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Posted
on 09-Mar-04 07:36 PM
HMG's decision to open up telecom sector was much awaited one and is welcome...
Govt decides to open telecom sector
KOL Report
KATHMANDU, March 10 - In a step to revolutionize the country’s telecom sector, the Government has decided to completely open the telecommunications services and to convert Nepal Telecommunications Corporation (NTC) into a company.
A decision to this effect was taken in the cabinet meeting on Monday, a high-level government official informed Kantipur Online.
With the latest decision to completely open the country’s telecom sector, the Government has given an end to long-running licensing regime. And, now the permission will be given to operate telecom services as far as radio spectrum to private sector on the basis of right of way allow.
The source, however, said that the decision would come into effect only after the announcement is publicized through gazette.
Similarly, the Government has also decided to convert the NTC into a company in a move towards privatizing the corporation. As per the scheme, the corporation, at first, will be converted into a company and then broken into subsidiaries, with the gradual divestment of the Government.
Commenting on the decision, Sushil Ghimire, Joint Secretary at the Ministry of Information and Communications (MoIC), said that the latest decision is aimed at enhancing the service quality of the NTC.
“Once the NTC is converted into a company, the telecommunications service will be comparatively more accessible and also affordable to general people,” said Ghimire.
The government aims to privatize the corporation by the end of next year. “Soon its asset valuation would be worked out and shares will be issued to general public,” he added.
With the latest decision of opening up the telecom sector, the NTC’s monopoly in mobile-phone services will come to an end, eventually allowing private companies to switch into service offer.
So far, only one private company, United Telecom Limited (UTL), has been allowed to enter the basic telephone. The latest decision to liberalize telecom services is expected to expedite the growth and improve the quality of services and lower the charges.
Expansion of the services has been painfully slow due to the protectionism that was largely reluctant to give away the monopoly of the NTC in the country’s telecom sector.
Even the UTL, which is the only one private company in Nepal’s telecom sector, was allowed only last year to enter in the Nepali market. The UTL is a joint venture of the Telecommunications Consultants India Limited (TCIL), Mahanagar Telecommunications Nigam Limited (MTNL), Videsh Sanchar Nigam Limited (VSNL) and Nepal Venture Private Limited (NVPL), a Nepali partner. (snn)
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