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Tussle between regulator and operator

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Nepal´s telecom regulator Nepal Telecommunication Authority (NTA) and the country´s largest and state-owned service provider Nepal Telecom(NT) are now in bitter wrangles over the former´s ruling that NT return a portion of frequency that it is holding and award it to a new operator Smart Telecom.



NT has angrily reacted over the ruling, citing that return of the frequency will result in degradation of its service quality. NTA, however, rules out such possibility and reiterated that it is firm in its decision. The ongoing tug of war between telecom regulator and operator has heated the market. [break]



Such being the backdrop, myrepublica.com talked with chiefs of the both the institutions.



Excerpts:



Amarnath Singh, MD, Nepal Telecom



Of the 900 mhz that we have been holding, 7.2 mhz is permanent while remaining 4.8 is temporary. It is surprising that we have been asked to return some frequencies at a time when all the 253 sectors of NT´s system are fully utilizing them. If we return the frequency, I think at least 100 Base Tower Stations (BTS) will be severely affected and it will ultimately result in severe disruptions in mobile communications. Not only this, the return of the temporary frequency will also affect our future expansion plan.



I have made it clear many times that NT is not at all in a position to return the frequency. It is surprising that we have been told to return 2.4 mhz frequency to award it to new operator Smart Telecom without having proper consultations with us. As far as I know, frequency should have been allocated to Smart Telecom at the time of awarding operating license to it.



We have repeatedly urged the NTA to understand the difficulties that we will face if the frequency is returned.



GSM has occupied roughly two third-lines of our connection and the network has been expanded in all 75 districts. Not only GSM, our coverage is on CDMA and lately PSTN has expanded to all over the country, making NT the largest telecommunication service provider.



NT is a government company and regardless of profit or loss, we have been offering our services even in remote areas. In addition, we also have a vigorous expansion plan. That is why we are pleading the NTA that we need the frequency that we are currently using. I am hopeful that NTA will review its decision and from my side, as the MD of NT, I will also talk to NTA and concerned authority to sort out the issue as soon as possible.





Bhesh Raj Kandel, President, Nepal Telecommunication Authority



Frequency debate is unnecessarily inducing tussles between NT and NTA. As per the request of NT, we had given the frequencies to NT on temporary basis for six months. As per the arrangement, 10.8 mhz frequency was provided to NT for a period of six months. Since the provision period to use the frequency has already expired, we decided to utilize it by giving that frequency to new operator Smart Telecom.



NT should have thought beforehand what it would do after the expiry of the period. It is against the existing legal provision to utilize that frequency in unauthorized manner. NTA has already computed the required number of frequencies as per the number of subscribers. By whose authority is NT using that frequency? If NT continues to use the same frequency, it will disturb the Smart Telecom´s service quality. We will be compelled to take necessary action against NT, if it continues to flout our instructions.



NT has been repeatedly ignoring the directions of the regulator authority. They are not even doing the needful to covert its temporary frequencies into permanent ones. It has not also give us full details about the utilization of frequencies used by it. Two years ago, we had asked NT about the number of its transmitting stations. But NT has yet to respond to it.



From the simple technical analysis, the frequencies that NT is using is far beyond the the frequency that it actually needs. It hasn´t also paid the required charge for using the frequency. When other telecom operators like Spice Nepal, United Nepal Telecom are compiling with our directives, why is NT flouting it?



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