Kathmandu- Private sector telecommunications service provider Ncell has urged the government to reconsider its decision not to renew the company’s operating license after the next four years, alleging discriminatory treatment and policy inconsistencies.
In a formal letter submitted to Prime Minister Sushila Karki, Ncell Services Limited (NSLEL) requested the Government of Nepal to review the Council of Ministers’ earlier decision, calling on the government to acknowledge Ncell’s long-standing contribution to the country’s telecommunications sector.
Ncell has accused the government of failing to ensure a level playing field between private and state-owned operators, particularly Nepal Telecom, and of not adequately protecting foreign investment. The company has objected to being charged a 10 percent interest rate on installments paid toward its license renewal fee, claiming this placed it at a disadvantage.
According to the letter, Nepal Telecom has been allowed to pay license-related installments without interest, while Ncell has been subjected to additional financial liabilities. Ncell estimates that this differential treatment will impose an extra interest burden of approximately Rs 2.55 billion, which it says could significantly affect network expansion and service improvement plans.
Ncell has also defended the December 2023 transfer of Axiata’s shares—from Reynolds Holdings to Spectralite UK—stating that the transaction was conducted in full compliance with Nepal’s prevailing laws. The company has expressed dissatisfaction over the government’s failure to formally acknowledge or approve the transaction, demanding immediate recognition.
The company stated that it had already informed the Department of Industries in accordance with the Foreign Investment and Technology Transfer Act, but claims that the lack of formal acceptance has created regulatory uncertainty.
Ncell has further raised concerns over provisions of the Telecommunications Act that mandate the transfer of company ownership to the government after 25 years, as outlined in Section 33. It has objected to restrictions preventing changes in share structure under this provision, arguing that such rules demoralize foreign investors and violate fundamental property rights. Ncell maintains that recent regulations introduced on this basis have further undermined investor confidence.
Highlighting broader sectoral challenges, Ncell pointed to declining revenues due to the rapid expansion of over-the-top (OTT) services, high frequency charges, and what it described as excessive taxation. The company warned that if current policies persist, telecom operators may struggle to meet even basic operating expenses within the next three to four years. It has called for timely revisions to frequency charges and service fees.
As a possible resolution, Ncell has proposed converting itself into a public limited company and issuing shares to the general public through an initial public offering (IPO). The company said this would allow Nepali citizens to participate in its ownership and help transform Ncell into a more nationally integrated entity.
In its letter, Ncell urged the government to reassess its decisions in line with the objectives of the Digital Nepal framework, stressing that policy stability, regulatory fairness, and protection of foreign investment are essential for the long-term sustainability of the telecommunications sector.
