The government has cleared the way for companies like WorldLink, which have completed 25 years, to renew their internet service provider licences by removing legal hurdles.
A recent cabinet meeting amended the Telecommunications Regulations, 2054, as proposed by the Ministry of Communications and Information Technology, making it easier for service providers to renew their licences. This change allows internet providers such as WorldLink Communication and Mercantile to continue their operations.
The amendment permits licences to be renewed for a maximum of 25 years at five years’ interval. However, the service providers are required to have settled all their outstanding dues to the government before they can renew their licences.
Before the amendment, Article 25 of the Telecommunications Act had a provision that a licence coould last for a maximum of 25 years, with the first licence being issued for 10 years and subsequent renewals limited to five years each time. Applicants wishing to renew their licences had to submit their application and pay the renewal fees at least three months before their current licence expired.
However, it was not clear what would happen after 25 years. This uncertainty left service providers like WorldLink and Mercantile unable to continue their services legally after their 25-year term expired. The recent changes mean that they can now operate as internet providers for an additional 25 years.
For the past seven months, WorldLink and Mercantile have been without valid licences. WorldLink received its licence from the Nepal Telecommunications Authority on March 30, 1999. According to a WorldLink representative, the company submitted its renewal application in January 2023, but the process did not move forward.
"The government has now clarified what will happen to our licence, and it’s great that we can continue operating under the same licence," the representative said. Mercantile Communication’s licence also expired on March 21 and will now be renewed as well. Both companies are among the oldest internet service providers in Nepal.
Subhash Khadka, Chief Executive Officer of the Internet Service Providers Association of Nepal (ISPAN), welcomed the government's recent decision, saying it is vital for the continuity of internet services. "Companies like WorldLink and Mercantile Communication faced challenges after completing 25 years. The removal of legal complexities regarding the renewal of licences is a positive step."
Khadka also suggested that the government should facilitate payments to upstream service providers by recommending foreign currency.