MDMS in Nepal | Mobile Device Management at NTA 2024 Update

Nepal Telecommunication Authority (NTA) officially announced the implementation of the full version of the mobile device management system (MDMS) in Nepal on Monday, Kartik 20, 2080 (November 06, 2023). The mobile security system has been implemented to keep mobile phones registered for their operation in Nepal in view to enhance their security. But after the initial shockwaves it sent across phone users in the country, we haven’t really heard much about it for almost a year now. In this post, we discuss the current status of MDMS in 2024, its effects on mobile import and use, and whether it’s even as effective as it seemed for a few weeks after its grand launch.

After its supposed full-version launch in Kartik, 2080, NTA had MDMS underway and blacklisted some high-end phones including iPhone 15 Series. it was barring them from receiving cellular networks with a Nepali SIM card inside. This means, that with network lock, mobile phones can use WiFi network but no carrier services for calls, SMS, and data services. The purpose of MDMS is to block phones that are not registered in NTA’s MDMS server.

Do read: NTA implementing TERAMOCS to monitor telecom services

What is MDMS?

MDMS is a mobile device management system brought live by Nepal’s telecommunication regulator Nepal Telecommunications Authority (NTA). The system is the result of years of plans, and development, hiccups, and materialization. The system primarily wants to keep mobile devices “checked” by keeping their identities in its servers. Therefore, MDMS makes phones’ IMEI (International Mobile Equipment Identity) registration mandatory for their operation in Nepal.

However, the government has more reasons to bring this regulatory infrastructure into practice. With MDMS, NTA will not just incapacitate unregistered phones to provide telecom services, it will also help with crime investigation, retrieval of lost/missing phones, and importantly help collect revenues. For a regular user, the gist is, that without MDMS registration, a phone won’t be able to connect to any mobile network in Nepal and hence no call, data, and SMS services.

What Will MDMS Do to Unregistered Grey Phones?

One of the prime objectives of MDMS is to block or contain the use of grey phones across Nepal. Such phones are brought into Nepal evading customs charges so they are not ideal to use in legal terms. So, the government seeks to network lock on these phones. Here are what MDMS will do to grey phones:

From now on, MDMS will come with several ramifications on grey phones operating on any network in Nepal. such as:

• First of all, some grey phones were made inoperable after Kartik 20, 2080.
• In case such a phone is lost, one cannot lodge a police report for it. If one does, the chances are they will find themselves in jeopardy for using an unauthorized device.
• After the phone is blacklisted, your unregistered grey phone won’t be able to connect to any carrier network in Nepal. It will not be compatible with any telecom network from Nepal in the future. The phone won’t show any network signal.
• Since the unauthorized phone does not receive any signal, its utility will be a bare minimum. You cannot avail yourself of any telecom service and the device becomes almost useless as a brick.

Then again, a grey phone evades government registration, taxes, and regulation. The black marketeer or the smugglers sneak into the country via illegal routers and circulate such phones at large. The public buys them because they are cheap, without realizing the broader risk they entail. Eventually, it also raises a moral question- Should one use an illegal phone at all?

Nepal imports roughly one million sets of phones monthly. Out of those, 2,50,000 phones remain unauthorized. This has cost the government around NRs. 7 billion per year, sources say.

MUST READ: What Will Happen to The Grey Phones After MDMS Implementation?

How to register a mobile phone in MDMS Nepal?

To register your phone in MDMS, follow the steps below:

• Step 1: First, visit the link to validate your IMEI number first
• Step 2: Now, enter your phone’s IMEI number, phone brand, and model and confirm whether the phone is currently in use or not
• Step 2: After entering the details, click on Validate IMEI and Continue
• Step 3: Enter your email address, click Request for OTP, check your email, enter the OTP code there, and your email address is verified on the MDMS portal
• Step 4: Next, you need to enter when and where you entered Nepal and also need to provide your personal details. This also includes your passport number and your nationality. Then, you need to fill in a different set of details depending on your nationality.

