KATHMANDU: Nepal has restarted the process of auctioning mobile spectrum after more than six and a half years, with the Nepal Telecommunications Authority (NTA) inviting applications for the remaining spectrum in the 800 MHz band.

The NTA published the auction notice on Tuesday, calling the available spectrum “residual spectrum.” The auction will be conducted in two stages, beginning with a pre-qualification assessment, followed by a sealed-bid auction among eligible applicants.

Companies seeking to participate must hold a basic telephone or mobile service licence and have cleared all outstanding payments to the regulator, including royalties, the Rural Telecommunications Development Fund (RTDF) contribution and spectrum fees. Operators that have already reached the spectrum ceiling set by the Radio Frequency Policy will not be eligible.

The 800 MHz band is considered valuable for expanding coverage because lower-frequency signals travel farther and perform better in geographically difficult areas. Nepal Telecom already uses the band for 4G services, particularly making it important for rural and remote coverage.

Nepal Telecom and Ncell are therefore expected to be the main potential bidders, although their eligibility and the amount of spectrum they can acquire will depend on their existing holdings and the regulatory spectrum ceiling.

Nepal last held a mobile spectrum auction in December 2019, when Ncell won the remaining 1800 MHz spectrum after offering Rs5.8 million per MHz, against Nepal Telecom’s bid of Rs5.7 million per MHz.

The NTA has given applicants 45 days to submit their applications. The resumption of the auction marks the reopening of Nepal’s spectrum market after a prolonged gap and could pave the way for further spectrum auctions, including spectrum for 5G.