NT refuses to pay licence fee citing lack of legal clarity
KATHMANDU, FEB 12 -
Nepal Telecom ( NT ) has refused to pay a Rs 20 billion GSM licence renewal fee as demanded on Tuesday by the Nepal Telecommunications Authority ( NT A), the telecom regulator.
With the deadline for paying the renewal fee ending Tuesday, the authority on Monday had instructed the company to clear the fee or face a 15 percent penalty. NT said that since there was no “clear provision” regarding the payment for a second time mobile permit fee they did not find it necessary to pay the charge, further seeking government intervention over the matter.
The second permit renewal allows NT to operate its mobile service until May 2019.
“After discussion with our legal and management teams, we informed NT A on Tuesday that we had paid a Rs 189 million renewal fee as per a rule in the old licence,” said Guna Keshari Pradhan, spokesperson of the NT . She added that despite a decision from the Cabinet and now-defunct Public Accounts Committee (PAC) to study the fee revision, the government failed to do so, further claiming that the government is requesting NT pay a Rs 20 billion fee “unreasonably”.
The authority officials admitted of not being able to undertake a study due to the lack of cooperation from the Communications Ministry and the absence of the NT A chairman.
Sources at NT A said that NT on Tuesday wrote to the Communications Ministry seeking intervention on the fee issue. As per Clause 20 of the Telecommunication Act, the government can issue direction to the NT A regarding the diversification, extension and regularisation of telecommunications services. However, NT A officials claimed that the government cannot intervene on fee issues though can provide direction on service related issues.
Even as NT paid Rs 189 million as a renewal fee as per its legal interpretation, the authority has said that since there are not any changes in the law regarding the mobile licence renewal fee till date, NT was accountable for the full fee.
“Since NT failed to pay all Rs 20 billion, it will now have to pay a 15 percent delay charge,” said Kailash Prasad Neupane, spokesperson for the NT A.
With NT paying Rs 189 million last Friday, if the NT A’s position is adhered to, NT now owes Rs 19.81 billion. The NT A also said that the company was legally responsible to pay a 15 percent fine equating to Rs 2.97 billion.
NT on Friday paid Rs 189 million as a renewal fee and applied for the renewal of its permit which will allow it to operate services till May 2019. The amount paid by the NT is 90 percent of the licence issuance fee of Rs 210 million.
NT ’s existing licence expires on May 11, and it is mandatory to apply for NT A licences three months before the licence permit expires.
Source: The Kathmandu Post
