TikTok users protest against government ban

TikTok users today protested against the government decision to ban the app.

Expressing their displeasure against the government’s decision of banning the popular social media application, the TikTok users gathered at Maitighar Mandala and protested against the government's decision.

They argued that the government has curtailed their right to freedom of expression by banning the video-sharing site TikTok. They also advised the government not to be afraid of TikTok users and demanded immediately lifting the ban.

Claiming that TikTok has had a negative impact on social harmony, the government -- on November 13 -- banned the TikTok, which is being used as a social networking site in Nepal. The government also accused TikTok of not cooperating with it to minimise such activities and take action against those involved.

After the government banned TikTok, the platform wrote a letter to the Nepal Telecommunication Authority (NTA), stating that it was surprised by the government ban. “We provided the Nepal government access to the ‘Trust and Safety Enforcement Tool,’ a portal for direct content removal requests as per Nepal’s laws. Furthermore, we registered as a digital service taxpayer,” TikTok said in its letter.

The Nepal Telecommunication Authority (NTA), coming into immediate action -- which is very unlikely in Nepal -- ordered all the Internet Service Providers (ISPs) to ban the application. The telecommunication sector regulator ahs also formed a technical committee led by director Bijay Kumar Rai for the effective implementation of the government's decision to ban TikTok in the country.

However, on Friday, as many as 10 writ petitions have been filed at the Supreme Court challenging the government’s decision to ban the TikTok.

According to the Supreme Court, the apex court will conduct an initial hearing on the petitions on Monday.

NoRemittance campaign forced government not to implement ban on bringing extra mobile sets from abroad

Nepal Telecommunications Authority (NTA) has temporarily backtracked from full implementation of Mobile Devices Management System (MDMS) on the request of Prime Minister.

Issuing a notice today, the telecom sector regulator confirmed that the implementation of MDMS has been stopped until further notice, per the direction of higher authorities. "We will make an appropriate decision after assessing the situation."

But a '#NoRemittance' movement of the Nepali migrants on social media has forced the government to backtrack from its decision as remittance is the key source of Nepal's foreign currency earnings. Even a slowdown in remittance inflow will create extra pressure on external sector as Nepal has witnessed in the last fiscal year.

Though remittance doesnot come under gross domestic product (GDP), it is the key gross national income (GNI), which equals to almost 29 per cent of GDP. According to the World Bank, Nepal has, since 2005, earned significantly more foreign exchange from international migration than from goods and services exports, including tourism, and foreign direct investment combined.

Nepal is currently ranked 11th among the top remittance recipient countries in proportion to its GDP, 'Migration and Brief-2022' of World Bank reads, projecting Nepal's remittance receipts to constitute 21.8 per cent equavalent to its GDP. "Nepal has a GDP of Rs Rs 4,851 billion, and the country ranked 10th last year."

Nepali diaspora has started a campaign 'No Mobile, No Remittance,' forcing the Prime Minister to interfere in the decision to implement MDMS from today by the NTA, knowledgable sources said.

The secretariate of Prime Minister Pushpa Kamal Dahal 'Prachanda', also confirmed that the premier directed finance minister Bishnu Poudel yesterday evening to postpone the implementation of the decision to impose customs duty on more than one mobile set imported from abroad at the individual level.

The Department of Customs (DoC) was scheduled to implement the provision from today. It was planning to levy an 18 per cent duty on second mobile phone brought into the country by individuals from foreign countries. Under the new provision, individuals will be allowed to bring one phone into the country without paying any customs duty but 18 per cent duty will have to be paid for the second phone, and third one will be confiscated by customs officials.

Currently, Nepalis returning from abroad are allowed to bring up to two mobile phones into the country without paying any duty.

The decision to bar a Nepali citizen from bringing more than one mobile set from abroad after the move drew flak on social media.

The NTA is planning to issuing another notice tomorrow requesting the mobile phone users, who brought their devices from abroad for personal use before mid-August this year should now update their operating system by taking an invoice from the customs office.

The NTA has planned to implement the MDMS, a security application that allows the regulator to set policies that safeguard, monitor, and govern end-user mobile devices, since long.

It has dome a soft launch of the MDMS on September 15. The system is expected to help reduce the gray market for smartphones, which not only bleed the government revenue but also hit authorised importers.

The new regulation would require each new phone brought into the country to be registered for availing of phone services provided by the Nepali telecom operators. 

MDMS also enables the regulatory body to disable the unregistered device, preventing it from connecting to the cell towers. Before adding the device to the MDMS database, one must pay the applicable customs duty and obtain a Customs Declaration Form from the customs office.

Using the NTA link to register the devices with MDMS is still recommended in the interim. Users can check whether a mobile phone is registered with the MDMS at the time of purchase within the country.

According to the NTA, around 1.5 million mobile phones were brought in by traders and registered with the authority in five months till November. "Around 11,000 personal cell phones have been signed up by the November," the NTA informed, adding that the International Mobile Equipment Identity (IMEI) records show that 3 million mobile phones have been registered over the period. "The IMEI is a unique 15-digit code, which tells exactly what kind of device you have when you put in the SIM card."

The NTA started developing the MDMS four years ago after the Mobile Device Management System Bylaws 2018 were issued.

Smartphones are mainly imported from China and India. The system was introduced to discourage illegal imports, sale and distribution of mobile sets and to track and block mobile phones in cases of theft and loss.

But both the telecom regulator and government could not convince the Nepali migrants, and take them into confidence before implementing the MDMS.

