Nepal Telecom submits application to NTA for GSM mobile service license

The state-backed telecom giant Nepal Telecom (NTC) has submitted an application at the Nepal Telecommunication Authority (NTA) as it seeks a new GSM mobile service license. The company’s move seeks to ensure a swift license renewal process which has seen protracted issues involving other operators. The new steps to obtaining the license were also shared at its 20th anniversary.

The company’s GSM mobile service license expires in 2081. The Telecommunication Act, of 2053 holds that a telecom company comes under state ownership after 25 years if its majority of shares are owned by a foreign individual or institution. Ntc, though is a Nepali-owned company with over 90% stocks of the government.

Nta confirms Nepal Telecom steps for a new GSM mobile service license
The company sent its application to NTA for mobile service license renewal on Magh 28, NTA Spokesman Santosh Paudel confirmed the move. However, he also said that no steps have been taken so far on that matter. Paudel said that Ntc is seeking a new license by paying Rs 21 crore.

Understandably, Nepal Telecom has been proactive in securing its license for GSM service. In Baisakh 2080, the company sent a letter to NTA expressing its desire to continue its cellular service and asked the regulator to facilitate the environment for a license. Sending the letter conforms to the Act where a company must make it clear whether it wants to continue with the service 3 months before its term comes to an end.

NTA is the sole regulator of communication systems in Nepal. Therefore, Ntc comes under its direct regulation for license, service, quality of service, etc. Ntc obtained its GSM mobile service license on Baisakh 29, 2056. That means it’s reaching the expiration on Baisakh 28, 2081.

There are no clear provisions too
Obtaining a license for its GSM cellular mobile service could prove to be a complex job for the company. There is no clear provision on how to process a new license for companies that have completed 25 years of service. Therefore, it’s likely that the NTA itself will undertake internal homework on the process. This is also the likely reason that it has not taken any step forward in response to Ntc’s letter.

There has been a lot of speculation that the very rule of the 25-year ownership led to Axiata’s exit from Nepal. UTL and Smart Telecom also lost their license after they failed to comply with the often-criticized rigid and high license costs. Nepali Telecom