KATHMANDU: Ncell, a prominent telecommunications provider, is facing a crucial deadline to renew its license by paying 20 billion rupees before May 18, as mandated by the Telecommunications Act. The expiration of Ncell's 20-year license on August 31, 2024, necessitates renewal three months in advance, in line with legal provisions outlined in Section 25 of the Nepal Telecommunications Act 2053.

This renewal process marks the third instance for Ncell, following previous renewals at the 10 and 15-year milestones. Negotiations for Ncell's previous license renewal in 2061 BS resulted in a payment of 20 billion 13 million 27 thousand 50 rupees. Hence, the current renewal requires Ncell to pay 20,130,275,000 rupees, with potential additional fees.

In contrast, Nepal Telecom recently renewed its license by adhering to legal requirements, paying 20 billion rupees and 21 million for the license fee. Santosh Poudel, spokesperson for the Authority, underscored the significance of completing Ncell's renewal process by May 18. Failure to meet this deadline could incur a 15 percent fine if renewed by August 31, or automatic cancellation if the deadline is missed entirely.

Furthermore, the government's decision during a cabinet meeting on February 18, 2024, specified that Ncell's license renewal is contingent upon eventual ownership transfer to the Government of Nepal, without any alteration to the company's share structure. Moreover, the continuing legal disputes between Ncell and the Nepal Telecommunication Authority regarding frequencies and taxes may impact the terms of the license renewal, potentially resulting in additional conditions being imposed on the company.