Issuing a press note Pravasi Nepali Manch, an organisation of migrant Nepali workers, said that the government is well aware that the country's economy is sustained by remittances sent home by millions of Nepali migrants. "The decision to levy customs duty on a mobile phone and a laptop brought in by returning Nepali migrant workers is an exploitation of those folks," it reads.

The NTA has issuing a notice on December 24, requested the mobile phone users, who brought their handheld devices from abroad for personal use before mid-August this year should update their operating system by taking an invoice from the customs office.

The notice read, “The sets not declared in customs, according to the rules, will not be registered from December 30. And this type of mobile set will stop operating."

Finally, Ncell to go public

Yet another multinational company – after Unilever Nepal – is going public soon.
A private telecom service provider, Ncell Pvt Ltd has converted itself into a public company, in line with the Nepal Telecommunication Authority (NTA) directives.
The company has also been renamed ‘Ncell Axiata Ltd’ from its earlier registered name Ncell Pvt Ltd, giving an indication to float share to the general public. Axiata is its parent company. Axiata is a multinational telecommunications conglomerate listed in Malaysian stock exchange.
Issuing a notice today, the first private mobile operator said that it has renamed ‘Ncell Axiata Ltd’ and got transformed into the public company following a decision of the Office of Company Registrar on Monday.
Earlier in 2016, a leading Asian telecommunication group headquartered in Malaysia Axiata Group acquired Ncell from TeliaSonera and Reynolds Holdings at $1.365 billion. The deal secured Axiata an 80 per cent equity interest and controlling stake in Ncell.
Nepal Telecommunication Authority (NTA) – the regulatory body of mobile service providers – had issued a circular to the licensed telecom service providers to offer their shares to the public. 
Another telecom service provider Nepal Telecom is already listed at Nepal Stock Exchange (Nepse). Ncell will be not only the second multinational company to be listed at the stock exchange but also second telecom service provider to be listed in the stock exchange.

Do not sell more than two sim card for each person: NTA

As multiutilisation of mobile number has been suspected of increasing criminal activities, the telecom regulator has made it stricter for the telecom service providers not to sell more than 2 sim cards in a bid to check the supposedly misuse.
Nepal Telecommunications Authority (NTA) has directed telecommunication service providers to stop selling more than two SIM/RIM cards to each person in a bid to stop the misuse especially in criminal cases. The NTA had directed cellular companies to enforce the new provision from July 8, according to the telecom regulator that also claimed that multiple uses of SIM/RIM cards pose a potential risk on digital payment and banking systems.
However, customers can take two sim cards from each service provider.
The increasing use of digital payment systems has made transactions more efficient in several ways but the untraceability of digital cash may encourage criminal activities such as money laundering, according to the regulator. “It could also pose a potential risk for criminal activities, with the utilisation of multiple cards on other digital services and social media which stores customer information in the phone,” it said, adding that the limited distribution of cards for each individual will, however, make it easier to trace the activities. “As the government is also planning to introduce a Citizens Apps, where mobile phones will be the primary way to access it, the limited distribution of SIM cards will minimise potential criminal activities.”
In line with the regulator’s directive, Nepal Telecom (NT) has also directed service providers to issue a limit of three SIM/RIM cards per person using CDMA service. “The parents should provide a proof of relationship document as well as other documents when getting a SIM card for minors,” the directives reads, adding that telecom service providers can only issue one SIM or RIM card per minor. “In case of customers, who already have registered more than one SIM card from telecommunication service providers, the cards need to be registered under the names of people who have been using it.”
The regulator has also warned the telecommunication service providers that they will face action as per the Telecommunication Act, 2053, if they do not follow the directives by the authority.
There are four licenced telecommunication service providers, but Nepal Telecom (NT), Ncell and Smart Cell have been providing the service.

Children are at risk of net addiction: Survey

Children and young people could be at a higher risk of internet addiction, gaming addiction and exposure to adult contents, according to a survey.
They could also be at a higher risk of online sexual abuse and exploitation, the ‘Survey on Changed Online Behaviour During Covid-19 Lock down in Nepal,’ conducted by ChildSafeNet reads.
Although the government banned pornographic sites in Nepal, more than 41 per cent respondents, including children and young people said they had visited such sites, the survey result reads, recommending addressing issues like this. “Detailed and thematic researches are required to develop in-depth knowledgebase to address the issue of online safety of children and young people during and after the lock down period.”
They surf youtube most of the time and facebook seconds the most searched sites, according to the survey that has also recommended conducting cyber safety awareness sessions for children, young people and parents through online and virtual awareness activities through social media and video conferencing sessions. “Video conferencing workshops on 'Parenting in the Digital Age' can help to equip parents with knowledge and skills to keep children and young people safe online,” it recommends, adding that the workshops will help to provide guidance to parents on reducing their own screen time, learn about cyber safety and lead by example to protect children and young people from online harms. “Educate children, young people and parents on the positive use of the internet and provide them information on sites and apps suitable for children.”
It also recommends to inform about useful and suitable sites according to their age and requirements. Asking to develop simple and easy cyber safety resources in Nepali and local languages for dissemination through online media, including, but not limited to social media, it has also suggested to operate a dedicated online helpline to provide tips, advice and support to people who experience online harms or at risk; refer to support services - police, psychologists, lawyers, social workers. “Strengthen law enforcement to report online abuses and make reporting accessible throughout the country.”
ChildSafeNet – a non-governmental organisation, established with a mission to make the digital technology safer for children and young people – also recommends advocating for more financial and technical resources from the government, ICT companies and other duty-bearers to make the internet safer for children, young people and everyone.
According to the president of ChildSafeNet Anil Raghuvanshi, the ‘Survey on Changed Online Behaviour During Covid-19 Lockdown in Nepal’, was conducted in all provinces of the country using online Google forms, distributed through social media platforms. The survey, self-administered by respondents started on April 17, 2020 till April 21, 2020. The survey was conducted with young children, young people and adults. Since the behaviour of adults may affect children in many ways, the survey also collected information on adults' online behaviour. “A total of 1,228 respondents – some 648 male, 576 and 4 other – had participated in the survey.
Due to the Covid-19 pandemic, the government imposed a country-wide lockdown in Nepal from March 24, 2020. As a result, schools, colleges and offices are closed, and people are staying at home spending a longer time using internet, which has increased the risk of online abuse and exploitation, particularly to children and young people as child online groomers and online sex predators may contact them for abuse and exploitation.
According to Nepal Telecommunications Authority (NTA), some 72.16 per cent people have access to broadband internet and 55.30 per cent use mobile broadband internet. Facebook is the most used social media platform in Nepal with 11 million active, it reads, adding that the number of Facebook users, particularly among young age groups declined globally and in Nepal. “However, the number of Facebook users increased by 600,000 from November 2019 to April 2020.”

