Govt collects Rs 1.7bn as frequency fee

KATHMANDU:

Telecom companies have paid Rs 1.7 billion as frequency fee to the government. The revenue includes charges for minimum, maximum and additional spectrum used for mobile service, 3G and WiMax frequencies, among others.

Two telecom companies — Nepal Telecom (NT) and Ncell — that are providing 3G service paid Rs 480 million as 3G frequency fee for the current fiscal year. Likewise, NT paid Rs 120 million as fee for using WiMax spectrum, while United Telecom Ltd (UTL) paid Rs 30 million for spectrum it is using for limited mobility service.

STM Telecom Sanchar, the only Rural Telecommunication Service provider paid Rs 74,700 for VSAT frequency this year. The Telecommunications Radio Frequency Distribution and Pricing Policy 2012, mandates each telecom company to clear the fee for maximum, additional spectrum, WiMax, 3G and VSAT spectrum being used within the first three months of each fiscal year.

According to Nepal Telecommunications Authority (NTA), NT, Ncell, UTL, Nepal Satellite Telecom and STM Telecom Sanchar paid a combined Rs 1.39 billion as advance spectrum fee for the current fiscal year. This also includes charges for new VSAT frequencies assigned within first three months of current fiscal year, according to NTA officials.

In the last fiscal year, the government collected a total of Rs 1.34 billion as advance spectrum fee. NT has been using additional and maximum

frequency in the 800 MHz, 900 MHz and 1,800 MHz bands, and Ncell has been using additional spectrum in the 900 MHz and 1800 MHz bands for its GSM mobile service, according to the NTA.

The charges for additional and maximum spectrum had been fixed at a higher rate and the fee is being collected in advance each year to discourage hoarding of spectrum. If a company uses additional 1 MHz in the 800/900 MHz band, it is required to pay Rs six million; and in the case of maximum spectrum, the fee is doubled (Rs 12 million) per MHz.

The government had collected Rs 267.5 million as minimum frequency fee from telecom companies and Rs 228.4 million as charges for microwave frequency from income of telecom companies last fiscal. The spectrum policy requires NTA licensees to pay fee of minimum spectrum and microwave frequency within first six months of each fiscal year based on previous year’s income.

The policy has fixed the charge for minimum frequency at 0.4 per cent of the annual income. The government has fixed the minimum spectrum 2x6 MHz (in the 900 MHz band) and 2x9 MHz (in the 1,800 MHz band) for mobile services

Source: THT