NTA shuts down two illegally operating ISPs

Kathmandu, August 8

In a glaring example of some of the challenges arising along with the proliferation of technology, the government has shut down two internet service providers (ISPs) that were operating their services illegally in Chitwan.

A team of officials from Nepal Telecommunications Authority (NTA), on Friday, raided Welink Pvt Ltd and SSD Pvt Ltd after receiving complaints about the firms providing internet service without obtaining the required permit.

A preliminary investigation by NTA shows that Welink, based in Chanauli of Chitraban Municipality, had been providing internet service for the last one year and it had around 100 customers. Similarly, SSD, based in Bijaya Nagar of Bharatpur Municipality, was providing service since the past two months and had 60-plus customers.

While NTA refused to disclose the identity of the source who had tipped them off about the wrongdoings, after receiving the complaint, NTA had formed a committee under the coordination of its Deputy Director Arjun Ghimire to investigate the issue.

The Telecommunication Act 1997 restricts operation of ISP without a permit and has a provision of a penalty of up to Rs 500,000 and imprisonment for up to six months.

“Action will be taken against both the companies as per the law and NTA will also further investigate the two ISPs that had provided the bandwidth to Welink and SSD,” said Achyuta Nanda Mishra, assistant spokesperson for NTA and member of the committee.

Owners of the two illegal ISPs have been asked to report to the NTA for further investigation regarding on how they brought in the necessary equipment to provide the service and loss in revenue to the government, among others.

Welink was being operated under joint investment of Manjil Parajuli and Sudeep Khanal. It had received bandwidth from Classic Tech Pvt Ltd, a licensed ISP which is also a Network Service Provider (NSP).

SSD is owned by four individuals, including Shiva Adhikari. It had bought bandwidth from Gandaki Communication Pvt Ltd, a licensee of ISP.

NTA officials have revealed that the individuals involved in illegal operation of Welink and SSD had earlier worked for other ISPs and later started their own business by flouting the law.

It costs Rs 300,000 to get a licence of ISP and the company has to pay four per cent royalty and two per cent of annual income as fee to Rural Telecommunication Development Fund, besides other taxes to the government.

Classic Tech and Gandaki have also been found to be violating their licence conditions. As per NTA provisions, such ISPs can resell their services to a third party by maintaining billing account of their own company and signing agreements with customers on their behalf.

Furthermore, Gandaki is not even a licensed NSP to be eligible to sell its bandwidth to other service providers.

Based on the actions of Classic Tech and Gandaki Communication, NTA can slap a penalty of up to Rs 500,000 on each of them.

Last year, too, NTA had shut down an illegally operating ISP — Baglung Net of Baglung — and imposed a fine of Rs 300,000.

Source: THT