Telecom Law in Nepal (2081 Updated)

The Telecommunications Act and Telecommunications Rules are the two primary telecom laws in Nepal that regulate telecommunication services’ management, operation, and licensing.

1. Operation of Telecommunication Service in Nepal

1.1 Obtaining Telecommunication License

Individuals desiring to operate Telecommunications Services in Nepal are required to apply. After applying, the Telecom Authority examines the application along with the documents. If the Individual is deemed competent, the Authority must allocate the License Fees, Renewal Fees, and Royalties accordingly. If any Fees have yet to be previously determined, then the Authority shall determine those Fees and make it Industry Standard according to the Highest Bid.

1.2 License Fee

The License Fee to be charged for the license depends on the Highest Bidding amongst Multiple Competitors or set by the Government in the case of a Single Competent Applicant.

1.3 Renewal, Amendment, and Transfer of License

The Period of License must be codified in the License Certification itself. Suppose the licensee intends to renew the license obtained by him. In that case, he shall have to apply to the Authority, accompanied by the renewal fee he has undertaken for the license. 

1.4 Period of Renewal of License

If any licensee fails to renew their license within the required time limit, such license shall not be renewed in Nepal.

1.5 Amendment to License

An application must be submitted to the Telecom Authority to bring necessary amendments to the Telecom License by setting out the reasons for such amendment.

1.6 Sale of Transfer of License

Any person who desires to give or receive the license by conveying the title by way of sale or otherwise shall have to make a joint application for approval, setting out the mutually settled terms and restrictions, too. The Telecom Authority makes necessary examinations and may demand additional description or information from the Persons that made such application.

2. Terms of Telecom Law in Nepal

After an Individual has obtained the license for Telecommunication Operation in  Nepal, they must abide by the following terms and regulations:

  1. To provide the telecommunications service to the customers by using machines and equipment on telecommunications of the quality standard fixed by the Authority.
  2. To operate telecommunications service in accordance with the minimum standard prescribed by the Authority from time to time.
  3. Not to use the telecommunications machine and equipment installed by another licensee without the consent of such licensee.
  4. Not to distribute telecommunications lines through electric poles as far as possible, and even if the lines are to be so distributed, to distribute them by obtaining approval of the concerned body and only in a manner that is safe from the electricity.
  5. Not to distribute telecommunications lines through public, governmental, or personal land, buildings, houses, etc., without the consent of the concerned person, body, or organization.
  6. To provide the telecommunications service in conformity with the agreement made with the customer while distributing the telecommunications service to the customer.
  7. To operate the telecommunications service by using only the frequency prescribed in the license for the telecommunications service in which frequency is used.
  8. If the telecommunications service provided to the customer becomes disordered for any reason, repair and maintain it free of cost in conformity with the standards prescribed by the Authority.
  9. To publish materials on telecommunications, including telephone directories, for the convenience and information of the customers.
  10. To operate the telecommunications service in conformity with the minimum standards prescribed by the International Telecommunications Union (ITU) regarding the operation of the telecommunications service.

3. Inspection of Telecommunication Service in Nepal

Government Authorities in Nepal can conduct required inspections or inquiries against the licensee for the Telecommunications Services they provide. The Following can be investigated:

  1. Whether the licensee has operated the telecommunications service by using the machine and equipment relating to telecommunications in harmony with quality standards determined by the Authority or not,
  2. Whether the telecommunications service has been operated in conformity with the minimum standards prescribed by the Authority or not,
  3. Whether the licensee has collected the service charge as approved by the Authority or not,
  4. Whether the licensee has carried out the acts and actions in conformity with the terms required to be observed under the Act or this Regulation.

4. Telecommunication Dispute and Dispute Settlement

A Complaint can be filed to the Ministry of Information and Communication for a dispute between the Licensee and the customer. Further, a Court Complaint can also be filed by any of the aggrieved parties. If a Complaint is filed per Telecom Law in Nepal, the Authority can require the concerned licensee to settle the dispute through Mediation. However, if the dispute can’t be settled through mutual discussions, the Authority can form an Arbitration Group that drafts its rules of procedure to settle disputes. The Decision must be made within 15 Days of the formation. It is binding upon the concerned licensees.

5. Application to Submit for Telecom License

The application to obtain a Telecom License in Nepal is as follows:

(1) Person desiring to obtain a license:-

(a) Name:-

(b) Address:-

Permanent:-

Temporary:-

(2) Type of telecommunications Service:-

(3) Required to operate telecommunications service:-

(a) Estimated Capital:-

(b) Proposed Investment:-

(c) Source of Investment:-

(4) Concerning telecommunications service:-

(a) Date of Commencement of work:-

(b) Date of completion of work:-

(c) Projection of demand and supply of service:-

(d) Network Expansion:-

(e) Description of technology to be used in the network:-

(f) Standard service to be provided:-

(5) Of telecommunications service:-

(a) Manufacturer:-

(b) Country where import is made:-

(c) Quality standards:-

(6) Frequency intended to be used:-

(7) Date on which the telecommunications service can be provided to the customer:-

(8) Region where the telecommunications service is to be operated:-

(a) District :- (b) Municipality/V.D.C. :- (c) Ward No :-

(9) Details of annual profit/loss, etc., to be earned or incurred while operating the telecommunications service:-

(a) Approximate operation expense:-

(b) Approximate income:-

(c) Account of profit and loss:-

(d) Tariff rate:-

(10) Documents to be submitted along with the application:-

(a) Copy of the Citizenship Certificate, in case an individual wishes to obtain the license.

(b) Name of body corporate and documents showing its legal status if a body corporate wishes to obtain the license.

(c) Documents relating to technical competency and professional efficiency.

(d) Work operation plan and financial and technical study report.

(e) Matters stipulated by Nepal Gazette

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