The Nepal Telecommunications Authority (NTA) has cleared operator Ncell to launch 4G services over its existing 900-MHz and 1800-MHz spectrum holdings, paving the way for the operator to compete with Nepal Telecom.
The telecoms regulator has informed Ncell it is clear to launch 4G services using its spectrum holdings from June 1.
But the move goes against the decision of Nepalese parliament’s Public Accounts Committee (PAC) not to allow Ncell to launch 4G services until it pays a capital gains tax the government has been demanding from the operator.
According to the report, the committee had approached the regulator asking why Ncell had been permitted to roll out 4G services despite the tax dispute. The NTA responded that it had given the directive in the spirit of the technology neutrality spectrum policy.
Nepal’s Development Committee had also directed NTA to allow a launch on the grounds that consumers have been negatively affected by the decision to delay providing approval, undermining the committee’s authority.
In light of the PAC’s concerns, the regulator noted that while Nepal Telecom has been granted new spectrum to support its 4G foray, Ncell so far has not.
The tax dispute centers on Ncell’s former shareholder TeliaSonera’s decision to exit the Nepalese market. The Sweden-headquartered operator sold its indirect majority stake in Ncell to Malaysia’s Axiata Group for $1.36 billion during a deal announced in April last year.
The Nepalese government has demanded that capital gains tax be paid on the transaction, but because TeliaSonera had already exited the market and had disputed the assertion that the transaction is taxable, it has been leaning on Ncell to resolve the issue and potentially pay the tax on TeliaSonera’s behalf. But Ncell has resisted this pressure.