Government Begins Preparations to Take Over and Run Ncell Commercially

 

Kathmandu: The Nepal Telecommunications Authority (NTA) has started preparations to bring Ncell under government ownership and operate it commercially. The move is part of a pre-preparation plan included in the NTA’s approved annual budget for the current fiscal year 2082/83, as Ncell’s 25-year operating license nears expiration.

According to the approved budget, “The Government of Nepal will acquire ownership of Ncell Axiata Limited and formulate a commercial operation framework by studying the necessary technical, financial, and managerial arrangements for the operation of its telecommunications services.”

Under the Telecommunications Act, if more than 50 percent of a telecom company’s total capital is owned by foreign investors, the land, buildings, machinery, and equipment automatically transfer to the Government of Nepal after the 25-year license period expires. Currently, foreign investors hold 80 percent of Ncell’s shares.

Ncell received its GSM mobile service license on 16 Bhadra 2061, valid until 15 Bhadra 2086. This means Ncell will come under government ownership in about three years and 10 months.

As part of the early groundwork, the NTA will develop a framework for commercial operations through a detailed study. According to an NTA official, Rs 1 million has been allocated for the study in the current fiscal year.

“This issue has been included in the Authority’s budget this year,” the official told TechPana. “A committee will be formed for the study, and the terms of reference (TOR) are being prepared. The work will proceed as per the decisions made earlier by the Council of Ministers.”

Cabinet Decision on Ncell’s Future

The Council of Ministers, led by then Prime Minister Pushpa Kamal Dahal, made key decisions regarding the ownership and future operation of Ncell on 17 Falgun 2080, when Rekha Sharma was the Minister for Communications and Information Technology.

That cabinet meeting discussed the company’s situation after the expiry of its 25-year license. Based on that, the Authority has begun preparations to bring Ncell’s ownership under the government.

The cabinet decided that Ncell would be brought under government ownership after its 25-year term, once its technical, financial, and managerial capacity to operate telecom services was confirmed. The decision also specified that no changes should be made to the existing shareholding structure during license renewal.

Ncell’s license was renewed for a final five-year period under the same condition last year after completing its 20-year term.

The cabinet statement at the time said, “If the technical, financial, and managerial capacity of the licensee is confirmed to ensure the continuity of Ncell’s services, the license will be renewed with the condition that no changes are made to the company’s share ownership structure. This ensures that the ownership of the Government of Nepal in the land, buildings, machinery, equipment, and structures related to telecom services is maintained as per Section 33 of the Telecommunications Act, 2053.”

Axiata’s Exit and Ownership Dispute

On 13 Mangsir 2080, Malaysian company Axiata Group Berhad announced its decision to exit Nepal, citing growing commercial challenges. Axiata sold its 80 percent stake in Ncell to British company Spectralite UK, owned by Nepali businessman Satish Lal Acharya.

However, the Government of Nepal has not yet recognized this transaction, and in official records, the company continues to be listed as Ncell Axiata Limited.

What Happens Next

Once the study identifies the commercial operation model, the government will move ahead with a Due Diligence Audit (DDA) of Ncell.

Under the Telecommunications Act, the government can form a committee of up to five members, in consultation with the NTA, to determine the company’s valuation.

The law also allows the previous license holder to reapply for a new license and operate the service by paying the amount set by the committee to the government.

 

पछिल्लो अध्यावधिक: कात्तिक २०, २०८२ १४:२७

टिप्पणीहरू