Ncell Writes To Government Seeking License Continuity, More Investment, And IPO To Become Nepali Company
पुस २४, २०८२ १२:५०
Kathmandu: Private telecom service provider Ncell has submitted a detailed letter to the government proposing a plan to make the company fully Nepali-owned. The letter urges the government to ensure continuity of services even after the completion of the 25-year license period.
The letter was submitted on Wednesday by Ncell Chief Executive Officer Michael Foley to Prime Minister Sushila Karki and relevant ministries. It outlines proposals related to license renewal, ownership restructuring, foreign investment security, and long-term operations.
Ncell has committed to issuing shares to the general public through an IPO and increasing Nepali ownership to more than 50 percent. The company said this would establish Ncell as a Nepali company in the true sense. It also expressed readiness to distribute ownership to the public in line with the Securities Act.
According to the company, this step would help resolve ongoing disputes with the government and ensure stable long-term operations. Ncell has proposed multiple options to address current legal hurdles and renewal conditions.
Ncell has claimed that the conditions imposed during license renewal are illegal and discriminatory. It said the government-owned Nepal Telecom was allowed to renew its license without interest, while Ncell was charged 10 percent interest. This, the company said, imposed an additional financial burden of Rs 2.55 billion.
The company has also objected to a condition that restricts changes in share structure for the purpose of transferring ownership to the government after 25 years. Ncell said this directly interferes with the constitutional fundamental right to property.
Commitment To 5G Investment
Ncell has pledged to invest in advanced technology, including 5G expansion, if license continuity beyond 2029 is assured. CEO Foley said telecom investments take six to eight years to recover, making long-term planning difficult without clarity on the license.
The company said it is ready to support the Digital Nepal goal by expanding high-speed fiber networks and strengthening the digital ecosystem.
Share Purchase And Sale Dispute
The letter also addresses the government’s decision not to recognize the share purchase and sale agreement between Axiata and Satish Lal Acharya’s company Spectralite UK in December 2023.
Foley called the situation absurd, arguing that the government itself is creating barriers while a Nepali-origin investor is attempting to Nepali-fy the company. He said Ncell disclosed the agreement as required under Malaysian law and submitted details within 30 days for approval under Nepali law.
Citing the Bilateral Investment Promotion and Protection Agreement between Nepal and the UK, Foley said foreign investments are legally protected from nationalization. Ncell warned that it may be forced to approach international courts if decisions are not reviewed, though it said this would not benefit either the country or the company.
Ncell has sought a “win-win” solution, noting that it has paid Rs 360 billion in revenue and connected 14 million customers over the past 21 years. “Let us be relieved of this burden and let us do our job,” the company stated.
The company also clarified that it paid more than Rs 1.69 billion in taxes during the ownership change process and is ready to pay any additional taxes as required by law.
On management capacity, Ncell said it has international-level leadership experience. It urged the public not to doubt its operational capability, noting that its CEO has previously led major telecom companies such as Airtel Africa, Telenor Pakistan, and Grameenphone.
Ncell argued that the recent five-year license renewal itself confirms that regulators have accepted the company’s technical and financial capacity.
पछिल्लो अध्यावधिक: पुस २४, २०८२ १२:५२
