The Nepal Telecommunications Authority (NTA) has recently cancelled the license of Smart Telecom after the company failed to pay its renewal fees and government dues. As per the Asset Management Regulations for Telecommunication Service Providers, 2079, the NTA has also initiated the process of managing the company's assets.
The decision to take control of Smart Telecom's assets was made during the board meeting of the NTA on Monday. The Asset Management Regulations for Telecommunication Service Providers, 2079, outline the management of assets of telecommunications service providers whose licenses have not been renewed.
According to the regulations, the authority is directed to transfer the management of the assets of the company to another entity if it is found to be in a state of pre-existing telecommunications infrastructure, structure, telecommunications system, and network. Smart Telecom was also issued a directive to this effect.
Smart Telecom's license for basic telephone service was issued on 2 Baisakh, 2070, and expired on the same date in 2080. The company was required to pay approximately 28 billion Nepali rupees for renewal, but it failed to make the payment, resulting in the automatic cancellation of its license.
In accordance with the property management regulations, the NTA has decided to manage the company's assets. The NTA has also directed the company to operate the telecommunication service for up to 15 days, as per the same regulations.
Rule 37 of the regulations states that the authority must provide information to the formed management group about the process of moving forward with necessary work. Accordingly, the authority has confirmed the company's assets and liabilities and will sell them through auction.
In conclusion, the NTA's decision to cancel Smart Telecom's license and take control of the company's assets is in accordance with the Asset Management Regulations for Telecommunication Service Providers, 2079. The authority will continue to manage the company's assets and sell them through auction as per the regulations.