NTA Scraps License of Nepal Satellite Telecom

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NTA Scraps License of Nepal Satellite Telecom

August 20: Nepal Telecommunications Authority (NTA) has scrapped the license of Nepal Satellite Telecom for not paying its dues. The telecom governing body said that it decided to scrap the license after the company failed to clear its dues within the deadline given by the NTA.

Nepal Satellite Telecom is owned by businessman Ajeya Raj Sumargi.

The Telecommunications Act 2053 has a provision of automatically terminating the license of companies which do not pay their dues on time. Nepal Satellite Telecom was liable to pay Rs 800 million to the NTA as frequency charge since the last four years.

NTA has given ten days time to all the companies to which had not cleared their dues within the end of the last fiscal year to make the payments before the deadline expires.

On July 22, NTA had sought clarification from Nepal Satellite Telecom why the governing body should not scrap its license. Even after repeated requests, the company did not show any interest to clear its dues. NTA then issued a public notice declaring to scrap the license of Nepal Satellite Telecom. The company then challenged the decision at the Supreme Court. After the apex court did not issue an interim order in favour of the company, it agreed to pay Rs 70 million within a week and the remaining amount in installments within a year. But the NTA on August 3 asked the company to pay Rs 70 million within a week and the remaining amount in three months.

NTA Chairman Puroshattam Khanal informed that the company’s license was automatically scrapped after it failed to clear the dues within the deadline set by the authority.

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