Smart Telecom Private limited has recently filed a petition with the Ministry of Communications and Information Technology seeking a further extension on the Rs 6 billion in arrears it has to pay to the government. The private mobile network service provider, which has been unable to establish itself in the Nepali market, is asking for a further one-year extension. Smart Telecom has also submitted the same request to the Nepal Telecommunication Authority.
This is not the first time the company has failed to clear its arrears and got the payment deadline extended through lobbying. The NTA had decided to cancel Smart Telecom’s license two years ago for repeatedly failing to pay up. Despite the NTA’s decision, the Council of Ministers had stepped in to protect the company and decided to extend the payment deadline while also giving Smart Telecom the option of clearing its dues in installments.
In a September 2020 Cabinet decision, the deadline was extended by six more months. Back then, the NEA was given a three-point directive by the Ministry of Communications, which stated that if the company failed to pay its arrears in the next six months, the NTA could revoke its license and also confiscate its properties and assets.
“In case of non-payment of dues within the stipulated period, the authority will take necessary legal action to revoke the license and make appropriate arrangements for the continuity of service for the company’s customers,” the letter sent by the ministry to the NTA read. However, come February 2021, the Council of Ministers again extended the deadline till the end of the current fiscal year, i.e mid-July.
It has been learnt that despite repeated extensions and installment facility, Smart Telecom has failed to pay its liabilities to the government, accrued under various headings such as frequency fee and license renewal. According to the NTA payment plans, the company had to pay a frequency fee of Rs 598.86 million in the first installment, Rs 832.3 million in the second, Rs 774 million in the third, Rs 715.6 million in the fourth, and Rs 657.2 million in the fifth. Besides the set installments, Smart Telecom also has to pay another Rs 1.25 billion in license renewal fees.
