mainlogo2.jpg (11011 bytes)

ECONOMY  

logo1.jpg (7522 bytes)

tkphead2.jpg (5702 bytes)
 Kathmandu Wednesday October 04, 2000 Aswin 18,  2057.


Basic telephone service opened to private sector

Post Report

KATHMANDU, Oct 3 - Nepal Telecommunications Authority (NTA) invited the private sector for providing rural telocom services (RTS) in the Eastern Development Region.

NTA has opened the basic telephone service to the private operator in pursuant with the government's policy of involving the private sector in telecommunications in rural areas. The government provides one-time subsidy to the operator, but the one quoting for least subsidy would be preferred while awarding the licence.

According to Bhoop Raj Pandey, Chairman of NTA, the would-be operator has to use field-proven latest technology but they can operate the services either through radio or satellite communication.

The Authority has opened the service to private party to operate RTS in 538 VDCs of the Eastern Development Region.

Licence to operate the service is given to those areas only where Nepal Telecommunications Corporation (NTC) has not reached. But NTC also is not allowed to tresspass upon the VDCs private to the private sector for five years. However, other private operators can run similar services in those areas.

A licence fee of Rs 100 thousand has been fixed for a period of 10 years subjected to be renewed every five years paying a renewal fee not exceeding four percent of the operator's income. The licence is valid for 25 years altogether.

"Compared to the licence fees of other telecom service operators, the fee asked for RTS is very nominal as we are charging only Rs 100 thousand for a period of ten years. They do not have to pay Rural Telecom Development Fund tax either," says Pandey.

The fee is nominal. Fine. But the government should provide more incentives in order to lure more operators to the far-flung areas of the country where almost all populace is deprived of basic telephone service while the world has moved far ahead in information technology (IT). For this government should waive royalty and give them other facilities, Pandey stressed.

This apart, the operator has to pay a royalty four percent of its total annual income to the government. It is also mandatory for the operators  to provide at least two telephone lines to a village development committee (VDC) for public call office (PCO). The qualified bidder has to operate their service within two years of acquiring licence for the same.

NTA has a policy of gradually opening up RTS to other developmental regions as well. "Following the completion of the first project, we will give licence to private operators to provide RTS in basic telephone," says Chairman Pandey.

The government has invited private sector to invest in the fast growing technology at a time when the law and order situation in the country is worsening. Investors want political stability and conducive environment to their investments so that they could get the return at the estimated time.


Other Stories


|Headline| |Editorial| |Local| |Letter| |Sports| |Past|

Send your comments and letters to the editor at kanti@kpost.mos.com.np
2000 © Mercantile Communications Pvt. Ltd. P.O. Box 876, Durbar Marg, Kathmandu, NEPAL. Tel : 977 1 220 773, 243566, Fax: 977 1 225 407. Reproduction in any form is prohibited without prior permission. No part of the articles which appear in the internet version on The Kathmandu Post may be reproduced without the permission of Mercantile Communications Pvt. Ltd. For reprinting rights, please write to US. Send us your feedback: CONTACT US  ABOUT US  HOME ADVERTISE WITH US

BACK TO THE TOP