Ncell allowed to renew license with interest rate of 10 percent

KATHMANDU, AUGUST 29: The government has decided to renew Ncell's license with an annual interest rate of 10 percent on the renewal fee. This decision was made during a Cabinet meeting held this evening (Thursday).

The private telecom operator had requested to pay the fee for its third license renewal in five instalments over five years. The company has already paid the first instalment of NPR 4 billion to the Nepal Telecommunications Authority (NTA) on May 27.

This latest decision by the government is expected to temporarily resolve the ongoing dispute over Ncell's license renewal. However, it also highlights the discriminatory treatment between private and state-owned companies, according to some experts.

Nepal Telecom, a government-run entity, was allowed to pay the renewal fee without any interest or penalties after five years. In contrast, the concerned authorities are imposing both interest and penalties on Ncell.