The government has decided to allow Ncell, a major private telecom company, to pay its license renewal fee in installments. In a Cabinet meeting on Thursday, it was decided that Ncell can pay the fee in four yearly installments of Rs5 billion each. The company’s license is set to expire on Sunday, according to Prithvi Subba Gurung, Minister for Information and Communication Technology and government spokesperson.
Under the new arrangement, Ncell will pay a 10 percent interest rate on the second, third, and fourth installments, while the first installment will be interest-free. The Nepal Telecommunication Authority (NTA) will receive instructions to implement this decision.
This installment facility for license renewal has been offered before, but previously, the government did not impose interest on the second and third installments. The Office of the Attorney General had advised against continuing this practice, citing it as illegal and detrimental to state finances.
Three months ago, Ncell had requested the NTA to allow installment payments for the renewal fee. However, the regulatory body informed the company that the current laws do not permit such an arrangement and reported the request to the ministry.
