Ncell Faces Crucial License Renewal Deadline

Nepal’s prominent telecommunications provider, Ncell, finds itself at a critical juncture as it rushes to renew its license before May 18. The renewal, mandated by the Telecommunications Act, requires a hefty payment of 20 billion rupees.

With Ncell’s 20-year license set to expire on August 31, 2024, the renewal process has been initiated three months prior, in accordance with legal provisions.

Under Section 25 of the Nepal Telecommunications Act 2053, telecom companies operating in the country must renew their licenses periodically. For Ncell, this marks the third renewal, following milestones at the 10 and 15-year marks.

The negotiation for Ncell’s previous license renewal in 2061 BS saw a payment of 20 billion 13 million 27 thousand 50 rupees. Consequently, the current renewal requires a similar sum, with additional fees possible.

In contrast, Nepal Telecom recently renewed its license, adhering to legal requirements by paying 20 billion rupees and 21 million for the license fee.

Santosh Poudel, spokesperson for the Authority, stressed the significance of completing Ncell’s renewal process by May 18. Failure to do so could incur a 15 percent fine if renewed by August 31 or automatic cancellation if the deadline is missed entirely.

A decision by the government, made during a cabinet meeting on February 18, 2024, has linked Ncell’s license renewal to eventual ownership transfer to the Government of Nepal, without altering the company’s share structure.

Additionally, ongoing legal disputes between Ncell and the Nepal Telecommunication Authority regarding frequencies and taxes may influence the terms of the license renewal, potentially imposing additional conditions on the company.