The license for the Rural Telecommunication service of Chaudhary Group (CG)’s telecom company CG Communication Limited has been officially revoked. The telco regulatory body Nepal Telecommunication Authority (NTA) released a notice on Thursday, Jestha 24, 2081, notifying that the company’s license expired on Mangsir 16, 2080.
The company lost its validation after failing to submit an application for the renewal of the license within the specific. The authority officially told CG of its license revocation via a letter on Poush 02, 2080. This is a big blow to the conglomerate that’s trying hard to break into the telecom industry.
NTA source said that the company’s license was automatically quashed after it couldn’t send an application with a renewal fee for the renewal of its license within the specified time.
CG Telecom obtained the license for rural telecommunication services back on Mangsir 05, 2060. The license’s fourth renewal was due for Mangsir 16. However, the company failed to apply for the renewal of its license. The sub-section 5 of section 25 holds a provision regarding the auto-revocation of the license. The news comes just a day after NTA revoked UTL’s license.
Also recommended: Hello Nepal License Revoked by NTA, Telco Owned by Sumargi
What’s in the Telecommunication Act, 2053 on automatic license revocation?
Sub-Section 2 of Section 25 in the prevailing Telecommunication Act, 2053 holds that the licensee willing to renew their license must submit an application to NTA before the expiry of the period prescribed in the agreement.
NTA has revoked the license of CG Telecom for Rural Telecom Service in accordance with the Sub-Section 5 of Section 25 of the Telecommunication Act, 2053
Sub-Section 5 states that if the license is not renewed within the timeframe pursuant to Sub-Section 2, the license gets “ipso facto invalid”. Although the license period lasts twenty-five years, the renewal is required after 10 years at a time.
Do read: Don’t Sell Smart Cell’s License- Public Account Committee to NTA
A wide dent to CG’s telecom service ambition?
CG has been very flamboyant in its ambition to enter the telecommunication service in Nepal. But despite multiple attempts and lobbying, it has only failed to obtain the nod. As a result, the company started CG Net subsidiary to provide fiber internet service. Find out the latest CG Net fiber internet packages [2024].
Originally, CG wished to architect a Jio-like 4G revolution in Nepal after getting a Unified License. Chaudhary Group Chairman has said that CG would offer voice and broadband services at affordable rates in Nepal if it gets approval. It has formally submitted a request for a mobile service license too but hasn’t got the unified license.
Nirvana Chaudhary, the Managing Director of CG Corp Global recently made remarks about the “figures” who have barred CG from obtaining a license for full mobile service in Nepal. But all aside, CG hasn’t got what it has desired long- a mobile service license that lets it operate commercial 4G broadband networks all over Nepal. CG was in a rumor to get Smart Cell’s frequencies following the latter’s license revocation but that also didn’t materialize. The loss of the rural telecom license may prove a dent in the company’s telecommunication ambition.
But many claim that it’s just a matter of time before the government gives in and grants CG the license. Some claim that the government will make amendments to the governing provision to allow CG to receive the unified license in legitimate terms. Currently, Nepal Telecom and Ncell provide telecommunication services in Nepal.
Do you think CG will have a future in Nepal’s telecommunication sector? Or is it only reasonable to let the prominent business house enter the market as it has telco businesses abroad? Do share your opinion in our comment section below.