Ncell wins additional spectrum in 1,800 megahertz bandwidth

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.

NTA, Nepal Telecom seal deal to lay optical fibre in Karnali, Sudurpaschim provinces

Nepal Telecommunications Authority (NTA) and Nepal Telecom (NT) today signed an agreement to lay 2,500-kilometre-long optical fibre in the Karnali Province and Sudurpaschim Province along the East-West Highway, Mid-Hill Highway and Postal Highway.
On the occasion, chairman of NTA Purushottam Khanal and managing director of NT Dilli Ram Adhikari signed a memorandum of understanding (MoU) – on behalf of their respective institutions – to lay the optical fibre cables within two years. They will sign construction agreement within a month, after detailed study of the project.
Following the construction agreement, Nepal Telecom will be responsible for laying optical fibre cables in both the provinces in areas stretching from Musikot of Rukum to Jhulaghat of Baitadi district. It will lay minimum 96 core optical fibre cables along the aforementioned three highways and 48 core optical fibre cables along routes connecting the highway with the headquarters of 20 districts, a press note issued by the Nepal Telecom reads. “Likewise, it will lay 24 core optical fibre cables in routes connecting the highway with different municipalities in these districts.”
According to the government’s plans to make a communication super highway, we have accelerated the fibre laying works,” Khanal said, expressing hope that the entire project will be completed within the set deadline. “Laying the optical fibre along various highways and connecting areas is part of the government’s long-term target to expand broadband network across all district headquarters, municipalities, schools and health centres.”
The agreement for laying optical fibre cables will play a crucial role in achieving the goals set through the Broadband Policy 2015 and the National Information and Communication Policy, the press note reads, adding that the NTA had – in June 2016 – signed another agreement with Nepal Telecom to lay optical fibre cables along the East-West Highway and the project is nearing completion. “The NTA had scrapped its earlier agreement with Smart Telecom – on October 28 – citing snail-paced work and lack of significant progress in laying fibre cables in Karnali and Sudurpaschim provinces.” Smart had been awarded the contract in September 2017, with the completion deadline of two years.
Nepal Telecom managing director Adhikari, on the occasion, expressed his commitment to complete the project on schedule. “Nepal Telecom will soon call a global tender and award the contract to lay the optical fibre in the two provinces.”

8.34 million Nepalis have access to mobile banking services

The number of mobile banking users has increased by over 4.5 times in the past four years. “Some 8.34 million Nepalis have access to mobile banking services – a fivefold jump compared to four years ago from 1.75 million to 8.34 million – as of mid-October,” according to a report of the central bank.
An expanding number of smartphone users and increased coverage of 3G and 4G services are attributed to the sharp rise in the number of mobile banking and internet banking users, read the report ‘Situation of Access to Finance in Nepal 2019,’ launched today.
Though, Nepal Telecommunications Authority (NTA) records, however, reveal that the number of mobile internet users has jumped to 14.65 million as of April 2019, the internet banking users stand at only 917,344. “Some 168,307 Nepalis use branchless banking. Likewise, there are some 1,530 branchless banking,” according to the report.
The rising popularity of mobile banking – a service provided by banks that allow clients to conduct financial transactions remotely using a smartphone – has also helped increase the number of mobile banking users.  Banks are competing by focusing on new technologies to provide different and easier services to their clients also due to easy access of smartphones and internet connectivity. But there is security concern about mobile banking as well as other banking services that use modern technology. In September, five Chinese nationals were arrested for stealing Rs 12.6 million from several ATMs of the Kathmandu Valley, causing people to be concerned about security features of modern banking services. Due to security concern, the central bank has fixed limit on transaction through mobile or internet. The central bank has set limits of transaction through mobile or Internet. “Only Rs 5,000 can be transacted through mobile banking at one time,” according to the new directives that dictates the weekly and monthly transactions of Rs 10,000 and Rs 50,000, respectively.
But mobile banking has become very convenient for people – especially for household purposes – and getting popular due to its convenient features. Though the expansion of branches – particularly in rural areas – and increasing use of technologies like mobile apps have helped increase the number of users of mobile and internet banking in recent days, the numbers of people using ATM, internet banking, credit card, and debit card have also significantly increased.
“There are 6.7 million people holding ATM cards, up from 4.13 million people six years ago,” the report reads, adding that some 123,146 people have credit cards, up from 57,898 card holders in 2014. “The number of ATM outlets across the country has doubled to 3,316 in the last six years.”
There are 27.8 million deposit accounts and 1.44 million credit accounts of individuals, according to the report. “As of mid-October, banks had enrolled 168,307 customers from their branchless banking outlets in 1,530 locations.”
Despite the rapid progress in the banking sector, some 14 – out of the total 753 – local units in the country still have no bank branches, though central bank has asked the commercial banks to open a branch in each of the 753 local units across the country.
“The bank branches are crowded in Kathmandu as in Province 3, one banking branch serves 2,770 people, whereas in Karnali Province, there is one banking branch for every 4,958 person, and in Sudur Pashchim Province, one banking branch serves 4,409 people,” the report reveals, adding that in Province 5, access to commercial banks has reached all local levels. “Six local units in Sudur Pashchim Province are still have no banks, whereas one local unit each in Province 1 and Gandaki Province lack access to banking and Province 2, Province 3 and Karnali Province have three unbanked local units each.
According to the report, some 60.9 per cent of Nepali population of 29.6 million now has banking access.

