Chapters – 5 Provisions for Licence
21. Prohibition to Operate Telecommunications Service without Licence :
After the commencement of this Act, no one may operate the Telecommunications Service without obtaining a License.
22. Notice to be Published to Submit Application for Lice nce:
(1) The Authority shall, before issuing any Licence relating to any Telecommunications Service other than those prescribed pursuant to Sub-section (2) of Section 23, determine the number of Licence to be issued for such service and types of Telecommunications and publish a public notice specifying the time limit to submit application for the Licence.
(2) Within the period of five years from the date of issue of the Licence of any Telecommunications Service pursuant to Sub-section (1), no other License shall be issued to operate the same Telecommunications Service.
Provided that, this Sub-section shall not bar the Authority from issuing the Licence to other person in case the Licencee fails to provide the Telecommunications service as prescribed in the Licence or on the basis of
objective evaluation if it seems that the additional service for such Telecommunications Service is required.
23. Application to be Submitted for Licence:
(1) The person, who desires to operate the Telecommunications Service pursuant to this Act and has capital,
technical expertise and professional experience as prescribed, shall have to submit an application to the Authority, setting out the particulars as prescribed along with economic and technical study report as well as work plan in
connection with the Telecommunications Service to be operated, within the time prescribed by the Authority pursuant to Section 22.
(2) Notwithstanding anything contained in Sub-section (1), an application may be submitted at any time for the license to operate the telecommunications service as prescribed by Government of Nepal by a notification published in the Nepal Gazette on recommendation of the Authority….. 5
(3) The persons, who have been operating the Telecommunications Service since before the commencement of this Act, shall be required to submit an application to the Authority for the Licence setting out the particulars
relating to the service having been operated by them, within six months and shall have to receive the Licence within one year form the date of commencement of this Act.
24. Provision of Licence :
(1) Upon the receipt of the application pursuant to Section 23, the Authority shall conduct necessary inquiry in this regard, and in course of inquiry, if it deems necessary to ask for an additional information or particulars, the Authority may ask for the additional information or particulars from such applicant.
(2) After the inquiry by the Authority pursuant to Sub-section (1), if it deems appropriate to issue the Licence, the Authority shall issue the Licence to the applicant upon receiving the fee as prescribed, other than the Licence to be
issued pursuant to Sub-section (3) and (4).
(3) While making an inquiry pursuant to Sub-section (1), if only one person from among the applicants who submitted the application pursuant to Sub-section (1) of Section 23 is found to be qualified to operate such
Telecommunications Service, the Authority may fix Licence fee, renewal fee as well as royalty by negotiation with such person and shall issue the Licence to him.
(4) While making an inquiry pursuant to Sub-section (1), if more than one persons are found to be qualified to operate such Telecommunications Service from among the applicants, the Authority may notify all of these
persons for bidding in connection with the Licence fee, renewal fee as well as royalty and shall issue the Licence to the person who quotes maximum amount in the bidding.
(5) While issuing a Licence pursuant to Sub-section (2), the Authority shall issue the Licence within ninety days of the receipt of the application or of the receipt of them additional information or particulars if such information or
particulars are required pursuant to Sub-section (1).
(6) While issuing a Licence pursuant to Sub-section (3) or (4), the Authority shall issue the Licence within one hundred and twenty days from the last day prescribed fold the submission of the application pursuant to Sub-
section (1) of Section 23 or from the date of the receipt of the additional information or particulars, if such information or particulars are required pursuant to Sub-section (1).
(7) A person, who could not obtain the Licence within the time stipulated in Sub-section (5) or (6), may file a complaint to Government of Nepal within thirty days of the expiry of such time limit and the decision of Government of Nepal in such complaint shall be final.
24 A. 6 License not required: Notwithstanding any thing contained elsewhere in this Act, no license shall be required to operate the telecommunications service as follows:
(a) To establish a network by Government of Nepal for its own purpose and operate the telecommunications service,
(b) To install a network in consonance with international covenants in an aircraft registered outside the Nepal, and operate the telecommunications service,
(c) To establish a network by a diplomatic mission for its own purpose and operate the telecommunications service,
(d) To operate the telecommunications service within own house compound without getting it associated with the
telecommunications system,
(e) To operate other telecommunications services as prescribed. 25. Period of Licence and Renewal : (1) The period of Licence shall be of twenty-five years at the maximum.
Privoded that, the Licence shall not be issued for a period of more than ten years at a time.
(2) A Licencee desiring to have his/her Licence renewed shall be required to submit an application to the Authority for the renewal of the Licence before the expiry of the period of the Licence within the prescribed
period. If an application is so made, the Licence shall be renewed for a period of not more than five years at a time.
(3) The Licencee pursuant to Sub-sections (3) and (4) of Section 24 shall deposit the renewal fee as agreed by him/her to the Authority for the purpose of the renewal of the Licence pursuant to Sub-section (2).
(4) The Licencee pursuant to Sub-section (2) of Section 24 shall deposit the renewal fee as prescribed to the Authority for the purpose of the renewal of the Licence pursuant to Sub-section (2).
(5) In case the Licence is not renewed within the time limit pursuant to Sub-section (2), such Licence shall ipso facto be invalid.
26. Amendment to the Licence :
(1) In case a Licencee deems it necessary to make any amendment to any matter set forth in the Licence obtained by
him/her, such Licencee shall submit an application to the Authority stating the reasons thereof.
(2) If the reasons for the amendment to the Licence mentioned in the application submitted pursuant to Sub-section (1) are found reasonable and appropriate, the Authority shall amend the Licence within thirty days of the
receipt of such application, if it does not affect the substantial matters mentioned in the Licence, if it does not seem necessary to amend the Licence, a notification to that effect with reasons shall be given to the applicant.
