10 August 2024, Kathmandu
The Nepal government has withdrawn approximately 14 billion rupees from the Nepal Telecommunication Authority, plunging the agency into a severe financial crisis.
Nepal Telecommunication Authority Financial Crisis
This substantial withdrawal was executed as part of a budgetary arrangement to transfer funds from the authority’s account to the federal accumulated fund.
Dr. Pradip Paudyal, Assistant Spokesperson for the authority, confirmed that the funds were deposited into the government account on August 9, in line with a provision from the 2078/79 fiscal year budget. This move has left the authority with minimal funds, sufficient only to cover employee salaries and allowances.
The financial strain is expected to hinder the authority’s ability to manage existing programs and undertake new projects. Previous attempts to amend the relevant legal provisions have been unsuccessful, despite repeated requests from the authority’s Chairman Bhupendra Bhandari and other officials.
The government’s decision to extract such a large sum has sparked concerns about the future operational capacity of the telecommunication regulator.
About Nepal Telecommunication Authority
The Nepal Telecommunication Authority (NTA) is the national regulatory body overseeing the telecommunication sector in Nepal. Established under the Telecommunications Act of 2053 (1997), the NTA’s core mission is to promote and regulate telecommunications services to ensure their development and equitable distribution throughout the country. The authority is responsible for granting licenses to service providers, setting technical and service standards, and fostering competition within the industry.
The NTA plays a crucial role in managing the country’s telecommunication infrastructure, which includes overseeing mobile and fixed-line services, broadband internet, and emerging technologies. It aims to enhance service quality, increase access in remote and underserved areas, and protect consumer interests. Additionally, the authority facilitates the introduction of innovative technologies and services to meet the evolving needs of the public.
By balancing regulatory oversight with industry development, the NTA seeks to support the growth of Nepal’s telecommunication sector while ensuring that all stakeholders adhere to established norms and standards. Despite facing challenges, including financial constraints and policy adjustments, the NTA remains central to shaping the future of telecommunications in Nepal.