Ncell has acquired additional spectrum in the 1,800 megahertz bandwidth through the first-ever frequency auction held by the Nepal Telecommunications Authority (NTA) today for residual spectrum in the given bandwidth.
Currently, Ncell utilises 11 megahertz under 1800 band to relay cellular and data 4G Long Term Evolution (LTE) services, and 8 megahertz under the 900 band to provide 3G services in remote and rural areas, But Ncell will be allowed to use the frequency – it won today – only after it clears outstanding capital gains tax (CGT).
Though, it is the highest bidder, Ncell will not be able to purchase all the available remaining 16 MHz in the 1,800 MHz bandwidth as telecom companies are limited to use maximum of 20 MHz in any bandwidth. As Ncell is already using 11 MHz in the 1,800 MHz bandwidth, it can now purchase maximum of 9 MHz in the bandwidth.
With a bid amount of Rs 58 million per MHz, Ncell became the highest bidder surpassing the state-owned Nepal Telecom, which made a bid of Rs 50 million per MHz.
Earlier, the telecom sector regulator had called for spectrum auction for available 16 MHz in the 1,800 MHz bandwidth. Out of the available 75 megahertz bandwidth under the 1800 spectrum, 59 megahertz is currently assigned to five telecommunications companies, and the NTA has now auctioned the residual frequency of 16 megahertz.
Frequency spectrum is one of the important resources in the telecommunication sector without which operators cannot start wireless mobile service. The company with higher frequency spectrum can provide efficient services to its customers. The spectrum is expected to enable the concerned telecommunication operator to enhance the speed of 4G service at low cost while helping to expand its coverage. The telecom companies prefer 1,800 MHz bandwidth for GSM and 4G technology.
Initially, NTA had called for spectrum auction for available frequencies across all 900 MHz, 1,800 MHz and 2,100 MHz bandwidths. But auction across two other bandwidths could not take place as Ncell was the only company to express interest in the frequency auction of 900 MHz and 2,100 MHz bandwidths.
The Ncell will not be allowed to immediately use the additional spectrum in the 1,800 MHz that the company won today as it is facing tax issues, though NTA had allowed Ncell’s participation in the spectrum auction only on the condition that it will use additional spectrum in the given bandwidth – if it becomes the highest bidder – only after it clears all its tax liabilities, including CGT.
“Though Ncell was the highest bidder in the spectrum auction held today, NTA will allow the company to use additional frequency in the 1,800 MHz band only after Ncell clears its tax liabilities to the government,” the authority informed.
The Supreme Court in November said Ncell could pay Rs 21.10 billion in CGT against the Rs 39.06 billion determined by the tax authorities. Last April, the Large Taxpayers' Office had asked Ncell to pay Rs 39.06 billion in CGT, following which Ncell had moved the apex court seeking annulment of the decision taken by taxmen. Ncell, however, is yet to clear the amount.
Due to specifications for participating in the spectrum auction, no other telecom company except NT and Ncell could participate in the frequency auction. The spectrum auction notice had mentioned that telecom companies had to either have a basic telephony service licence or unified licence, clear all dues including royalty, RTDF and spectrum fees to be eligible to participate. Smart Cell and UTL are yet to clear the dues of frequency that they are using, while CG Telecom has not been granted unified license yet.
CG Telecom – citing that NTA was biased – had, however, filed a case in the Supreme Court a week ago seeking stay on the NTA’s frequency auction process. But the apex court did not issue a stay order.
The Chaudhary Group subsidiary filed the writ on Sunday stating that the regulator had not provided it with a GSM licence despite its eligibility to obtain one, and set the terms of the auction preventing it from participating in the bidding.
A court decision on the writ by the single bench of Justice Prakash Kumar Dhungana today has asked the government to clarify why CG has not been given a permit to operate GSM services, and why it was not allowed to take part in the bidding. But the decision came after the bidding process concluded.
Currently, Ncell utilises 11 megahertz under 1800 band to relay cellular and data 4G Long Term Evolution (LTE) services, and 8 megahertz under the 900 band to provide 3G services in remote and rural areas, But Ncell will be allowed to use the frequency – it won today – only after it clears outstanding capital gains tax (CGT).
Though, it is the highest bidder, Ncell will not be able to purchase all the available remaining 16 MHz in the 1,800 MHz bandwidth as telecom companies are limited to use maximum of 20 MHz in any bandwidth. As Ncell is already using 11 MHz in the 1,800 MHz bandwidth, it can now purchase maximum of 9 MHz in the bandwidth.
With a bid amount of Rs 58 million per MHz, Ncell became the highest bidder surpassing the state-owned Nepal Telecom, which made a bid of Rs 50 million per MHz.
Earlier, the telecom sector regulator had called for spectrum auction for available 16 MHz in the 1,800 MHz bandwidth. Out of the available 75 megahertz bandwidth under the 1800 spectrum, 59 megahertz is currently assigned to five telecommunications companies, and the NTA has now auctioned the residual frequency of 16 megahertz.
Frequency spectrum is one of the important resources in the telecommunication sector without which operators cannot start wireless mobile service. The company with higher frequency spectrum can provide efficient services to its customers. The spectrum is expected to enable the concerned telecommunication operator to enhance the speed of 4G service at low cost while helping to expand its coverage. The telecom companies prefer 1,800 MHz bandwidth for GSM and 4G technology.
Initially, NTA had called for spectrum auction for available frequencies across all 900 MHz, 1,800 MHz and 2,100 MHz bandwidths. But auction across two other bandwidths could not take place as Ncell was the only company to express interest in the frequency auction of 900 MHz and 2,100 MHz bandwidths.
The Ncell will not be allowed to immediately use the additional spectrum in the 1,800 MHz that the company won today as it is facing tax issues, though NTA had allowed Ncell’s participation in the spectrum auction only on the condition that it will use additional spectrum in the given bandwidth – if it becomes the highest bidder – only after it clears all its tax liabilities, including CGT.
“Though Ncell was the highest bidder in the spectrum auction held today, NTA will allow the company to use additional frequency in the 1,800 MHz band only after Ncell clears its tax liabilities to the government,” the authority informed.
The Supreme Court in November said Ncell could pay Rs 21.10 billion in CGT against the Rs 39.06 billion determined by the tax authorities. Last April, the Large Taxpayers' Office had asked Ncell to pay Rs 39.06 billion in CGT, following which Ncell had moved the apex court seeking annulment of the decision taken by taxmen. Ncell, however, is yet to clear the amount.
Due to specifications for participating in the spectrum auction, no other telecom company except NT and Ncell could participate in the frequency auction. The spectrum auction notice had mentioned that telecom companies had to either have a basic telephony service licence or unified licence, clear all dues including royalty, RTDF and spectrum fees to be eligible to participate. Smart Cell and UTL are yet to clear the dues of frequency that they are using, while CG Telecom has not been granted unified license yet.
CG Telecom – citing that NTA was biased – had, however, filed a case in the Supreme Court a week ago seeking stay on the NTA’s frequency auction process. But the apex court did not issue a stay order.
The Chaudhary Group subsidiary filed the writ on Sunday stating that the regulator had not provided it with a GSM licence despite its eligibility to obtain one, and set the terms of the auction preventing it from participating in the bidding.
A court decision on the writ by the single bench of Justice Prakash Kumar Dhungana today has asked the government to clarify why CG has not been given a permit to operate GSM services, and why it was not allowed to take part in the bidding. But the decision came after the bidding process concluded.