Khalti Android app reaches 500,000 downloads

In a sign that Nepalis are fast adopting digital payment methods, digital payment service provider Khalti’s Android app has crossed 500,000 downloads. The app has hit this milestone shortly after two years of its launch in the Nepali market, according to a press note issued by the company.
Elated by the achievement in this very short period, managing director of Khalti Manish Modi said that tens of thousands of users everyday load money to their Khalti wallet and consume it to make various digital payments. “Similar to Android app users, feedback from Khalti’s iOS app and web users is also equally exciting,” he said, adding that the company is working to create digital payment habits among all Nepalis. “We are extremely overwhelmed and excited to get love and support from users like this.”
According to the Nepal Telecommunication Authority’s (NTA) latest MIS report, Nepal has over 137 per cent mobile telephony penetration and 65 per cent broadband internet penetration. Likewise, the central bank’s latest statistics also revealed that over 8.3 million people use mobile banking in Nepal, apart from some 900,000 internet banking users.
But the World Bank’s 2017 Global Findex Database revealed that only 45 per cent of Nepalis are banked, giving a big role for the digital payments system like Khalti to bring unbanked population to the digital platform and provide financial services.
Started in January 2017, Khalti is an emerging mobile payment solution in Nepal. Khalti's service so far has reached 70 districts of Nepal and it's working to enable people in the remotest corners of the nation to use digital payment service. “Payment facility on mobile means one doesn't have to travel to district headquarters to perform tasks as simple as electricity bill payment, ultimately saving countless productive work hours for the nation,” Modi said, adding that Khalti has recently also conducted 'Smart Chhori' campaign and trained 10,000 girls and young women with digital and financial literacy and skills. “With its digital payment service and various such initiatives, Khalti is working to transform the lives of people in Nepal.”
Khalti has been providing various utility bill payment services including mobile recharge, DTH recharge, domestic flight booking, movie ticketing, event ticketing, hotel booking, newspaper subscriptions, online shopping payments, and insurance premium payments among various other digital payments services.
A licensed Payment Service Provider from the central bank, currently more than 800,000 people regularly use Khalti for various bill payment services.

Central bank to launch real time gross settlement system by mid-September

The central bank is launching the real time gross settlement system – to help ease settlement of online payment – in mid-September. “The central bank plans to launch the real time gross settlement system on September 15,” confirmed the central bank.
The real time gross settlement system is a fund transfer system in which money is moved from one bank to another in real time and on a transaction by transaction basis, which means there will be no waiting period. The real time gross settlement transactions can also be carried out between individuals via a legal framework. It is typically used for high-value transactions or urgent transactions that require and receive immediate clearing, according to the central bank.
“Once the system is activated, digital payment service providers will be incorporated in the system and they will be issued a separate licence to operate in the country,” according to the central bank. “Currentlym several digital payment service providers have been operating without being linked to the country’s payment system – which has led to revenue leakage and misappropriation of foreign currency – in the absence of a real time gross settlement system.
According to the central bank, real time gross settlement helps prevent risk by integrating digital payment settlement in its account before payment is passed to the collecting bank.
The central bank had – in April – banned accepting payment via AliPay and WeChat Pay – China’s most popular mobile payment platforms – as they have not been registered with the central bank. The central bank has termed the payments illegal as they were not incorporated in the country’s tax system, and Nepal was losing foreign income due to illegal use of these payment applications by Chinese tourists.
The central bank has after the incident is working – in collaboration with the Nepal Telecommunications Authority (NTA) – to introduce regulatory policies for digital financial service providers. The real time gross settlement system will help monitor all the payment systems, and payments of value added tax (VAT), income tax and excise duty can be made digitally.
Though, the payment system was under full control of banks and financial institutions (BFIs) until 2009, the operation of eSewa digital wallet in 2009, has changed the scenario of payment as customers can pay, send and receive money from their mobile phones and also over the internet even without a bank account. Apart from eSewa, there are many digital wallet products including Khalti, IME Pay, 4Enet Pay and I-Pay, currently.
Globally the central banks are facing the challenge to devise a mechanism to track payment settlement due to increasing number of digital payment service providers. Nepal Rastra Bank (NRB) – the central bank of Nepal – also was forced to bring Nepal Payment System Development Strategy with the aim of launching the real time gross settlement system.
Though, Nepal Clearing House was established as a public limited company in December 2008 to digitise cheque clearing services, it also looks after multiple payments, clearing and settlement systems. Apart from facilitating electronic cheque clearing services, it provides automated clearing house services in the form of the Interbank Payment System (IPS).
Fllowing the implementation of the real time gross settlement system, the clearing house will serve as an intermediary to enable banks to initiate and process transactions between the real time gross settlement system and its internal system, the central bank claimed, adding that the real time gross settlement system will help minimise systemic settlement risk in particular.

