Thursday, February 21, 2013

Ncell pays govt Rs 1.2b, clears 3G spectrum fee

KATHMANDU, FEB 20 - 2013

Ncell has paid the government Rs 1.20 billion and cleared the third generation (3G) spectrum fee as fixed by the new spectrum policy. Moreover, the company paid Rs 240 million on Tuesday as 3G fee in advance for the current fiscal year.

As per the Telecommunications Radio Frequency Distribution and Pricing Policy 2012, the company was required to pay a total of Rs 1.20 billion for using 2X10 MHz 3G frequency for the last five fiscal years starting from 2007-08. It had paid Rs 522.1 million during the first week of February, and it paid the remaining Rs 677.9 million on Tuesday.

“Even though we started providing 3G service commercially only in May 2010, we have paid the fees for the period prior to this too,” said Milan Mani Sharma, corporate communication expert of Ncell . He added that the government should make a consideration for the period when the service was not commercially provided, and that the amount that has been paid should be adjusted against future dues.

The Nepal Telecommunications Authority (NTA) assigned 3G spectrum to Ncell in July 2007, and it started commercial service in May 2010. Similarly, Nepal Telecom (NT) has been demanding that the government review its 3G fee under the same consideration.

The state-owned company said it would not pay for the period when the service had not been launched for the public.

Last month, NT paid Rs 488.7 million against the Rs 1.44 billion outstanding as calculated by the government for six fiscal years from 2006-07 to 2011-12.

Based on the new policy, NT and Ncell each have to pay Rs 240 million annually for their 3G spectrum. According to NTA records, it provided 2X10 MHz 3G spectrum to NT in May 2006.

According to the NTA, NT owes Rs 951.3 million until the Radio Frequency Policy Determination Committee under the Ministry of Information and Communications decides to review the 3G fee. NT, which is also the first telecom company in South Asia to start 3G service, paid the fee from March 4, 2010, when it started commercial service, to the last fiscal year-end.

NT maintains that, although it was allocated spectrum seven years ago, it could not start 3G service until 2010 due to the small market size and expensive service and handsets. It had also demanded that the government to review the policy.

An official at the Communications Ministry said that the issue of 3G fees has reached the frequency committee that deals with spectrum affairs. The committee was scheduled to discuss it last week, but it did not happen as some members of the committee were absent, added the official.

Source: The Kathmandu Post

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