Value-added Services in Nepal: Telecomunications law in Nepal

06 September 2020

This questionnaire briefly covers the procedures for the establishment and licensing of companies willing to provide Value-added Services in Nepal.

1. What are Value-added Services?

Value-added Services (VAS) are non-core services or features in telecommunications that are beyond the standard voice calls. VAS are additional services that help the consumers to have easy access to the core telecommunication sector services. Some examples of services that come under VAS are:

2. What are the laws that govern VAS in Nepal?

The General Guideline relating to operation of Value-added Services (“Guidelines”), Telecommunications Act 1997 (“Act”) and Telecommunications Regulation 1997 (“Regulations”) govern the licensing and operation of VAS oriented companies in Nepal. Nepal Telecommunications Authority (“NTA”) is the governing authority to provide VAS license in Nepal.

3. What types of VAS is allowed in Nepal?

As per the Guidelines, the following VAS can be operated by a company in Nepal:

4. What type of companies can apply for VAS license?

A  company established under the Companies Act of Nepal having the objective of providing telecommunication service is eligible to apply the license for VAS. If a foreigner wants to operate telecommunication services in Nepal, the company must be registered in a joint venture with Nepali investors with at least 20 percent Nepalese investment.

5. How can a company apply for a VAS license?

A company registered in Nepal having an objective of providing telecommunication services can apply for VAS license at the NTA with an application along with the required documents outlined in question no.6 below.

6. What are the required documents for a VAS license?

A company desiring to provide value-added services should submit a prescribed application to NTA. Application forms are available separately for each service.  The required documents for getting the VAS license are as follows:

  1. Citizenship certificate (if a person desires to obtain license);
  2. Company registration certificate (if a Company desires to obtain license); and
  3. A proposal containing the following information enclosed with the application form:

7. What are the applicable license fees?

The License fee for different category of VAS is mentioned in Nepal Telecommunication website link:https://nta.gov.np/en/license-fee/.

A telecommunications company holding a VAS license will have to pay 10 percent of total profit as royalty to the Government of Nepal each year. Futher, 2 percent of total profit must be paid for rural telecommunication development fund.

8. What is the validity period of the license?

The license is valid for a maximum period of 25 years and must be renewed in every 5 years by paying prescribed fees.

Disclaimer: This questionnaire is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication, solicitation or inducement of any sort from the firm or its members. The firm shall not be liable for consequences arising out of actions undertaken by any person relying on the information provided herein.

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