Ncell Seeks License Renewal with Installment Plan Proposal

Nepal’s leading private telecom operator, Ncell, has embarked on a pivotal journey for the renewal of its operating license, setting the stage for a strategic financial negotiation with the Nepal Telecommunication Authority (NTA).

Established in 2004, Ncell faces the impending expiration of its current license this August, prompting the company to proactively pursue a renewal strategy. In a bid to manage its financial obligations effectively, Ncell has submitted a comprehensive proposal to the NTA, outlining a staggered payment plan for the upcoming 5-year license period.

The renewal fee, pegged at a substantial Rs 20 billion, underscores the gravity of the financial commitment Ncell faces. To alleviate immediate financial strain, the telecom giant aims to initiate the renewal process with an initial payment of Rs 4 billion for the first year. This calculated approach aligns with the company’s vision to navigate the evolving telecommunications landscape while ensuring sustainable growth.

Ncell’s proposal follows in the footsteps of its competitor, Nepal Telecommunications Company (Telecom), which opted for a lump-sum payment during the previous renewal cycle. However, recognizing the prevailing economic challenges within the telecommunications sector, Ncell underscores the necessity for flexibility in payment terms to safeguard its operational continuity.

Santosh Paudel, spokesperson for the Nepal Telecommunication Authority, confirmed the reception of Ncell’s installment plan proposal, including the outlined initial payment. Deliberations are underway within the Authority, with the ultimate decision resting in the hands of the Ministry of Communication, Information, and Technology.

The Ministry holds the authority to escalate the matter to the Council of Ministers for a final decision, a process that has been employed in prior renewal cycles. As Nepal’s telecommunications landscape continues to evolve, Ncell remains committed to fostering innovation, connectivity, and economic growth while navigating the intricacies of regulatory compliance and financial sustainability.