment payment with specific conditions.

According to government spokesperson Prithvi Subba Gurung, the first installment will be exempt from interest, while the second, third, and fourth installments will incur a 10% interest rate. This decision offers significant relief to Ncell, as the company had already paid NPR 4 billion as an advance payment towards the total renewal fee of NPR 20 billion.

Ncell had submitted its license renewal proposal to the Nepal Telecommunications Authority (NTA) on March 28 of last year. The company requested the installment payment facility, citing that a similar facility had been granted to Nepal Telecom in the past.

Telecom service providers in Nepal are granted a new license for 25 years, with no renewal required for the first 10 years. After this period, they must renew the license three times, each after five years. This is Ncell’s third renewal, which will allow the company to continue its operations for the next five years.

The NTA had repeatedly requested Ncell to pay the remaining fee in a lump sum. However, Thursday’s decision allows Ncell to settle the amount in installments, providing the company with the financial flexibility to maintain its services.

Previously, Nepal Telecom had also been granted similar installment facilities for its license renewals, which made it easier for the government to approve Ncell’s request.

This decision not only provides Ncell with financial ease but also helps ensure the continuity of its services, contributing to maintaining competition in Nepal’s telecommunications sector and delivering quality services to consumers.

Criticism of the Decision

There has been some criticism of this decision, with claims that the government has shown preferential treatment to Ncell. Critics argue that, unlike Ncell, Nepal Telecom was not charged any interest or penalties during its third license renewal after five years when it paid NPR 20 billion in a lump sum. Additionally, no interest or penalties were imposed on Nepal Telecom for its previous renewals when it was granted installment facilities.

While the government’s decision offers Ncell financial relief and operational continuity, it has also sparked debate about the fairness of its treatment of different service providers. Nonetheless, the decision is expected to have a positive impact on the telecommunications industry in Nepal by ensuring continued service and healthy competition.

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