Ncell submits detailed letter to PM, raises concerns over telecom policies

KATHMANDU | January 13, 2026

Ncell Axiata Limited has submitted a detailed letter to Nepal’s Prime Minister, highlighting policy inconsistencies and regulatory uncertainty in the country’s telecommunications sector.

In the letter, the company outlined its 21-year contribution to Nepal through taxes, employment, infrastructure development, and support for the government’s Digital Nepal campaign. It warned that recent government decisions and regulatory amendments are unjust, unequal, and contrary to the spirit of the law.

Ncell alleged unequal treatment compared to state-owned Nepal Telecom, stating that while Nepal Telecom was allowed to renew its licence without interest, Ncell was required to pay a 10 percent interest instalment. The company also raised concerns over restrictions on share ownership transfers, arguing that they undermine investor property rights and conflict with foreign legal obligations.

The letter presented 16 key points, detailing Ncell’s long-term role in national development through telecom services, job creation, corporate social responsibility, and support for health, education, disaster preparedness, and sports. It described itself as a successful model of foreign investment, contributing to technology transfer, skills development, and service quality improvements.

Ncell stressed that uninterrupted telecom services are essential to citizens’ constitutional right to information and communication. It noted that banking, digital payments, government services, and emergency systems depend on reliable networks. The company reaffirmed its commitment to investing in technology, expanding rural coverage, and supporting Digital Nepal.

The letter also highlighted structural challenges facing the sector, including declining GDP contribution, high taxation, rising competition from OTT platforms, expensive spectrum fees, and regulatory uncertainty that weakens long-term investment capacity.

Ncell urged the government to review cabinet decisions related to licence renewal and revise conditions it described as discriminatory. It called for policy consistency, equal treatment for foreign investors, and a regulatory environment that sustains confidence.

The company reiterated its commitment to uninterrupted service, new technology investment, expanding Nepali ownership through IPOs, and supporting national digital ambitions, warning that a stable and fair policy framework is critical for sustained investment, employment, and service continuity