Kathmandu— The Nepalese government has launched efforts to resolve longstanding disputes over arrears owed by internet service providers (ISPs) for telecom fees, license renewals, and the Rural Telecommunications Development Fund. The Ministry of Information and Communications is engaging in discussions with ISPAN to address issues related to outstanding payments and tax assessments.

Government’s Stance on Arrears

Information and Communications Minister Dr. Bikram Timilsina emphasized that ISPs must comply with legal requirements for taxes and fees, stating that the government will review any unjust impositions but expects compliance otherwise. He urged ISPAN to present clear written suggestions regarding issues faced by service providers and expectations from the government.

ISPAN’s Financial Challenges

ISPAN highlighted the financial strain on ISPs, noting that they are unable to pay off arrears accumulated over five years in a single payment. The organization requested installment arrangements for outstanding payments, particularly for solicitation fees and the Rural Telecommunications Development Fund. ISPAN also stressed the need for reassessment of taxes determined by the big taxpayer office.

Regulatory Implications

The Nepal Telecommunications Authority (NTA) has halted license renewals until outstanding payments are settled, impacting service expansion and business activities. Minister Timilsina suggested that a merger or acquisition process could streamline regulation and improve the telecommunications sector.

ISPAN continues to negotiate with the government for installment payment plans and reassessment of taxes, while the Ministry aims to resolve long-standing issues in the telecom sector.

Originally published on abcnews.com.np.