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

Ncell pays first installment of renewal fee

KATHMANDU, Dec 27. 2012

Ncell, the private telecom operator that committed to clear its renewal fee on installment basis, has paid the first installment of renewal fee worth Rs 2.5 billion to the Nepal Telecom Authority (NTA).

“We received the first installment from Ncell on Friday,” said NTA Chairman Digambhar Jha. He told Republica that the largest GSM operator of the country has committed to clear renewal fee in 8 installments.

Ncell had formally informed the Ministry of Information and Communication (MoIC) and NTA in November that it would clear the renewal fee on installment basis mainly after the cabinet decision allowed operators to do so on eight-year installment.

In its letter to the MoIC and NTA, the largest GSM operator in the country then had also committed to pay first installment of renewal fee by January, 2013. It has also expressed commitment to clear remaining installments as per the conditions set by the government.

This means Ncell will now pay the remaining Rs 17.5 billion on annual installment basis within 2020.

MoIC and NTA had pressed the Ncell and Nepal Telecom, the state-owned operator, to pay the renewal fee mainly as their licensing conditions require them to renew their operating licenses after 10 years. After completing 10 years of operation, they have to renew license every five years.

According to NTA officials, the operating license of Ncell has to be renewed by August, 2013. NT should have renewed its license two years ago. However, the two players have been citing that they will clear the due only after the other do so.

“We are happy that Ncell has started clearing its due fee. We hope the state-owned operator will follow suit soon,” said Jha.

Although NT has been saying that it would clear the dues after private operators clear their fees, officials said the state-controlled operator is yet to respond to the instructions of the authority in this regard.

Another private operator United Telecom Limited (UTL) renewed its operating license about three months ago, paying Rs 204.18 million -- first installment of its renewal fee.

Source: Republica

NTA bid to regulate cross-holding

KATHMANDU, DEC 14 - 2012

The Nepal Tele-communications Authority (NTA) has been working on a new rule to manage and regulate cross-holding by telecom companies. Cross-holding is a situation where a public company owns shares in another public company.

A committee under the coordination of former law secretary Madhav Paudel is putting the final touches to the regulation. It has been charged to recommend whether the government should allow cross-holding or not and why. The panel, which includes Nepal Rastra Bank executive director Bhaskar Mani Gyawali and Kailash Prasad Neupane of the NTA, has also been asked to advise the telecom authority how it should regulate cross-holding among its licensees, if it were to be allowed. The committee has been consulting economic experts like former finance secretary Rameshwor Khanal regarding the cross-holding provision.

“Our report is almost ready, and we will submit it to the NTA board soon,” said Neupane, member secretary of the committee and spokesperson of the NTA. He added that, based on a study of the existing provisions and laws, a few amendments needed to be made to the rules and regulation related to telecommunications to oversee cross-holding.

The issue of cross-holding in the telecom sector arose after Swedish-based TeliaSonera, the parent company of Ncell, acquired shares of Nepal Satellite Telecom (NST) about eight months ago. TeliaSonera had indirectly acquired NST shares through its subsidiary TeliaSonera Asia Holding BV. Reports said that TeliaSonera Asia had bought a 49 percent stake in Cypriot holding company Airbell Services which owns 75 percent of NST.

Meanwhile, TeliaSonera has been saying that it was very typical for it to have more than one brand in the market. During a visit to Nepal in August, Lars Nyburg, president and CEO of TeliaSonera, stated that they had invested in NST to expand services with a focus on rural areas. In July, NST signed a contract with Chinese telecom equipment vendor ZTE Corporation to extend its telecom service to the Western and Far Western regions.

After TeliaSonera invested in Ncell and NST, the NTA board had formed the committee in April to prepare a report on cross-holding and its regulation within a month. However, the committee fell behind schedule due to the demise of Paudel’s father, resignation of the NTA chairman and festival holidays, according to NTA.

Source: The Kathmandu Post

Nepal Satellite Telecom will focus on rural areas: TeliaSonera

KATHMANDU, AUG 28, 2012

TeliaSonera, the parent company of Ncell, has said its investment in Nepal Satellite Telecom (NST) is aimed at delivering better telecom services at lower costs.

Addressing a press conference here on Monday, TeliaSonera President and CEO Lars Nyberg said NST would focus on rural areas. Nyberg, along with other top TeliaSonera officials, were in Nepal to give a boost to its telecom business, including the new NST venture. TeliaSo-nera recently indirectly acquired NST through its subsidiary TeliaSonera Asia Holding BV. TeliaSonera Asia bought 49 percent stake in Airbell Services which owned 75 percent stake in NST.

During their one-day stay in Nepal, Nyberg and his team met top political leaders. According to Nyberg, TeliaSonera will explore legal and technical possibilities on sharing infrastructure of both the operators—Ncell and NST—for service expansion.

With NST’s acquisition, TeliaSonera now has two brands in Nepal. According to Nyberg, it is very typical for TeliaSonera to have more than one brand in a market. “I think this is a sign of market maturing,” said Nyberg. Norway, Sweden and Estonia are the other countries where the company has more than one brand.

On concerns that TeliaSonera’s investment NST may create monopoly, TeliaSonera Eurasia President Tero Kivisaari, said: “We are not creating a monopoly.”

“We understand and have full respect we will have competition in the telecom market. We believe competition is the best way to ensure good quality and have affordable prices for the population,” Kivisaari added. “Our ambition is not to have 100 percent market share in Nepal.”

According to TeliaSonera, NST will be a complementary asset for Ncell. Kivisaari added it is a must for NST to offer good quality at competitive price and maintain a good image among customers.

TeliaSonera, however, did not unveil any big plan for NST’s expansion. It said it will first concentrate on reaching areas outlined by the government in the operating licence of NST.

NST last month signed a contract with China’s ZTE Corporation for network expansion and is also planning to relaunch its Hello Nepal brand.

Source: The Kathmandu Post