April 15: The cost of telecommunications services in Nepal is double the rate in other countries, which is a violation of the Consumer Protection Act, 2018, according to the 56th annual report of the Office of the Auditor General (OAG).
The OAG report has suggested the Ministry of Communication and Information Technology and the Nepal Telecommunication Authority (NTA) to regulate the telecom companies charging high rate to the consumers. The OAG compared the operating profit of Nepali telecom companies with telecommunication service providers in the United States, the United Kingdom, China, Malaysia, India, Japan, among others, calling for a review in the service charge of the telecommunication operators in the country.
The report shows Nepali telecommunication providers have high operating profit, and are charging hefty service charge to the consumers. According to the OAG, the operating profit of telecommunication providers in foreign countries stands at 24-37 percent of the total income, while the profit of two telecommunication giants in Nepal is up to 62 percent.
The OAG also concluded that the telecommunications regulatory body has not regulated the service charges imposed by the telecom companies in Nepal.
The report shows that a telecom company in Germany has operational profit of 24 percent. Likewise, a telecom company in India has operational profit of 36.40 percent.