Kathmandu-Ncell has urged the government to remove the share ownership condition attached to the renewal of its telecommunications licence and to review decisions made by the Cabinet and regulatory authorities, arguing that the provisions are inconsistent with Nepal’s telecommunications and foreign investment laws as well as the country’s international investment commitments.

According to the company, while Nepal Telecom’s licence renewal did not require the payment of interest, Ncell has been asked to pay interest on its renewal fee. It also objected to a condition preventing any change in its shareholding structure during the licence renewal process, describing the requirement as discriminatory and contrary to the law.

Ncell said the Telecommunications Act, 1997 (2053 BS) does not envisage any requirement to maintain a fixed shareholding structure as a condition for renewing a telecommunications licence. The company argued that such a provision infringes shareholders’ property rights and sends a negative signal to foreign investors.

The company further claimed that the current conditions conflict with the Foreign Investment Policy, 2014 (2071 BS), the Foreign Investment and Technology Transfer Act, 2019 (2075 BS), and the Nepal–United Kingdom Bilateral Investment Promotion and Protection Agreement (BIPPA). It warned that continued regulatory uncertainty could weaken Nepal’s investment climate and discourage foreign investment.

Ncell also maintained that while the Telecommunications Act provides for telecommunications-related physical assets to be transferred to the government after the expiry of a licence, there is no legal provision requiring the company’s shares to be automatically transferred to government ownership.

The company has proposed three possible solutions to the government: amending the regulatory framework, facilitating Ncell’s conversion into a Nepali company, or increasing Nepali ownership through a public share offering if necessary.

Ncell warned that unless the regulatory decisions are reviewed, the country could face adverse consequences for telecommunications services, digital infrastructure, the investment environment, and the confidence of international investors.