The Nepal Telecommunication Authority (NTA), the country’s telecom regulator, renewed Ncell’s operating licence for the third time on Sunday (September 1) after Ncell paid the first instalment of the renewal fee.

The government had decided last Thursday to allow Ncell to pay the Rs 20 billion renewal fee to continue its operation for the next five years in four instalments. However, the leading private sector telecommunication service provider would be charged a 10% interest from the second instalment.

Sunday was the deadline for Ncell to get its licence renewed.

“Ncell has paid Rs 5 billion as first instalment,” said Santosh Paudel, spokesperson at NTA. “So, its operating licence has been renewed on the condition that it will pay the remaining fee in three instalments of Rs 5 billion each, with 10% interest on each instalment.”

“Ncell can also pay the remaining amount in advance,” Paudel added.

NTA had earlier said that Ncell needed to pay a total of Rs 23 billion, including Rs 3 billion in fines, for the renewal after it paid only Rs 4 billion earlier this year on May 27.

People privy to the matter had earlier told the NBA that Ncell had requested the NTA twice, in writing, to allow it to make payments in five instalments in five years, saying it was not financially strong to make the full payment at once.

But the NTA had rejected Ncell's request, demanding the payment in a lump sum.

Section 12 (3) of the Telecommunication Regulations states that a telecommunication service provider must apply for the licence renewal with the total fee three months before its licence period ends.

Otherwise, the service provider will be charged a fine equal to 15% of the renewal fee.

People close to Ncell had accused the government and the regulator of not treating the private and government-owned telecommunication service providers equally.

They said that it was a discriminatory behaviour to not charge Nepal Telecom any fine or interest when it was late in paying the renewal fee by five years, but to ask Ncell to pay renewal fee in lump sum and other dues in advance.

Ncell, which got the licence for providing cellular mobile services on September 1, 2004, renewed its licence for the first time in 2014 and for the second time in 2019.