Telecom regulator to collect fees for frequencies in advance

KATHMANDU, AUG 17 -

The Nepal Telecommunica-tions Authority (NTA) has planned to require telecom companies to pay the charges for frequencies being used for 3G, WiMax and satellite mobile services in advance from the current fiscal year. It has asked the Ministry of Information and Communications for its go-ahead to implement the rule.

The NTA will collect the frequency fees that are fixed by the spectrum policy within the first three months of each fiscal year (mid-July to mid-October). The ministry unveiled the Telecommunications Radio Frequency Distribution and Pricing Policy 2012 last year, but it failed to incorporate a fee collection schedule for 3G, WiMax and satellite phone services. This prompted the NTA to come up with a separate rule.

NTA Director Ananda Raj Khanal said that after the plan is okayed by the ministry, telecom companies would have to clear the 3G, WiMax and GMPCS spectrum fees by mid-October each year. “The existing policy holds the companies responsible for paying the determined fee only for additional, maximum frequency and VSAT by the first three months of each year,” he added.

Currently, Ncell and Nepal Telecom (NT) each have been using 2x10 MHz frequency each for their 3G services. NT has also using 30 MHz frequency for its WiMax service launched last year. Similarly, two companies, i4 Technologies and Constellation that provides satellite phone service known as Global Mobile Personal Communication Service (GMPCS), will have to pay Rs 15,000 per MHz for spectrum use, according to the NTA.

NT and Ncell each have to pay Rs 240 million annually for their 3G spectrum as per the spectrum policy. The NTA started collecting the 3G spectrum fee only from the last fiscal year after fixing the fee through the policy, many years after the two companies started their service. The regulator assigned spectrum to NT in 2006 and to Ncell in 2007.

Even though Ncell cleared its 3G dues to the government in the last fiscal year, NT only made partial payment citing losses. According to Khanal, the NTA will direct NT to clear its outstanding 3G fees and also pay the charge for the current fiscal year.

NT has paid Rs 488.7 million out of the outstanding Rs 1.68 billion for spectrum use for seven fiscal years (2006-07 to 2012-13). Meanwhile, Ncell has paid Rs 1.44 billion for six years (2007-08 to 2012-13). Sanju Koirala, corporate communication director of Ncell, said that the company would pay the 3G spectrum fee as per the government’s direction.

“We still have differences regarding payment of old 3G fees,” said NT spokesperson Guna Keshari Pradhan.

Regarding the advance payment from the current fiscal year, she said the NT board and management would decide the next move after the government implements the rule.

As for WiMax, NT will have to pay Rs 12 million as spectrum fee to the government for 30 MHz. Fees for other frequencies—minimum spectrum and spot airwaves—will be collected within the first six months of each fiscal year based on the annual income of the precious fiscal year, according to the NTA.

The policy has fixed the charge for minimum frequency at 0.4 percent of the annual income. As per the policy, the government has fixed the minimum spectrum 2x6 MHz (in 900 MHz band) and 2x9 MHz (in 1800 MHz band) for mobile services.

Source: The Kathmandu Post