Nepal Satellite Telecom’s licence revoked

The license of Nepal Satellite Telecom (NST) has been automatically terminated as it failed to clear outstanding dues by the deadline that was yesterday, according to the Nepal Telecommunications Authority (NTA).
The private telecom company operating under the Hello Nepal brand owes some Rs 799.2 million as of July 16 as royalty, licence renewal fee, frequency fee, service expansion fee and Rural Telecommunication Development Fund (RTDF). But the Nepal Satellite Telecom has failed to clear its dues, despite repeated calls from the telecom regulator.
“The license has been automatically terminated as the company failed to pay its dues within the deadline of August 18,” the NTA informed, adding that the telecom company can, however, appeal within 35 days in regard to the automatic termination of the license, and the court’s verdict will be final in relation to its licence, if it moves to court.
“After a negotiation, the NTA had earlier directed Nepal Satellite Telecom to deposit the first tranche – Rs 70 million – of its dues by August 18 and clear the remainder of the outstanding dues within three months,” the NTA said, adding that the Nepal Satellite Telecom’s licence has been revoked automatically as the telecom service provider failed to deposit the first tranche of its tax dues by yesterday (August 18). “Had the telecom service provider paid the first installment, the company would have gotten an additional three months to clear the rest of its dues.”
Earlier, the telecom regulator asked Nepal Satellite Telecom to deposit its dues by the end of the last fiscal year. Instead of paying, the telecom company moved to the court to cancel the amount payable to NTA and an interim order was duly issued. But the Supreme Court refused to continue the interim order.
After the Supreme Court’s order, the NTA had – on July 22 – also sought a clarification from Nepal Satellite Telecom asking why its licence should not be revoked, to which the telecom company responded with a bargain that it would clear the dues, if it was allowed to expand its services in Kathmandu.
The NTA board meeting on August 3, however, directed the company to pay Rs 70 million – the first installment – within 15 days and pay the remaining amount within three months. But Nepal Satellite Telecom failed to deposit the Rs 70 million by August 18.
Nepal Satellite Telecom – owned by businessman Ajeya Raj Sumargi – has also been dragged into tax issues, earlier in May too. The Inland Revenue Department (IRD) had directed Nepal Satellite Telecom to pay Rs 4.31 billion capital gains tax (CGT) out of the gains the company made, while transferring 75 per cent of its share to TeliaSonera eight years ago.
Though NTA claimed that it was not in favour of scrapping licences of telecom service providers, they were obliged to scrap the licence as many telecom companies regularly failed to pay their dues by holding on to licences, not expanding telecom services as promised by them, and also not clearing applicable tax dues to the government on time.
But In February, the Public Accounts Committee (PAC) had directed the telecom regulator to recoup the amount and revoke the licences of all operators that failed to pay their dues within a month. Likewise, Finance Committee under the parliament had also instructed the Finance Ministry and Ministry of Communication and Information Technology to do the needful to recover dues from different telecom companies. The committee had even instructed the NTA to scrap their licenses, if they fail to clear their dues in time.
According to the authority, nine telecom service providers including Nepal Satellite Telecom, United Telecom, Smart Telecom, and BroadLink Network have yet to clear Rs 4.31 billion accrued as frequency charges, royalties, and RTDF.
In 2007, Nepal Telecom Authority had issued telecom service licence to Nepal Satellite Telecom that has been providing telecom services to a limited number of customers primarily based in the far-west region, though it had acquired licence to provide telecom services across rural areas. “The company did not expand its telecom services as was promised,” the regulator added.

Nepal Telecom’s profit growth rate slows down

Increased licence fee, foreign exchange losses, and falling revenues caused by changing consumer tastes and preferences has pulled the Nepal Telecom (NT) net profit down by 42 per cent – compared to the last fiscal year – in the fiscal year 2018-19 that ended on July 16.
According to a consolidated interim financial report released by Nepal Telecom today, its net profit dropped to Rs 10.20 billion in the fiscal year 2018-19 from Rs 17.48 billion in fiscal year 2017-18, after it was obligated to pay Rs 4.02 billion for the second renewal of its licence, which had expired in 2014.
The state-owned utility still has to pay around Rs 16 billion in pending licence fees to the Nepal Telecommunications Authority (NTA). And as the second renewal has also expired in May, there is uncertainty over fees for a third renewal too.
According to the telecom service provider, the company was obligated to pay Rs 20 billion, despite a dispute with the regulating authority over the payment of Global System of Mobile Communication (GSM) renewal fees, which had accrued on May 12, 2014.
Though, the government rescheduled – on May 24 – the payment, and allowed to settle in five annual installments from the fiscal year 2018-19 to save the state-owned, the employees' union of the NT has demanded that the fee be withdrawn.
According to a statement released by the union, the company which has a paid-up capital of Rs 15 billion – Rs 5 billion less than the fee amount sought by the regulator – should not be subjected to such a huge fee as it will lead to a massive financial burden.
The Nepal Telecom had received approval to sell GSM services in 1999. Since there was no fixed charges set for approval and renewal fees at the time. The telecom company had, however, agreed to pay the amount which would be paid by other service providers in the future.
In 2004, when Spice Nepal – now Ncell – began operations, it had agreed to pay Rs 210 million for approval to run GSM service and Rs 20 billion after 10 years for renewal, which has put pressure on Nepal Telecom to pay the same charge as default fees for renewal of the GSM licence.
Telecom operators are, now required to renew their licences every five years after 10 years of operation. “The issue of quantification of the GSM licence renewal fee that expired in May this year is not settled within the authority,” Nepal Telecom said, adding that the company renewed its licence by paying nearly Rs 190 million and has amortised the cost accordingly. “The fee liability of third renewal, if confirmed and quantified may result in further cost to the company and hence, the net profit after tax will be adjusted by that extent.”
Apart from renewal fee, the telecom also attributed the decline in its net profit to a fall in revenue as it recorded Rs 36.78 billion in total income in the last fiscal year, a drop of Rs 2.24 billion compared to revenues of Rs 39.02 billion in the fiscal year 2017-18. The fall in profit has hit the public listed company’s earning per share as it has dropped to Rs 68.05 per share from Rs 116.56 in a year, according to the unaudited financial statement of Nepal Telecom. “The company also suffered a foreign exchange loss of Rs 153.79 million in the fiscal year 2018-19 against a gain of Rs 635.55 million in foreign exchange in 2017-18.”
The marketing schemes also cost the company Rs 775.26 million in discount schemes on recharge card sales. 
The telecom has blamed growing use of over-the-top messaging services like WhatsApp and Facebook Messenger over long distance and domestic voice calls for the decline in revenue, despite a growth in subscriptions. Earlier, long distance voice calls used to contribute a major chunk to the revenue, according to the telecom that has planned to expand the 4G network – to again gain the market – and also replace ADSL with fibre to the home (FTTH) connection.
The political bickering and red tape also forced the telecom service provider to loose its ground with the private players.

