Govt obtain right to implement telecom policy

Kathmandu, April 10 – CIAA (The Commission for Investigation of Abuse of Authority) has cleared way for the government to issue the unified telecom licence to interested small telecom companies.

After its investigation, the anti-graft body on Monday decided that the government can implement the Radio Frequency Distribution and Pricing Policy 2012. Two weeks ago, the CIAA had directed the government not to implement the policy, warning of possible loss in revenue from licence renewal fees fixed in the policy.

As per the government provision, once a company obtains the licence, it can provide service for 25 years. However, after 10 years of service operation, the company has to renew the licence every five years for three times. According to the CIAA, the Telecommunications Act and Telecommunication Regulation has no clear provision regarding the collection of licence renewal fees for the second and third licence renewal

Unified telecom licence holders can provide multiple telecom services, including the nationwide GSM service. Attracted by the licence, the country leading business house—Chaudhary Group (CG)—has also ventured into the telecom business buying an 80 percent stake in STM Telecom.

The policy implemented by the government six months ago mainly says the licence holders of the ‘basic telecom service’ will have to pay the renewal fees in 10 annual instalments. As per the licence renewal fee payment schedule in the policy, companies have to pay Rs 3.50 billion in 11 yearly instalments and the remaining Rs 13.13 billion before licence renewal in the 10th year.

On the basis of the report of the study, the NTA board will decide whether to issue the unified licence.