Chapter 4 — Institutional Knowledge and Related Laws¶

1. Nepal Telecom (Nepal Doorsanchar Company Limited)¶

1.1 Introduction & Background¶

Nepal Doorsanchar Company Limited (NDCL), widely known as Nepal Telecom (NT / NTC), is the state-owned (majority government-owned) telecommunications service provider of Nepal.

• Registered under the Company Act and converted into a public limited company on Baisakh 1, 2061 BS (13 April 2004).
• Central office: Bhadrakali Plaza, Kathmandu.
• It is the sole provider of fixed-line (PSTN), ISDN, and leased-line services in Nepal.
• Government of Nepal holds the majority stake (~85%), with the remaining shares held by the general public and staff.

Historical Evolution¶

1.2 Vision, Mission & Goal¶

1.3 Objectives of Nepal Telecom¶

1. Provide reliable, affordable, and quality telecom services throughout Nepal (urban & rural).
2. Expand telecom infrastructure to achieve universal access.
3. Adopt modern technologies to enhance service quality and capacity.
4. Contribute to the national economy (a major taxpayer & dividend provider to GoN).
5. Operate commercially and competitively while serving social obligations.
6. Bridge the digital divide between rural and urban areas.

1.4 Organizational Structure¶

Nepal Telecom follows a hierarchical (line & staff) structure:

• General Body — Supreme authority; shareholders, chaired by a representative of the Government.
• Board of Directors — Policy-making body; chaired by a Chairperson nominated by GoN.
• Managing Director — Chief Executive responsible for day-to-day operations.

1.5 Scope of Nepal Telecom¶

1.6 Technologies Adopted in Service Delivery¶

1.7 Tariff (Rate) Determination Provisions¶

• Nepal Telecom, as a licensee, must get its service charges (tariff) approved by the NTA (per Section 42 of the Telecommunications Act 2053).
• The tariff list, with the date of enforcement, must be submitted to NTA at least 3 months in advance.
• Tariff rates must be fair, reasonable, and non-discriminatory.
• NTA issues tariff guidelines; rates are based on cost + reasonable return principles.

1.8 Relationship with Government & Stakeholders¶

2. Nepal Telecommunications Authority (NTA)¶

2.1 Establishment¶

• Established under Section 3 of the Telecommunications Act, 2053 (1997) in 2055 BS (1998 AD).
• An autonomous and corporate body with perpetual succession, its own seal, and the power to acquire property, sue, and be sued.
• Central office located in the Kathmandu Valley.
• Functions as the independent regulator of the telecom sector.

2.2 Constitution of the Authority¶

2.3 Goals & Objectives¶

• Make telecom services reliable and easily available to the public.
• Ensure basic telecom services reach all rural and urban areas.
• Promote healthy competition and private-sector participation.
• Protect consumer rights and interests.
• Develop Nepal as an international transit for telecommunications.

2.4 Functions and Duties (Section 13 of the Act)¶

The Act lists 15 functions (clauses a–o):

2.5 Other Powers of NTA¶

• Issue orders/directives to licensees (Sec. 15)
• Settle disputes between licensees, or licensee & customer (Sec. 16)
• Inspect and investigate licensee activities (Sec. 17)
• Cancel licenses for violations (Sec. 28)
• Impose penalties (fine up to Rs. 50,000) (Sec. 47)
• Operate the Rural Telecommunications Development Fund (RTDF)

3. Telecom Services in the Government's Periodic Plan¶

Key Thrusts (Sixteenth Plan & related targets)¶

• Broadband for all — expand fiber & broadband to all local levels (Gaupalika/Nagarpalika).
• Digital Nepal — implement the Digital Nepal Framework to digitize governance, agriculture, health, education, etc.
• Rural connectivity — use the RTDF to extend service to remote areas.
• e-Governance — digital public service delivery.
• IT industry promotion — IT parks, startups, IT-BPO export.
• 5G readiness & spectrum management.
• Telecom infrastructure treated as a key enabler of economic growth and the SDGs.

