The Government of Nepal has granted Nepal Telecom a new 5-year license to continue providing GSM cellular mobile services. This decision was made during a Cabinet meeting held on Thursday, where the Council of Ministers directed the Nepal Telecommunication Authority (NTA) to re-issue the license to Nepal Telecom.
Cabinet’s Decision
The Cabinet’s decision stated, “For the purpose of regularizing telecommunication services, the Nepal Telecommunication Authority is instructed to re-issue the license to Nepal Telecommunication Company Limited in accordance with Sub-section 4 of Section 33 of the Telecommunications Act, 2053, using the authority granted by Section 20 of the same Act.”
Sub-section 4 of Section 33 allows the previous license holder to operate telecommunication services with up to 50 percent foreign investment after the expiration of the operating license.
New License and Fees
According to Santosh Paudel, the spokesperson for the NTA, Nepal Telecom was granted the new license on Friday. The company’s previous 25-year license had expired on Thursday.
For the new license, Nepal Telecom paid a fee of NPR 21 million (approximately USD 170,000) to the NTA. The company had initially obtained the license for GSM services in 2056 BS (1999 AD).
This new license will enable Nepal Telecom to continue providing its cellular mobile services to customers across the country for the next five years.
