KATHMANDU: Private telecom operator Ncell contributed Rs 14.59 billion to the government in taxes, fees, royalties and other statutory payments during the first nine months of the current fiscal year, reaffirming its position as one of Nepal’s largest taxpayers despite a slight decline in revenue.

According to the company’s financial data, Ncell generated Rs 24.33 billion in total revenue between Shrawan and Chaitra of FY 2082/83, with government payments accounting for 60.81 percent of its total income. Although the company’s revenue declined by 1.05 percent compared to the same period last fiscal year, its contribution to the national treasury remained substantial.

The largest payment was made toward the GSM licence renewal fee, amounting to Rs 3.29 billion. Ncell also paid Rs 2.12 billion in telecommunications service fees, Rs 1.96 billion in frequency fees, Rs 1.74 billion in Value Added Tax (VAT), Rs 1.29 billion in royalties, Rs 1.25 billion in advance income tax, Rs 1.08 billion in customs duty, Rs 895.4 million in tax deducted at source (TDS), Rs 649.6 million to the Rural Telecommunications Development Fund, Rs 349.8 million in ownership tax and Rs 270,000 for its ISP licence.

According to the latest data from the Nepal Telecommunications Authority (NTA), Ncell had 14.03 million voice subscribers and 12.21 million mobile broadband users as of Baisakh, while its 4G network served 12.12 million customers, maintaining its position as one of Nepal’s largest mobile service providers.

Despite its significant contribution to government revenue, Nepal’s telecommunications sector continues to face major challenges in next-generation network development. While neighbouring countries including India, China, Bangladesh and Afghanistan have already begun testing or commercially deploying 5G services, Nepal has yet to make meaningful progress.

State-owned Nepal Telecom has received approval to conduct 5G trials but has yet to expand the service as expected. Meanwhile, Ncell has applied three times for permission to launch 5G services, but regulatory approval is still pending.

The Ministry of Communication and Information Technology is currently preparing to initiate the auction process for 5G spectrum by determining the base price for spectrum allocation. Both Nepal Telecom and Ncell have expressed interest in acquiring spectrum in the 2,600 MHz band for future 5G deployment.

However, industry experts say the high cost of spectrum acquisition and network infrastructure remains a major hurdle. They estimate that nationwide deployment of 5G services in Nepal could require an investment exceeding Rs 40 billion, at a time when telecom operators are facing slowing revenue growth and increasing financial pressure.