Ncell Claims Government-Imposed License Renewal Terms Are Unfair and Illegal

Private telecom company Ncell has filed a petition with the Prime Minister’s Office seeking a review of the terms set by the government during the renewal of its license, describing them as unfair. The company argues that the provisions requiring an annual 10 percent interest on the renewal fee and prohibiting changes in share structure are illegal and negatively impact the business environment. To resolve the dispute, Ncell has proposed a new business plan that would increase Nepali ownership to over 50 percent and issue shares to the public. Kathmandu, 8th Shrawan.

Ncell, a private telecommunications service provider, has submitted a formal request to the Prime Minister and Council of Ministers for reconsideration of certain conditions imposed by the government during its license renewal, labeling these conditions illegal and unjust. The company expressed concern that these terms would have serious adverse effects on its business, investment, and service operations. Although the Nepal Telecommunications Authority renewed Ncell’s mobile service license for five years on 16th Bhadra 2081 (September 2024), Ncell has raised objections specifically concerning two key conditions attached to the renewal.

The first contested term mandates an annual 10 percent interest on the balance of the renewal fee payment, which Ncell argues violates the law. The second condition prohibits any changes to the company’s shareholding structure during renewal, which Ncell also considers illegal. According to Ncell, both stipulations contradict the constitutional rights to property and business freedom. The company highlighted discriminatory treatment, as these conditions were not imposed on Nepal Telecom during its license renewal process but applied exclusively to Ncell.

Furthermore, Ncell stated that the 10th amendment to the Telecommunications Regulation, which it claims is being retrospectively applied, seems to impact only Ncell. Since the law does not prohibit share sales, imposing restrictions on altering shareholding structures is, according to the company, unlawful. Ncell emphasized its status as Nepal’s largest taxpayer, serving more than 14 million customers and providing employment to over 100,000 individuals directly and indirectly. The company has warned that failure to resolve this dispute could lead to a crisis in Nepal’s telecommunications sector.