11th June 2023, Kathmandu
In an effort to address the issue of illegal import, sale, and distribution of mobile phones in Nepal, the government has introduced the Mobile Device Management System (MDMS).
This initiative aims to ensure the legitimate use of mobile devices, enhance the tracking of stolen or lost phones, and crack down on unauthorized activities in the mobile phone market.
The implementation of MDMS enables Nepal Telecommunications to establish a more systematic approach in addressing these issues, leading to better control and monitoring. The system streamlines the registration process for mobile phones brought into Nepal for personal use from abroad, ensuring compliance with legal procedures and revenue facilitation.
The MDMS software incorporates key features such as facilitating mobile set registration and enhancing security measures. Its primary objective is to provide accurate information to the public, eliminating any incorrect information or confusion through interactions and press conferences. This promotes transparency and clarity regarding mobile phone regulations in Nepal.
Mobile phones have become an essential commodity in Nepal, with a significant amount of revenue generated through their import and sales. However, the government has been losing approximately Rs. 3 billion in revenue annually due to unauthorized sales and evasion of customs duties. Additionally, the illegal import of phones poses risks to consumers, as some devices may be stolen or counterfeit.
The implementation of MDMS offers several benefits:
Revenue Generation:
The government aims to collect an additional 3-4 billion rupees annually through the proper regulation of mobile phone imports and sales.
Consumer Protection:
The system helps prevent customers from being deceived by counterfeit or low-quality phones, ensuring they receive legitimate products.
Support for Police Investigations:
The Nepal Police will have access to accurate information regarding mobile phone users through the MDMS, assisting them in criminal investigations.
Support for Traders:
By addressing the issue of unauthorized phone imports, the system creates a more stable business environment for traders, preventing declining businesses and financial burdens.
Potential Price Reduction:
If the government can arrange for a 100% excise duty and VAT refund, mobile phones in Nepal could be provided at a lower price compared to other countries, benefiting consumers.
The Nepal Mobile Distributors Association and Mobile Phone Importers Association have expressed their support for the implementation of MDMS, recognizing the positive impacts it will have on the mobile phone industry in Nepal.
With the MDMS in place, it is expected that the price of mobile phones will not increase, as the manufacturing companies and traders will bear the costs, ensuring consumers are not burdened with higher prices.
This initiative aims to create a more regulated and transparent mobile phone market in Nepal.
