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Showing posts with label Ncell. Show all posts
Showing posts with label Ncell. Show all posts

Tuesday, May 7, 2019

Ncell Axiata Capital Gain tax issue

From one end to the other, the telecommunication giant Ncell is doing everything to escape its tax laibility. With the controversy there has been number of stories that has build, the recent one is the involvement of the prime minister and how he is holding the Nepal government staffs from taking action against Ncell for not paying tax. It has surfaced that Ncell has paid a hefty amount to the Party in context of making the settlement before the election.

This case has questioned the current Nepal Government's interest and action mechanism upon why they have not been able to take any action against Ncell. 

In the past When TeliaSonera sold Reynolds Holdings shares in Ncell to Axiata for over $1 billion, Nepal’s Large Tax-payers’ Office had said Reynolds owed the government Rs35 billion in taxes and demanded it pay the amount and fines to a total of Rs61 billion.

Ncell Nepal refused to pay that full amount, and transferred only Rs21 billion capital gains tax. After this, the writ was filed, and the Supreme Court on Wednesday also rejected a case filed by Ncell.

The case became controversial after two foreign investors traded ownership of a Nepal-based telecom company. Since TeliaSonera has already left Nepal, the Court found that the buyer is liable to pay capital gains tax if the seller did not.

Saturday, January 21, 2017

No 4G for Ncell Axiata Group

The controversy of capital gains tax (CGT) of Ncell during its takeover has been a long lasting headache for the Nepal government. With view of that  the lawmakers of Nepal have decided not to  allow 4G services to Ncell in Nepal. It has been confirmed that till  it clears the outstanding capital gains tax (CGT) to the Nepal Government, 4G services will be withheld for Ncell Axiata Group.

Axiata Group acquired Ncell last December 2015 from TeliaSonera and Reynolds for US$1.365 billion . The takeover  drew immense criticism as Ncell did not pay CGT as required by the law which is expected to be NRs 23 billion. The deal effectively secures Axiata an 80 percent equity interest and full control over Ncell.

The Nepal Telecommunications Authority (NTA) rolled out  4G  plan for Ncell in the last week of October last year. The Nepal Telecom (NT) has already started its soft launch of  4G service in Nepal after obtaining the licence from NTA.

Axiata Group is  one of the largest Asian telecommunication companies, Axiata today operates in ten countries, servicing approximately 290 million subscribers. With a diverse portfolio in mobile network operations, communications infrastructure services and digital services, the Group pieces together the best in connectivity, technology and people in its vision of Advancing Asia.

Axiata has controlling stakes in market leading mobile operators in South East Asia and South Asia. Axiata Group of companies operate under the brand name of ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and 'Ncell' in Nepal. Further to this, the Group also holds strategic interests in ‘Idea’ in India and ‘M1’ in Singapore.

Sunday, August 5, 2012

Telecommunication industry in Nepal, a question of options…


Communication and technology has advanced so much that cell phones have become an essential part of our lives. We use cell phones and its services like anything. From the wake up alarm to calculating future forecast-zodiac signs everything is possible with in a press of a button. One thing I’m really amazed of is in this tussle of service and marketing options things have changed but there is no relief to the public. The prices of services have gone up and quality options are there but the clients are bound to suffer in number of ways.

1. You cannot leave your previous number

2. You have to pay extra money

3. You have to face bad services

4. Your complain goes unheard

5. You have to carry more mobile phones

“Reality of today if there is service there is no network and if there is network there is no service,” so where is the STANDARD?

Now getting down to a more practical approach a cell number is not just a number. It’s an identity or it’s who you are? No-matter how easily you may say if you need service then opt for the quality one, then what’s the big fuss, where is standardization?

In-fact the customers are burdened to carry two lines NTC as well as Ncell. As they cannot leave the NTC as it’s their older number and Ncell coz it’s quality. I have seen number of people who carry two phones why because it’s not a choice but it’s a compulsion.

I was shocked and amazed when I saw an advertising saying 1.75 per minutes to US using the 1424 by NTC that’s like super cool. I was so tempted by the advertisement that I even used it number of times and to my satisfaction the service was good. But somewhere in my mind I started to compare it with the existing plans and services that are available. You know calling US was cheaper than calling Nepal than what’s the use? Where is our telecommunication industry moving, the service of calling Kathmandu to Kathmandu is bad and the outbound calls are cheap and good. What a joke…….?

Likewise, another issue is these days private telecommunication companies are more focused towards easy distribution of their connection or expanding their network which to some extent is correct from their point of view but what about the quality and standard, do any of these companies follow any norms. They rarely care about any other thing. They work as money making machine where they focus on loud offers and marketing option which in return comes back to us in the form of higher tariff rates so where the government regulator body and what is it doing…?

One thing I could not understand is why aren’t we getting proper service? The infrastructure is there, the mechanism is there, then where do we lack and what should the public expect…

For instance Ncell has the best quality service but once you make a call the money flows like anything where as if you look at the NTC then they have the cheapest service but relatively the quality is down.

Last time I was using my Ncell calling on the same line for about 2 -3 minutes and walla Nrs 8 gone. I cared less but what about the tariff rates and what is happening around? Hello Ncell to ncell is that expensive god save me. Relatively quality matters but hey in a long run money matters as well. It’s the same company that marketed Ncell to ncell free during its beginning days.

I bet the standardization in telecommunication is a big issue that has been ignored in Nepal, the Nepal Telecommunication Authority (NTA) the regulatory body of government has been monitoring and controlling the mechanism in a more upper hand way where they manage the bandwidth and bandwidth line but they care less at the public service sector. STANDARIZATION is a more prominent issue that starts from the point of the service generation to the point of its use and impact, but I guess the NTA fails to realize this. At public service level they hold no presence and quality has been subsidized that’s manipulated by companies in their respected ways.

“We need services but with standardization is our demand”

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