4. Telecommunications Act, 2053 & Regulation, 2054¶

4.1 Overview¶

4.2 Salient Features¶

(a) Licensing (Chapter 5)¶

• No telecom service may be operated without a license (Sec. 21).
• License issued under Section 24, within 90 days of application.
• Maximum license period: 25 years (not more than 10 years at a time).
• Renewal: for a period not exceeding 5 years at a time.
• If multiple applicants qualify → competitive bidding on license fee, renewal fee & royalty.
• Sale/transfer of license needs NTA approval (Sec. 27).
• License may be cancelled for failure to operate or for violations (Sec. 28).

(b) Royalty (Section 32)¶

• Licensees must pay royalty to the Government as prescribed or as promised (in bidding).

(c) Rural Telecommunications Development Fund — RTDF (Section 30)¶

• Licensees deposit a percentage of annual income into a fund.
• Used for developing & extending telecom service in rural areas.

(d) Radio Frequency Policy Determination Committee (Section 49)¶

• Chaired by the Minister/Minister of State for Information & Communications.
• Determines frequency policy, allocation, and pricing.
• Members include Secretaries of Home, Defence, Tourism & Civil Aviation, Information & Communications, and the Chairman of NTA.

(e) Special Powers of Government (Chapter 4)¶

• During emergency/national security, the Government may take over telecom lines, tap, trace, or stop transmission.

(f) Punishment & Appeal (Chapter 10)¶

4.3 Telecommunications Regulation, 2054 (1997)¶

• The subordinate legislation (rules) framed under the Act.
• Details the procedures for: license application format, fees, renewal, royalty, frequency distribution, QoS standards, and consumer service terms.

5. Memorandum & Articles of Association of Nepal Telecom¶

Key Contents of NT's MoA¶

• Name: Nepal Doorsanchar Company Limited
• Objective: Provide telecommunications services across Nepal
• Authorized & paid-up capital
• Liability: Limited by shares
• Government shareholding (~85%)

6. Nepal Telecom Employee Regulations, 2078¶

The syllabus specifies Chapters 7, 9, 10, and 11.

6.1 Chapter 7 — Leave (बिदा)¶

Common categories of leave for employees:

• Leave is a facility, not a right — it may be refused/cancelled if work demands.
• Unused accumulated leave is generally encashed at retirement (subject to ceiling).

6.2 Chapter 9 — Conduct & Discipline (आचरण)¶

Employees must:

• Maintain discipline, honesty, and integrity.
• Not engage in political activities, strikes, or unauthorized organizations.
• Not disclose confidential official information.
• Not accept gifts/bribes or have a conflict of interest.
• Not engage in other business/employment without approval.
• Devote full attention to official duties and follow the chain of command.

6.3 Chapter 10 — Punishment & Appeal (सजाय र पुनरावेदन)¶

Punishments are typically classified as:

• Employee must be given a reasonable opportunity to defend (natural justice).
• Appeal can be filed to the prescribed authority within the stipulated time.

6.4 Chapter 11 — Retirement, Gratuity, Pension & Other Benefits¶

7. Nepal Telecom Financial Regulations, 2071¶

The syllabus specifies Part 2 (Procurement) and Part 3 (Ch 1: Plan & Budget; Ch 3: Custody & Property).

7.1 Part 2 — Procurement (खरिद)¶

• Procurement of goods, works & services must be transparent, competitive, and economical.
• Methods: open/sealed bidding, sealed quotations, direct purchase (within thresholds).
• Aligned with principles of the Public Procurement Act/Rules.
• Requires technical specification, cost estimate, bid evaluation, and approval by the competent authority.
• Provisions for bid security, performance bond, and liquidated damages.