Nepal Satellite Telecom gets a week extension to clear dues

Nepal Telecommunications Authority (NTA) has given Nepal Satellite Telecom (NST) an extension of a week to clear part of its pending dues, though the government has repeatedly directed to clear its dues.
According to chairman of the NTA Purushottam Khanal, , the company needs to pay Rs 70 million within August 18, while it can pay the rest of its outstanding amount within three months from August 18.
The company – owned by businessman Ajeya Raj Sumargi – needs to pay nearly Rs 1 billion as licence renewal fee, frequency fee, service expansion fee and fee for Rural Telecommunications Development Fund.
Earlier too the authority had allowed Smart Telecom extended time – in 2017 – to pay its dues.
However, this is the last chance for the the telecom company to keep its licence, he said, adding that the regulator is doing its level best not to have to scrap the operating licence of any telecom firm. “If the telecom company fails to abide by the regulator’s instruction this time, the NTA will revoke its licence.”
Nepal Satellite Telecom had filed a writ petition – seeking cancellation of the amount that it had to pay to NTA – at the Supreme Court but the Apex Court refused to give continuity to a stay order on a writ petition. A single bench of Chief Justice Cholendra Shumsher Rana on July 18 had refused to continue the stay order in favour of Nepal Satellite Telecom.
According to the telecom regulator, different telecommunication service providers have not paid dues worth Rs 2.96 billion to the government. There are some 153 telecommunication service providers in the country. United Telecom Ltd (UTL), Smart Telecom, Nepal Satellite Telecom, BroadLink Network are some of the telecommunication service providers that have not cleared their dues.
Smart Telecom – the largest one to pay dues – has to pay Rs 1.4 billion. Likewise, UTL has to pay Rs 795 million tax to the government as under frequency fee, royalty fee and renewal fee.

Number of 4G users soars by 125 per cent

The number of fourth generation (4G) mobile network users has reached 3.6 million within three years of being introduced in the country.
According to Nepal Telecommunications Authority (NTA), the number has increased by 125 per cent compared to last year. The recently published Management Information System (MIS) report of mid-April to mid-May revealed that the number stood at 1.6 million last year. “The 4G network was first introduced in Nepal on January 1, 2017 by Nepal Telecom (NT). Currently, NT, Ncell and Smart Telecom Pvt Ltd (STPL) are providing 4G service across the country, apart from Ncell that has the largest coverage of 4G service.”
The MIS report also revealed that there are a total of 2.6 million 4G subscribers of Ncell so far, whereas NT and STPL have 762,945 and 174,816 4G users, respectively.
Although NT was the first to start 4G service in the country, till date it has been able to provide 4G service only in Kathmandu and Pokhara, whereas Ncell is currently providing the service in 1,000 different locations of seven provinces.
Within two years of the 4G launch, Ncell has expanded the service in 44 districts but the STPL is providing 4G service in four major cities – including Kathmandu, Bhaktapur, Lalitpur and Pokhara – in the country.
Meanwhile, NT has divided the 4G expansion project into three categories including Network I, Network II and Core Network. While the Nepse-listed company has awarded the Network I and Network II categories of the project to CCSI, ZTE Corporation has been awarded the contract to develop necessary core network and radio access network for the expansion of 4G or Long Term Evolution (LTE) service.
Likewise, the number of mobile data users reached 18.6 million compared to 14.3 million last year, it revealed, adding, “Of the total number of data users, 10 million are 3G users while remaining 136,573 users are using networks that are below 3G capacity.”
According to the MIS report, some 63.31 per cent, out of the total population, are using internet service across the country. “Of the total number of internet users, some 49.65 per cent are mobile network users, 12.47 per cent are fixed broadband users, while 1.18 per cent are wireless broadband users,” it stated in the report.

