Smart Telecom to be asked to clarify

KATHMANDU:

Nepal Telecommunications Authority (NTA) has decided to seek clarification from Smart Telecom on what is causing the delay in latter’s plan to expand its services nationwide. As per the decision of the regulator, the company will also be required to submit its service roll-out plan within 15 days.

A board meeting of NTA today took the decision to question Smart Telecom, after the company failed to expand its service nationwide, even as it had acquired the unified licence two years ago. Obtaining the licence in April 2013 permitted the company to take multiple of its telecom services, including GSM mobile service, nationwide.

“The NTA board has decided to ask Smart Telecom about the progress over the last two years,” said Achyuta Nanda Mishra, assistant spokesperson for NTA.

As per him, today’s meeting also decided to provide 60 days of additional time to United Telecom Ltd (UTL), as requested by it, to collect the unified licence. Citing internal management problems, the company last week had asked NTA that it be given additional 60 days to collect the licence.

As per the previous directive of NTA, UTL was supposed to take the licence within March 22. Two years ago, NTA had decided to grant unified licences to both Smart Telecom and UTL with a target to create competition in the market.

Even as Smart Telecom had taken the permit immediately after the decision, NTA said both the companies have failed to create competition in market by offering choices to customers.

Smart Telecom officials have been saying that the company could not move effectively as there was share ownership dispute within the company for a long time. Of late, the loss-making UTL is also embroiled in dispute between the management and trade union.

An official at NTA said that as unified licence and service operation under it requires commitment of huge investment, companies might also be exploring the potential of bringing foreign investment.

For the unified licence, the government has fixed licence fee of Rs 357 million and licence renewal fee of Rs 20.13 billion over 10-year period. The renewal fee has to be cleared in 10 instalments within 10 years after getting the licence.

Source:THT