Court Upheld Smart Cell License Revocation
The Patan High Court has
upheld the decision of Nepal Telecommunication Authority (NTA) to cancel the license of Smart Telecom. A joint bench of Justices Dhruba Chandra Nanda and Dipendra Bahadur Bam ruled in favor of the Nepal Telecommunications Authority (NTA) on 21 April.
Earlier Smart Cell, a private telecom operator, had its unified license
revoked after failing to clear its dues. Despite being given a deadline till 16 April to pay its renewal charges and fines to Nepal Telecommunication Authority (NTA), the company failed to comply. The telco in response had gone to court in a last-ditch effort to keep its license. NTA has given Smart Cell 15 days to prepare for handing over its assets, after which the regulator will start asset management. Smart has a liability of a total of Rs 28 billion to pay to NTA in license renewal, frequency charges, royalties, fines, etc.
With this court decision, NTA has initiated the process of managing the assets of Smart Telecom.
2.6 Billion of People Still Unconnected to the Internet
According to Euroconsult’s latest data, the use of the internet has doubled over the past eight years, with an estimated 67% of the world’s population now connected. However, approximately 2.6 billion people are still without internet access, and this number is not expected to decrease significantly by the early 2030s. The report states that the least-developed and landlocked developing countries are particularly lagging, with only one-third of their populations connected. Asia Pacific and Sub-Saharan Africa are home to 85% of the unconnected people, and India alone accounts for a quarter of this number.
While governments and organizations are encouraging infrastructure development plans to increase broadband accessibility, the issue of affordability and digital skills remain a significant challenge. This has created an “adoption gap,” where even if internet coverage exists, people are not using internet services due to affordability and a lack of digital skills. The report highlights the need for government and commercial initiatives to refocus their efforts beyond expanding coverage to closing the digital divide.
OAG Audit Report Highlights Achievements and Challenges in Nepal’s Telecommunications Sector
The Office of the Attorney General (OAG) recently released its audit report, which revealed that mobile broadband expansion has surpassed targets, while fiber extension is still lagging behind. The report covers various telecommunication projects in Nepal, including MDMS, 5G trial, TERAMOCS monitoring project, broadband connectivity, and data centers.
According to the report, the target for mobile broadband in 2078/79 was 72%, but Nepal exceeded this and reached 98.55% by the end of the same fiscal year. However, the optical fiber network is still not widely available across the country, with only 12,224 km of the area covered, far below the target of 19,170 km due to the difficulty of laying fiber cables in challenging terrain.
On a positive note, 4G/LTE services have reached 58.58% of subscribers in Nepal, exceeding the target of 50% for 2078/79, and telephone tele density has reached 142.87%. Nevertheless, the report indicates that the government’s target of covering 200 cities and developing areas with fiber connections could not be achieved, with only 85 of those areas connected by the fiber connection.
The OAG report concludes that the Digital Nepal Framework lacks the appropriate coordination for its implementation, with related bodies lacking accountability and ownership. The report recommends that all related bodies must coordinate and work together to achieve the desired results in all sectors.
Furthermore, the report notes that NTC has initiated an internal 5G trial, but the operator has not submitted its trial report to the regulator. The OAG suggests that a roadmap or a regulatory structure must be coordinated for a smooth transition to next-generation mobile technology.
The report also reveals that the government has spent millions of rupees on the enterprise email service, which has become unusable. According to the report, the government has spent over Rs 9,000 on a single email service, and the enterprise email service, which cost Rs 9,904. The OAG recommends that the government coordinate better pricing and purchasing strategies for IT services.
Google and Ibisco Inc. Register for Nepal’s Electronic Service Tax
Google LLC and Ibisco Inc., two well-known international IT companies, have registered with Nepal’s tax system to comply with the electronic services tax implemented by the government in the current fiscal year. The Inland Revenue Department confirmed the registration of these companies a few days ago.
The electronic service tax was introduced by the government from the fiscal year 2079/80 BS, and is applicable to the transaction value of electronic services provided by non-resident entities to consumers in Nepal. As a result of this registration, these companies will now be subject to a 2 percent tax on electronic services transactions conducted in Nepal.
MoICS Launches Web-Based System for Automated Approval of Foreign Investment
The Department of Industry, under the Ministry of Industry, Commerce, and Supplies (MoICS), is implementing a new web-based ‘automatic route’ system to facilitate the approval of foreign investment. This system will enable companies and individuals living abroad to complete all necessary legal work for investing in Nepal online. The Department had already launched the online Industry Management Information System (IMIS) in July of last year, but the system still required in-person officer verification of investor-filled forms. Currently, investments ranging from Rs 20 million to Rs 100 million can be approved in eight low-risk sectors. Once the Cabinet decision is made and published in the Nepal Gazette, the website will be ‘live’ and operational.
Global Smartphone Market Declines by 12 Percent in Q1 2023
Canalys has published the preliminary report for the global smartphone market for Q1 of 2023 and the early signs are still not bleak for the industry. The latest market share shows the fifth consecutive quarter of decline, this time of 12% year-on-year. 2022 didn’t end on a good note with the report highlighting a fall in global smartphone sales. The start of 2023 couldn’t prove to be brighter as well with most vendors struggling to sell high. Samsung currently has the largest market share of 22% which seems to be tailgated by Apple with a 21% market share. The increased demand for the iPhone 14 Pro series has been attributed to Apple’s success in Q1 2023. However, Apple managed to churn these numbers despite running into iPhone 14 production issues last year due to COVID-19 restrictions.
APF failed to recover its Official Facebook Page
Despite efforts by the Armed Police Force (APF), their Facebook page that was hacked and renamed to ‘Đỗ Thị Vân Anh Chủ Tịch tập đoàn DOVA GROUP’ with a post in Vietnamese is still not recovered. The hacked page’s management details indicate an individual in Colombia and Vietnam, and it has been placed under the category of beauty. However, the contact details for the page still belong to the Armed Police Force.
NTC to Provide eSIMs to Nepal Electricity Authority for Smart Meters
Nepal Telecom (NTC) has signed an agreement with Nepal Electricity Authority (NEA) to provide 150,000 eSIMs for use in smart meters. The agreement was signed by NTC’s Chief Commercial Officer Sangita Pahadi and NEA’s Director of Distribution and Customer Service Directorate Achyut Babu Ghimire on 20 April 2023. NTC has earlier provided 53,000 SIMs to NEA for use in smart meters, making it the largest use case for the telco’s SIM cards in the IoT service.