Check out a detailed post on the process to register mobile IMEI in NTA MDMS.

MDMS registration for Nepali citizens and foreigners

For Nepali nationals: If you select Nepali as your nationality, you need to enter your address. You must also mention whether the phone you have is for your personal use or for others. If you brought your phone as a gift for others, the option is for you. Select between ‘Self’ and ‘Others.’

Foreigners: In case you are not Nepali by nationality, you need to provide your address in your home country and submit your visa validity date. If you wish to extend your Visa, then you must renew your phone’s IMEI validity with the same process.

Step 5: Now, you need to recheck your details. Please make sure the details are accurate before you submit them. You will need to upload and submit a scanned copy of your passport, and an entry stamp from the immigration department/boarding pass. Now you do not need to submit proof of purchase of your smartphone which was mandatory before. (The scanned file should be in .jpg or .jpeg format and not exceeding 512 KB in size).

NTA’s system checks the details and decides whether to approve your registration or not.

Benefits of MDMS

The two prominent bodies also highlighted the benefits of MDMS:

1. The government can generate revenue of around Rs 4 billion annually.
2. Customers won’t be buying stolen, counterfeit, and low-quality phones unknowingly.
3. Details of every IMEI user will be shared with the Nepal Telecommunication Authority, which will help the Nepal Police in the case of an investigation in need.
4. Entrepreneurs contribute through tax payments to the government and by maintaining their assets, such as houses and farms in banks. They not only safeguard their own interests but also protect the livelihoods of millions of Nepalis who depend on this business sector.
5. If the government can arrange 100% excise duty and VAT refund, mobile phones in Nepal, the industry can start and mobile phones will be available at a lower price than abroad.

Do read: Communication Minister Sharma Calls for Phone Assembly in Nepal

MDMS implementation timeline

MDMS operation has witnessed several debates, issues, and even protests before its coming into operation. It’s been a lengthy work in progress, to say the least. Here, we have compiled the timeline of MDMS in Nepal.

• In 2018, NTA issued an Expression of Interest (EOI) first for MDMS. In the notice, the then Chairman said that MDMS is “focused on tracing illegal and non-registered mobile devices in Nepal, on minimizing the import of mobile phones through grey market and to encourage the sale of genuine mobile handsets in Nepal.”
• After 2 years of plans and work, MDMS made substantial progress and went live on Shrawan 01, 2080.
• Full launch on Jestha 01, 2079. But due to the lack of preparedness and technical needs, it didn’t.
• MDMS then went functional on Bhadra 30 but not at its full capacity.
•  The authority announced that the full launch of the system will be on Poush 15, 2079. However, PM Pushpa Kamal Dahal “Prachanda” gave an executive order not to implement it. This was because NTA had mentioned that Nepalese working abroad would have to pay customs charges for bringing additional handsets to customs. In response, disgruntled Nepalese ran a #noremittance campaign on Twitter expressing their disapproval of MDMS and more particularly custom charges at customs for new phones.
• As a result, a Cabinet meeting took place on Baisakh which decided to implement MDMS on Jestha 01, 2080. NTA gave a month for mobile phone registration.
• NTA announced the full implementation of MDMS on Monday, Kartik 20.

Check out: NTA implements new telecom bylaw along with compensation

Mobile phone industry faces a huge challenge from grey phones in Nepal

In mid-2079, Nepal Mobile Distributors Association and Mobile Phone Importers Association held an event in Kathmandu. At the event, they called on the government to speed up the effective operation of the mobile security system. Stating that there is still Rs. 15 billion of grey phone sales and distribution, the market bore a great loss due to the lack of full mobilization of MDMS. Together, they highlighted the challenges the mobile industry faces from the grey phones:

1. The Government of Nepal loses Rs. 3 billion in revenue every year.
2. Some of the phones that come to Nepal may be counterfeit. However, users may not be aware of this, as they may have paid the same price as a legitimate phone. This could potentially result in cheating of the public for the phone they spend their money on.
3. Nepal Police face difficulty in solving investigations due to the lack of MDMS.
4. Traders are migrating due to declining businesses, low-profit margins, and the
   burden of taxes and financial obligations.

