NTA has again stepped up an effort to form a price determination committee to manage property of Smart Telecom (Smart Cell). The authority has officially announced initiative after two years of revoking the private telco’s license.
In a notice, NTA requested willing Chartered Accountants to submit their expression of interest (EoI) application for the task. The authority mandates that for this, CA must have a degree from a college and have at least 10 years of experience.
But it’s not the first time that NTA has taken an initiative to determine Smart Cell assets. Previously too, the authority made an attempt. However, it never came to fruition due to the lack of an able candidate.
After Smart Telcom failed to pay off its chargers and didn’t submit an application, the telco’s license was automatically revoked as per the law back in Baisakh 2079. However, even after two years, the authority has not been able to settle its property management.
The private operator was given a deadline till Baisakh 03 to pay its renewal charges of Rs 20 billion and Rs 3 billion in fines to NTA. But the company failed to comply. In response, the telco went to court but its hopes have been dashed.
The Telecommunication Act, 2053 holds that if a company fails to pay its renewal charges, its operating license expires automatically. The company was required to pay its dues by Magh 02 and was on a deadline by Baisakh 03.
Smart Cell received its license on Baisakh 02, 2070.
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NTC to form committee for property management of Smart Cell
NTA will now move towards the management of Smart Cell in accordance witht the “Property Management Regulations of Telecommunication Service Providers Without a License 2079 bylaw“. After bringing aboard CA and other human resources, the authority will start with evaluating the company’s assets and property and gradually complete its takeover.
The authority will have a committee responsible to carry out the telco’s asset management study. Smart has a liability of a total of Rs 30 billion to pay to NTA in license renewal, frequency charges, royalties, fines, etc.
Relief in sight for the Smart Telecom “victims”
NTA’s formal attempt at forming a price determination committee comes as a delight and relief to the telco’s “victims.” Smart Cell’s recharge card sellers, houseowners where the company’s mobile towers have been installed, and owners of other facilities that Smart Telecom used for its cellular servvices will now expect to receive due from NTA soon.
Earlier, Smart Cell victims had staged a sit-in protest at NTA seeking payment from the authority. The demonstration was not an isolated event. But it did play an important role in compelling the regulator to call for a committee to determine the price of the company’s equipment and other infrastructures.
Patan High Court upheld Smart Cell license revocation
NTA revoked the license of Smart Telecom on Basiah 04, 2079. Before that, Smart Telecom had already filed a petition in the Patan High Court with the demand that it should not have to pay tax in installments like other telecoms. It also demanded the termination of the license cancellation process immediately.
The first writ didn’t produce an interim order. The court called both parties to discuss the interim order. But after the authority decided to revoke the license of Smart Telecom, a writ was registered again on behalf of Smart Cell demanding that the decision not be implemented.
On the hearing of the second writ, the bench of Judge Narishwar Bhandari issued an order not to implement the authority’s decision on May 4th before the hearing of the old writ. But on the latest hearing, it was decided that NTA’s license revocation of Smart prevail.
Also read: NTA calls internet cable cutting a human rights violation
Search for the third operator wide open!
With the country’s third largest telco’s operating license repealed, Nepal now officially has two operators -Nepal Telecom (NTA) and Ncell. That also means the quest for the third competitive operator might start now in earnest. The airwaves of Smart could go to the new entry into the telecom market in Nepal. But the subsequent developments will be interesting to see.
Binod Chaudhary-led Chaudhary Group has been open on its telecom ambition so all eyes will be on how the business conglomerate proceeds in the coming months and years. For now, it’s certain that Smart was never the answer to the duopoly of the two leading operators. Don’t miss: Is CG Telecom Getting Smart Cell’s Frequencies?
Smart provides 4G and 2G services for broadband and voice. As per the latest NTA data, the company has over 24 lakh GSM telephony subscribers. Likewise, over 1.07 lakh users remain on its fledgling 4G network.
The saga of Smart Cell’s telecom service license has come to an end. Now, do you want a third and proper telecom operator to serve Nepal’s growing smartphone users? Or are you content and satisfied with the services of the existing companies? Do share in the comments below.
