Himal Press 
KATHMANDU: Stakeholders have urged the government to place special emphasis on the telecommunications sector, stating that the sector is approaching a crisis.
Speaking at a talk program on “Revitalizing the Telecom Industry” organized in Kathmandu on Wednesday, they said a positive intervention by the state has become essential for the telecom industry.
Presenting his paper, telecommunications expert Manohar Kumar Bhattarai said the telecom sector’s contribution to GDP has declined from 3.6% to 1.8% in recent years. “Although 4G coverage has reached 90% of the population across the country, only two out of 10 users regularly use data,” he said, adding that Nepal’s mobile internet usage is significantly weaker compared to neighboring countries.
Similarly, Ncell CEO Jabbor Kayumov warned that Nepal’s telecommunications sector is approaching a major crisis. He added that the sector is failing to attract foreign investment due to an unfavorable environment. “As the telecommunications business in Nepal is declining, the tax revenue to the government is also steadily decreasing,” he said, adding that the regulatory body, Nepal Telecommunications Authority (NTA), has focused more on revenue collection than on facilitating service providers. He expressed willingness to participate in spectrum auctions for 5G, provided that appropriate spectrum availability is ensured. He said Nepal’s telecom business model should transition to a subscription model without a further delay.
Also speaking on the occasion, NTA Chairperson Bhupendra Bhandari said 4G coverage would reach 100% within a year. He said the requirement for telecom companies to set aside 48% of their revenue to pay different taxes and fees to the state should end.
Minister for Communications and Information Technology, Prithvi Subba Gurung, said the government will help the telecommunications companies to overcome challenges seen in the sector. He also directed NTA to perform its regulatory function without bias.
Gurug also said that the government was trying to change the burden of the expensive renewal fee of Rs20 billion on telecom companies.