Internet prices likely to go up from mid-July

Internet Service Providers (ISPs) have said that the Internet prices may go up by 20 per cent from the beginning of next fiscal fiscal year 2019-20, with the government levying 13 per cent telecommunication service charge (TSC), and NEA increasing the rental fee of poles by five times.
“If the government decides to continue with 13 per cent TSC on Internet service, we will be forced to hike the internet prices from next fiscal year,” Internet Service Providers' Association Nepal (ISPAN). The association said that the government – in its ICT policy – claims to make digital Nepal and expand the access to information technology, and on the other it is levying 13 per cent TSC making the internet more costly. “The decision of the government to levy additional taxes on Internet services also contradicts with the Broadband Policy-2015, which promises to bring down the cost by 2018,” it added.
Though, the cabinet meeting last week decided to provide tax waiver to ISPs on router, installation of intranet, lease line connectivity and maintenance, asking ISPs to adjust TSC on Internet package cost, the service providers have been adamant, as they have been cheated ‘according to them’ by the government in the current fiscal year.
The dispute between the government and the ISPs over Internet prices began last year when the government took a decision to levy TSC on Internet services. After the opposition from the ISPs, the ministry officials and ISPs held a meeting that ended with an agreement to adjust TSC in Internet package cost without putting additional burden on consumers. In return, the government assured subsidies and adjustment in taxes to service providers. But the government did not fulfill its promise and continue with 13 per cent TSC in the current fiscal year too, the association said, adding that they adjusted 13 per cent TSC in their package cost last time but the government failed to walk its talk, and the ISPAN is forced to increase its price this year.
The association also said that Internet prices will go further, if Nepal Electricity Authority (NEA) does not review its decision to hike rental fee of poles by five times. NEA has told the association that it will review the rental fee. The NEA has formed a committee that has representations from Nepal Telecommunications Authority (NTA) and ISPAN to review the rental fee.

Nepal Telecom Authority to set up IT centres in 124 remote villages

The Nepal Telecommunications Authority is setting up IT service centres at 124 remote villages to provide integrated government services, in line with the government’s ambitious Digital Nepal Framework-2018 that envisions a ‘digital society’ with 90 per cent of the population having access to broadband services by 2020.
The Information Service Centre Formation and Management Work plan – prepared by the authority –plans to install four computers, printing machines and networking equipment and expand broadband facilities from those centres to wards, health centres and community schools.
The information centre project has been launched to combat digital exclusion in 124 rural municipalities, which has no access to telecommunications facilities as of date.
According to acting chairman of the Nepal Telecommunications Authority Purushottam Khanal, the regulator is starting a tender process for procurement of equipment within a month. The authority has estimated that it will take around Rs 90.52 million to procure equipment to establish those centres. “The authority plans to mobilise funds collected by levying telecom operators service charges amounting to 2 per cent of their gross income to execute the project,” he added. “Almost half of the shortlisted local levels are located in the western provinces of Karnali (26) and Sudurpashchim (28), in line with the by-laws which state that the authority must give special priority to rural communities without access to internet and with measurable presence of marginalised and economically backward denizens.

Bar Telecos with dues from adding services, facilities and increasing capital

Parliamentary Finance Committee directed the telecom regulator to bar telecos from adding services, facilities and increasing capital until they clear their dues.
The committee has asked the Nepal Telecommunications Authority (NTA) to recover Rs 2.96 billion dues from different telecommunication companies. After the committee's diktat, the regulator had issued a notice on February 11 giving telecommunication companies one-month deadline to clear their dues. The deadline has already expired on March 10.   But the telcos asked the regulator to extend the deadline till mid-July – instead of paying the dues – saying that they need more time to induct more shareholders and investors to pay their dues.
The outstanding dues include taxes and fees like income tax, value added tax, frequency fee, renewal fee and compulsory contribution to Rural Telecommunication Development Fund, according to NTA.
Smart Telecom owes the highest at Rs 1.4 billion, whereas United Telecom Limited (UTL) and Nepal Satellite Telecom Pvt Ltd owe the government Rs 794 million and Rs 735 million, respectively, according to the regulator, that has decided to extend the deadline till mid-July as requested by some telecom companies. Though some companies has not yet responded to NTA's ultimatum, mid-July is the final deadline extension for them to clear dues, claimed the regulator.
The UTL is increasing paid-up capital to clear the dues, while Smart Telecom is planning to clear dues after bringing new investors. Likewise, Nepal Satellite Telecom is planning to clear dues in installments, after the regulator's letter.
The parliamentary Finance Committee had earlier instructed the Finance Ministry and Communication Ministry to recover the dues from different telecom companies. The committee had also instructed the NTA to start the process of scrapping operating licenses of the telecos that failed to clear dues within the deadline.
Meanwhile, the committee concluded that there are serious flaws in tax assessment systems, after studying tax compliance by telecom companies. "While studying ownership transfer of Ncell, the committee had asked all ministries concerned to submit details of shares transfer of Ncell and Spice Nepal, all minutes of decisions, and the list of officials of Finance Ministry, Nepal Rastra Bank (NRB), Inland Revenue Department (IRD), Large Taxpayers Office (LTO), who took decisions on assessment of CGT in Ncell buyout.
Chairperson of the Finance Committee Krishna Prasad Dahal said that government agencies cannot violate instructions given by the parliamentary committee. 