(3) A fee as prescribed shall be required to deposit in the Authority for the amendment to the Licence pursuant to Sub-section (1).
(4) In case the Authority deems it necessary to make any amendment mentioned in any Licence the Authority may give notice to that effect to the concerned Licencee stating the reasons thereof.
(5) On the receipt of the notice pursuant to Sub-section (4), if the Licencee deems no such amendment is required to his Licence, such Licencee may submit an application to that effect to the Authority stating the reasons
thereof within fifteen days of the receipt of such notice.
(6) Upon the receipt of an application pursuant to Sub-section (5) or upon the expiry of that time limits, the Authority shall decide whether to make or not to make amendment to the Licence and notify the Licencee thereof.
27. Sale or Transfer of Licence :
(1) In case a Licencee desires to sell or transfer his Licence to any other person, the Licencee and the buyer or the transferee of the Licence shall have to submit a joint application to the Authority stating the reasons thereof along with the terms and conditions mutually agreed, for the approval.
(2) Upon the receipt of an application submitted pursuant to Sub- section (1), while making an inquiry by the Authority, if it deems appropriate to sell or transfer the Licence to the person mentioned in the application, the
Authority shall grant approval for such sell or transfer within thirty days of the receipt of the application, and if it deems inappropriate to permit to sell or transfer, a notification with reason shall be given to the applicant.
(3) A fee as prescribed shall be required to be paid to the Authority for the approval to sell or transfer the Licence.
28. Licence May be Cancelled : (1) In case the Licencee fails to operate the Telecommunications Service within the time limit as specified in the Licence, the Authority may cancel such Licence.
(2) If the Licencee acts in contravention of this Act or the Rules made thereunder and the terms and conditions set forth in tine Licence, the Authority may issue an order to the concerned Licencee to improve on such acts
specifying the time thereof.
(3) If the Licencee fails to improve the acts within the period specified pursuant to Sub-section (2), the Authority may cancel the Licence of such person.
(4) Notwithstanding anything contained in Sub-section (1) or (3), the Licencee shall be provided a reasonable opportunity to submit his clarification.
(5) A Licencee not satisfied with the cancellation of the Licence by the Authority pursuant to Sub-section (3), may file a complaint to Government of Nepal within thirty-five days and the decision of Government of Nepal in such
compliant shall be final.
29. Terms and Conditions to be Complied With by the Licencee : The terms and conditions other than those mentioned in this Act to be complied with by the Licencee shall be as prescribed.
30. To Develop, Expand and Operate the Telecommunications Service in the Directed Area : (1) The Licencee pursuant to Sub-sections (3) and (4) of Section 24 shall invest the prescribed percent of his/her total
investment for the development, extension and operation of the Telecommunications Service in the rural area.
(2) The rural area, in which the Licencee is required to extend the Telecommunications Service pursuant to Sub-section (1), shall be as mentioned in the Licence and in case it is not mentioned in the Licence, it shall be as
specified by the Authority from time to time.
(3) If any Licencee, on the basis of mutual agreement, wishes to develop, extend and operate the Telecommunications Service to be developed, extended and operated by other Licencee pursuant to Sub-section (1) and (2), the Authority may after making necessary inquiry, grant its approval.
(4) The Authority shall create a fund for the development, extension and operation of the Telecommunications Service in the rural area and the Licencee shall deposit such amount, every year, out of the annual income received by him/her as specified by the Authority.
(5) The Authority shall use the amount deposited in the fund pursuant to Sub-section (4) for the development, extension and operation of the Telecommunications Service in the rural area subject to the policy of
Government of Nepal relating to the Telecommunications.
(6) The Authority may designate any Licencee for developing extending or operating the Telecommunications Service pursuant to Sub-section (5) and such Licencee shall develop extend and operate the Telecommunications
Service in the rural are as specified by the Authority.
31. Interconnection and Use of Telecommunications System Allowed : (1) The Licencee shall be allowed to mutually connect the Telecommunications System developed by him/her with the Telecommunications System developed
by other Licencee and use it.
(2) If a Licencee requests, to connect and use the Telecommunications System developed by another Licencee the Licencee shall be allowed to connect
and use on the terms and conditions mutually agreed upon or on the terms and conditions determined by the Authority, if such agreement could not be reached.
32. Royalty to be Paid : (1) The Licencee pursuant to Sub-section (2) of Section 24 shall be required to pay royalty to Government of Nepal as prescribed.
(2) The Licencee pursuant to Sub-sections (3) and (4) of Section 24 shall be required to pay royalty to Government of Nepal as promised by him.
(3) The method of payment of royalty and the time shall be as specified by the Authority.
33. To be Owned by Government of Nepal : (1) The land, building, plant, equipment and other structures related to the Telecommunications service developed with more than fifty percent of its investment by a foreign person or
corporate body shall be under the ownership of Government of Nepal after the expiry of the period of the Licence.
(2) The assets so owned by Government of Nepal pursuant to sub- section (1) may be purchased by the previous Licencee upon payment to
Government of Nepal at a price fixed pursuant to Sub-section (3) and after obtaining the Licence once again, the Telecommunications Service may be operated.
(3) For the purpose of fixation of price mentioned in Sub-section (2), Government of Nepal may, in consultation with the Authority, constitute a committee consisting five members at the maximum.
(4) In case of the Telecommunications Service operated with the investment of foreign person or corporate body up to fifty percent, the previous Licencee may, after the expiry of the period of the Licence, operate the Telecommunications Service by obtaining the Licence once again.