NTA starts monitoring UTL service for unified licence

KATHMANDU, MAR 19 -

The Nepal Telecommunications Authority (NTA) has started monitoring network capacity and coverage areas of United Telecom Limited (UTL) to issue the unified telecom licence to the operator.

UTL was the first telecom company to apply for the unified licence that permits operation of mobile services, including local, domestic trunk, international long distance calls. UTL plans to roll out the GSM mobile service after getting the licence. So far, it has been offering CDMA mobile service.

“Our officials are monitoring UTL’s network coverage through the company’s main system,” said NTA Director Purushottam Khanal. “Monitoring is the last part of the preparation before issuing the licence.”

Three telecom companies — UTL, Smart Telecom and STM Telecom Sanchar — have applied for the unified licence.

As per the new licensing provision, telecom companies have to complete the job of taking telecom services to rural areas as mentioned by the government in their existing licence; clear all revenue dues, if any; and pay a licence fee of Rs 357.50 million while agreeing to pay a licence renewal fee of Rs 20.13 billion (within 10 years) to get the unified licence. According to NTA, it will issue the unified licence based on the monitoring report and decision of the NTA board.

Smart Telecom and STM Telecom had received the existing licence of rural telecom service on condition that they would take their services to the designated villages. However, there is no such condition in UTL’s existing licence as it had received the licence of nationwide basic telecom service.

NTA officials said although it is not mandatory to check the UTL’s network coverage, it is important to know the carrier’s current network status. As of December last year, UTL has around 700,000 subscribers and it offers its services in four dozen districts.

According to Khanal, monitoring of Smart Telecom is also in the final stage. The authority is checking service coverage areas and base transceiver stations by assigning it officials to Smart Telecom’s service areas in different parts of the country.

However, the NTA is yet to decide whether to monitor STM Telecom before issuance of the licence. NTA officials said as per a study, STM Telecom has already fulfilled the conditions set by the government.

In the initial phase, the government plans to issue the unified licence to UTL and Smart Telecom.

Source: The Kathmandu Post