KATHMANDU: Nepal Telecom Authority (NTA), which has been urging Nepal Telecom (NT) to return the temporary frequency, is set to take action against NT if it does not comply.

NT spokesperson Surendra Bahadur Thike said the additional frequency is currently being utilised in the system in Kathmandu Valley and some rural areas too. "As the frequency is already being utilised we are unable to heed the decision of NTA," said Thike adding that since one year NT has been asking NTA to solve the frequency problem. Thike said, "If we return the frequency that NTA has asked for, NT will suffer a fall of in its service quality and that will affect our consumers."

NTA director Ananda Raj Khanal said that if NT fails to return the spectrum, NTA will have no option left but to take action against NT. Khanal said, "Since a long time, we have been asking NT to return the frequency but there is no response. If the conflict continues, we will definitely take action and we might even take to legal recourse if necessary."

Khala added, "We have already decided in principle to grant 2.4MHz to Smart Telecom for its service operation in rural areas and if NT continues to use it in its system, both the telecom service providers will be afflicted by poor quality."

NTA issued the second Rural Telecommunications Service (RTS) license to Smart Telecom Pvt Ltd (STPL) on July 1, 2008. Under the license, STPL has been assigned 398 un-served Village Development Committees (VDCs) which lie in the four development regions out of the five regions except for Eastern Development Region. As per the license, the choice of technology is open in order to provide service in the stipulated area and even International Long Distance (ILD) service can be launched by payment of appropriate fee to NTA.

STPL launched its VSAT services from November 26, 2009 and its GSM services will be launched shortly.