KATHMANDU, DEC 26 -
Nepal Telecommunications Authority (NTA) has eased the license conditions for Otel Pvt Ltd, a pre-paid calling card service provider, although the company failed to start the service as per the previous licence condition.
According to the new license conditions, Otel can sign contracts with multiple telecom companies to offer its calling card service. Earlier, it was allowed to sign contract with only one operator, according to NTA sources.
Normally, pre-paid calling card service providers buy talk time in bulk from telecom companies and sell them to customers through the cards at comparatively cheaper rates.
The NTA decision has raised eyebrows as the company got the
licence condition amended despite its failure to meet the old conditions.
Otel, backed by a Japan-based non-resident Nepali, had received the licence eight months ago to start pre-paid calling card, also known as pre-paid phone card service. As per the law, an NTA licencee has to start service within 90 days after receiving the permission. Although the company had approached the Nepal Telecom with a business proposal, the state-run provider had rejected the plan, saying the proposal contradicted the license condition.
The company, which had earlier received the licence by paying fee of Rs 3 million, approached the telecom regulator claiming the business was not viable as per the old license condition. Then, an NTA board meeting on Tuesday decided to amend Otel’s licence condition giving it additional facilities. “We have amended Otels’ licence and allowed it to use gateways of multiple telecom companies to provide pre-paid calling card service,” said Girindra Raj Adhikari, an NTA board member, adding the company will now be able to sell the service at comparatively cheaper rates.
However, some NTA officials expressed suspicion over the decision, claiming it would be difficult for anyone to bring down call rates, already as low as Rs 1per minute.
Source: The Kathmandu Post
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