Govt Fails to Act on Smart Telecom Asset Management

The government has shown indifference toward managing the assets of Smart Telecom, whose operating licence was revoked two years ago for failing to pay the renewal fee in advance.

Although the Nepal Telecommunications Authority (NTA) revoked the company’s licence and took control of its assets, the government has yet to manage them, resulting in stalled liability settlements and financial clearances.

A Smart Telecom official told New Business Age that the company’s liabilities have been increasing daily due to the NTA’s delay in initiating timely asset management procedures. “Our distributors’ pressure is mounting every day, and the burden of loan interest payments to banks continues to grow,” the official said.

The company has also failed to pay rental fees owed to property owners where its telecom towers are installed. “Electricity bills for the towers have not been paid either. As a result, the Nepal Electricity Authority has disconnected electricity lines connected to tower sites, creating further pressure from the affected property owners,” the official added. “At present, even the personal safety of the company’s shareholders and their families is under serious threat.”

One of Smart Telecom’s shareholders had filed a complaint at the Office of the Prime Minister and Council of Ministers earlier this year, expressing concern over the government’s inaction. The petition stated that due to the NTA’s delay in completing the process of asset management, shareholders have been unable to use their assets or clear liabilities. The shareholder also demanded that the government release the company’s assets and infrastructure to allow repayment of dues. However, the government has not responded so far.

According to existing regulations, the government must form a valuation committee to assess Smart Telecom’s assets and liabilities. The committee would determine the company’s asset value and oversee auction procedures to recover dues owed to the government, the NTA, and other institutions.

Although the Telecommunications Service Provider Property Management Regulations allow four to six months for the valuation process, the committee has yet to be formed.

A source at the Ministry of Communication and Information Technology said the NTA had already recommended names for consultants to serve on the committee, but the decision has not been finalized. “There has indeed been some delay in forming the committee, but we will soon move the process forward,” the source said.

Smart Telecom, a private telecom company which began operations in 2008, had its license revoked in 2023 after allegedly failing to pay licence renewal fee, frequency and royalty dues. Although the government now controls the company’s assets, valuation and management processes remain unresolved.