7.2 Part 3, Chapter 1 — Plan & Budget (योजना र बजेट)¶

• Annual budget prepared in line with the company's business plan & strategy.
• Classified into operating (revenue) and capital expenditure.
• Budget must be approved by the Board and monitored via variance analysis.

7.3 Part 3, Chapter 3 — Custody & Property (जिन्सी र सम्पत्ति)¶

• Proper recording, custody, and protection of company assets (inventory/jinsi).
• Periodic physical verification of property and stores.
• Rules for handover, write-off, auction/disposal of obsolete/unusable assets.
• Fixing accountability for loss, damage, or misuse of company property.

8. Company Act, 2063 (2006)¶

The syllabus specifies Chapters 2, 3, and 5.

8.1 Chapter 2 — Incorporation of a Company¶

• A company is incorporated by registering with the Office of the Company Registrar (OCR).
• Required documents: MoA, AoA, application, and prescribed fee.
• On registration, a certificate of incorporation is issued.
• The company becomes a separate legal entity (perpetual succession, common seal, limited liability).

8.2 Chapter 3 — Memorandum, Articles & Prospectus¶

• MoA — name, objectives, registered office, capital, liability.
• AoA — internal rules for governance, meetings, shares, directors.
• Prospectus — public document inviting the public to buy shares (public companies); must be approved by OCR and not misleading.
• MoA/AoA may be amended by special resolution in the general meeting.

8.3 Chapter 5 — Meetings of the Company¶

9. Telecommunications Policy, 2060 (2004)¶

Main Objective¶

To create a favourable environment to make telecom service reliable, affordable, and universally accessible to all inhabitants of Nepal, supporting overall social and economic development.

Key Objectives & Features¶

1. Universal access to telecom services across the country.
2. Encourage private-sector participation and investment.
3. Promote fair competition in a liberalized market.
4. Establish a Rural Telecommunications Development Fund (RTDF) for rural expansion.
5. Strengthen the regulator (NTA) for effective regulation.
6. Improve quality of service and adopt modern technology.
7. Make telecom a tool for socio-economic upliftment and bridging the digital divide.

10. Digital Nepal Framework, 2076 (2019)¶

Concept¶

A national digital roadmap by the Ministry of Communication & Information Technology (MoCIT) to unlock economic growth and solve societal problems through digital technology.

"One Nation, 8 Sectors, 80 Digital Initiatives."

The 8 Sectors¶

Significance¶

• Drives socio-economic transformation & job creation.
• Improves governance efficiency and public service delivery.
• Supports e-commerce, IT-BPO, and fintech growth.
• Aligns with SDGs and the vision of a "Digital Nepal."

11. Information & Communication Technology (ICT) Policy, 2072 (2015)¶

Vision¶

To transform Nepal into an information- and knowledge-based society and economy.

Mission¶

To create conditions for the intensified development and growth of the ICT sector as a key driver of socio-economic development.

Major Targets¶

Significance¶

• Led to the renaming of the ministry to MoCIT (2017).
• Provided the policy basis for e-governance, broadband expansion, and IT industry development.

12. National Cyber Security Policy, 2080 (2023)¶

Purpose¶

To establish legal and institutional arrangements for a safe, secure, and resilient cyberspace in Nepal, protecting critical national infrastructure from cyber threats.

Key Objectives¶

1. Maintain secure cyberspace through legal & institutional frameworks.
2. Protect National Critical Information Infrastructure (CII).
3. Establish the National Cyber Security Centre (NCSC).
4. Build human resources & capacity in cyber security.
5. Make digital service delivery reliable and secure.
6. Coordinate at bilateral, regional & international levels to reduce cyber risks.

Institutional Mechanism¶

• National Cyber Security Centre (NCSC) — operational lead.
• National Cyber Security Implementation Committee — coordinated by the Joint Secretary (IT Division, MoCIT); includes representatives from NTA, Nepal Rastra Bank, Nepal Army, Nepal Police, and IT experts.

13. Quick Revision Summary¶