CG Telecom to operate mobile service

The Supreme Court has ordered the Nepal Telecommunications Authority (NTA) to allow the CG Communications (CG Telecom) to operate its mobile service. A single bench of Justice Deepak Raj Joshee issued the verdict in this connection today, paving the way for the CG Telecom to bring the mobile service – popularly known as 4G service – within 2019.
After the apex court's order, Chaudhary Group (CG) said that the company will expedite process to launch the mobile service at the earliest. "Following the court's order, our company is now ready to launch the mobile service," spokesperson at the CG Group Madhusudan Poudel said.
The CG Communications had filed a case at the Supreme Court after the authority did not allow the company to run the mobile service even though the company had already acquired Unified license.
A cabinet meeting – on Jestha 14, 2074 – had decided to give license to the CG Telecom to operate the mobile service in May 2017. But the telecommunications regulator has been putting on hold the government the decision. 
Though the government had already decided to provide basic telephony license to CG Telecom, the authority invited telecommunications companies for the auction of residual spectrum in 900/1800/2100 MHz band on Poush 4, 2075. The CG Telecom went to Supreme Court against the frequency auction, which hinders them from getting frequency spectrum. Without frequency spectrum, no telecom operator can start any of the mobile service operation (2G, 3G, 4G).
The SC decision also directs NTA to treat CG Telecom in the same way as other telecom operators. Putting the spectrum auction on hold, SC instructs NTA not to hinder in any way for the operation of mobile service by giving permission to bring equipment and operate with frequency spectrum.
CG Telecom had already started paying the pending sum for the royalty and frequency fees in installment, Poudel said, "Out of total Rs 360 million, CG Telecom has paid the first installement to NTA."
CG Telecom is a subsidiary of Chaudhary Group (CG), the multi-national company from Nepal which manufacturers Wai Wai, owns Nabil Bank, CG Electronics, hotels, insurance and more. Paudel also hinted that the company has already finalised the Strategic Partnership with world renowned International company.

NTA chairperson Jha resigns

After three month-and-a-half of his appointment, the chairperson of Nepal Telecom Authority (NTA) Digambar Jha has resigned from his post. He submitted his resignation to communication minister Gokul Baskota today afternoon.
Sensing that the incumbent KP Sharma Oli-led government is going to sack him due to the pressure from within the party, he has put in this paper today afternoon. Before the election, he was appointed by the then Sher Bahadur Dueba-led government. But Jha lost his job after a cabinet meeting on July 4 decided to scrap the appointment made by the erstwhile government of Deuba. Jha had moved the court against the decision of the government. But after agreement with the communication minister Baskota, he took his case back.
Later, Jha was re-appointed as the chairperson of the regulator of the telecommunications sector on September 6 through 'open competition'. It was his third stint as the chairperson of the NTA. But his appointment was controversial within the ruling party itself, and outside of the party.
After a Standing Committee meeting of the Nepal Communist Party (NCP) last week extensively criticised his appointment, some 43 leaders of the ruling party – the day before – has also submitted a memorandum to the chairperson duo KP Sharma Oli and Puspa Kamal Dahal 'Prachanda' asking them to sack the 'corrupt' Jha. Minister Baskota has been blamed for appointing him by taking bribe.
Feeling the heat, Jha today morning organised a press meet and blamed the ruling party for his character assassination. He also challenged them to prove the corruption charge. He claimed that he was going to scrap the licence of UTL, STL and CG as they have been only holding the licence. "There are only two players, Nepal telecom and Ncell, which are serving the customers," he said, adding that one additional multinational player will be enough for the domestic market.

MIT launches global start up labs in Nepal

The US-based Massachusetts Institute of Technology (MIT) launched MIT Global Start-up Labs (GLS) – a global initiative that promotes technology entrepreneurship among youths, especially in emerging nations – in Nepal.
Sri Lankan envoy to Nepal Swarna Perera; cultural affairs officer of US Embassy Grace Caroll; senior director of Nepal Telecommunications Authority (NTA) Ananda Raj Khanal; registrar of KU Professor Bhola Thapa, MIT’s Prof Amarasinghe, and MD of Ncell Amarasekera jointly inaugurated the MIT GSL in Nepal.
The MIT, Ncell and Kathmandu University (KU) will jointly collaborate to promote technology entrepreneurship in Nepal targeting the country’s technological advancement, a press note issued by Ncell reads. "This collaborative effort that focuses on mobile technology and entrepreneurship, will engage 35 selected students of KU to take part in an intensive boot camp where instructors from MIT will help them grow as entrepreneurs and foster start-ups."
The boot camp will last until August 2 starting today. MIT GSL-Nepal will last for seven weeks, during which the students will develop start-up projects, from ideation stage to execution, it adds.
MIT has been conducting such programmes since the last 18 years in 25 countries, including India and Sri Lanka in South Asia, promoting economic development by cultivating young technology entrepreneurs.
The MIT GSL programme focuses on mobile and internet technologies and is structured so that students are exposed to the commercial possibilities of technologies.
"We are delighted to partner with MIT and KU to bring the MIT GSL programme to Nepal," managing director of Ncell Suren J Amarasekera said, adding that it is in line with the company's vision to help nurture ‘technopreneurship’ spirit among young talent through innovation.
During the launch event, faculty director of MIT Global Start-ups Lab at MIT Prof Saman Amarasinghe said that the programme has trained nearly 3,000 budding entrepreneurs across the world to become leaders in the new information economy. "MIT has brought GSL programme to Kathmandu for the first time," he said, hoping that some of the participants will be able to use this experience to revolutionise Nepali digital ecosystem and even make a global impact.
Likewise, vice chancellor of KU Prof Ram Kantha Makaju Shrestha, on the occasion, said that the boot camp will provide the participating students an opportunity to get utmost exposure and encourage them to go back to their own community to identify their needs and the potential that exists in their own community and come up with innovative ideas that would be globally validated and propagated.