HIMALAYAN NEWS SERVICE
KATHMANDU: Nepal Telecommunications Authority (NTA) said that it will discourage the trend of frequency hoarding in the new merger and acquisition policy.
The concerned companies should surrender their extra frequency after six months of a merger according to the policy enacted by Radio Frequency Determinism Committee under the Ministry of Information and Communications, said spokesperson of the authority Kailash Prasad Neupane.
As per the frequency distribution and pricing policy endorsed by the 14th meeting of the Radio Frequency Determinism Committee last year, operators, based on their subscriber base and uses of the frequency, are liable to pay 0.7 percent of total annual income as frequency fee annually.
The committee has fixed Rs 7 million for a MHz spectrum for extra spectrum being hoarded or spectrum that are not in use by operators. The merger and acquisition policy will make service providers liable to surrender extra frequency since frequency is limited and considered a natural resource, said Neupane.
NTA had formed a committee led by former secretary Madhav Paudel to prepare a report on the possibility of mergers and acquisitions. The committee has suggested including procedure conditions for mergers after studying contemporary global trends of mergers and acquisitions.