Read the detailed process for how to report and track lost/stolen phones online

Nepalese can bring two phones in Nepal from foreign countries

As per the authority, phones that people bring in for their personal need to register the phones, within 15 days. As per the government’s “Private Use Goods Order 2077”, mobile sets brought from abroad for personal purposes can go through registration with the necessary documents.

How much does it cost to register my phone in MDMS?

NTA has fixed different costs for different mobile phones depending on their platform and price. If it’s an iPhone or any device that costs Rs 1 lakh or above, the MDMS registration costs you Rs 10,000, for Android phones below Rs 1 lakh, the MDMS registration cost is Rs 3,000, and for general phones, it’s Rs 300. However, NTA has already closed this portal to register the grey phones, as they launched it to give one last golden chance to register in MDMS by paying fees.

SN	MDMS phone registration cost	Fee
1	iPhones	Rs 10,000
2	Any phones above Rs 1 lakh	Rs 10,000
3	Android Phones (< 1 lakh)	Rs 3,000
4	Bar phones	Rs 200

Do note: In case you do not have official documents to submit for your grey phone registration, you can still go ahead by paying an amount.

Read in detail: Grey phone registration cost in MDMS: For Android, iPhone, Bar Phone

How to check if my phone is registered in MDMS Nepal?

NTA has urged future phone buyers to first verify if the phone is already in the MDMS in Nepal. You can check to see if your device is already registered in NTA MDMS with the steps below:

• Go to the NTA MDMS https://mdms.nta.gov.np/public
• Enter your phone’s IMEI on the field to your left.
• Click on Search.
• If your device has already been registered in MDMS, you will get a corresponding response or if otherwise, you will be given a link to register your device. Check the screenshots below for your clarity.
• For better confirmation, you need to check both IMEIs if it’s a dual SIM phone.

Well, MDMS is not looking like it’s active but anyway, it’s a federal system and it’s best you comply with it to evade possible hazards. So, if your phone doesn’t fall in that category, your phone will be able to connect to mobile networks before getting blacklisted.

Do read: Mobile Number Portability (MNP) in Nepal

MDMS On Telcos’ Servers

With MDMS implementation in place, they need to integrate it on NTC and Ncell servers. So, every phone will only access the mobile network after the verification of the mobile in the central MDMS database at NTA. However, such a fully functioning Central database of all IMEI is still not operational despite the regulator’s claim. For now, NTA will ask the telcos to manually blacklist the grey phones identified so far.

This will also help phone owners when they lose their phones. For example, if someone complains about their phone’s theft to the telco, the company will have the capacity to restrict any service when a new SIM becomes active on the device.

Likewise, the Centralized EIR system will be beneficial for all; the government, traders, and mobile phone users. It will curb the circulation of unauthorized phones in Nepal and contain the grey phone market. The government will raise more revenues at customs and the owners will be able to assure themselves of their devices’ legality.

Is MDMS even working in 2024?

Technically no. MDMS is not fully active at the moment. We can even argue that it isn’t operational as NTA is not able to fully implement the necessary equipment to run the system. But also, it has been marred by corruption labels. CIAA has been running its investigation on 21 people including two former NTA chairmen on charge of corruption in the purchase of the equipment for MDMS.

So to come to the question again, yes, MDMS is not be operational so far in 2024. But it’s best suggested to you that if you happen to use a phone that’s imported or came to you as a gift without registration, go and do it to avoid possible ramifications that might occur in the distant future.

Important FAQs about MDMS

Here are some frequently asked questions (FAQs) about MDMS in Nepal. Find out what it is and what it does to mobile phones below:

What do you think of NTA’s MDMS project that mandates every phone’s registration in its system? Do you think it’s going to lower the number of grey phones in Nepal? Drop your opinion below in our comment section.