Last Updated on April 3, 2024
The Internet Service Providers Association of Nepal (ISPAN) has issued a statement that Internet service providers (ISPs) don’t charge their customers for rural telecommunication development funds (RTDF) and royalties. While releasing its statement on the ongoing debate over payment dues to the Nepal Telecommunications Authority (NTA), the ISPs’ umbrella association also said that the 50% support and maintenance fee charged to customers is within the law.
ISPAN has been drawn in debates recently over its payment dues to NTA. It says that given that it has not charged customers royalty and rural telecommunication development funds (RTDF) under non-telecom services. At the same time, it stated that service providers have fully paid payable fees to the regulator from royalty and RTDF received from customers.
In its press statement, ISPAN said that no internet service providers have charged their customers for support and maintenance fees in royalty, RTDF, and other charges.
“We inform that ISPs don’t charge RTDF and royalty under support and maintenance fee in our bills because they don’t count as such,” ISPAN said in a press release.
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The government has allowed ISPs to charge 50% in support and maintenance fee
Further, ISPAN says that a council of ministers meeting on 2076/04/14 has allowed ISPs to charge up to 50% support and maintenance fees in their bills. It is noteworthy because the support and maintenance fees are often a hot topic among internet customers. But, as ISPAN says it’s legitimate for service providers to charge the amount to customers.
In its 56th, 57th, and 58th reports, the Office of the Attorney General had pointed out some settlements due in RTDF and royalty. However, the Public Account Committee’s 20th, 21st, and 22nd reports have suggested removing the “due settlements.”
Likewise, Nepal Telecommunication Authority Bylaw 2068 Regulation 5 (1) holds that service providers need to submit 2% of their revenue to NTA annually for RTDF. ISPAN argues that support and maintenance are established as non-telecommunication services so it doesn’t attract RTDF payment.
Likewise, the Telecommunication Regulations 2054 rule 26 states that licensed entities need to submit 4% of their annual revenue to NTA in royalty. Therefore, ISPAN argues that support and maintenance titles are non-telecommunication services and attract no royalty fee.
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ISPs are worthy of incentives, not accusations
ISPAN also mentioned that ISPs deserve incentives from the government, not indictments for investing billions of rupees for the country’s telecom services bearing heavy loans. ISPs have established digital foundations and contributed to the development of the country and deserve empowerment more than anything. In its statement, ISPAN reiterates that no ISPs have ever charged RTDF and royalty for support and maintenance from its customers.
ISPAN demands that every ISP is mandatorily present should there be a need for discussion and consultation on any regulations, laws, and bylaws to sort out any differences of opinion.
