Telecommunication Law and Regulatory Framework in Nepal

Advocate Babu Ram Aryal, Chairman of the Center for Law and Technology in Kathmandu, Nepal, provides insights into the history and evolution of telecom regulation in Nepal. The establishment of Nepal Telecommunications Corporation and Nepal Telecommunications Authority, along with key telecom laws and policies, demonstrate the country's commitment to modernizing and expanding telecommunication services while safeguarding consumer rights. The journey from MOHAN AKASHWANI to the current regulatory framework showcases Nepal's advancements in the telecom sector.

• Telecommunication
• Nepal
• Regulation
• Advocate
• Telecom

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1. Telecommunication Law and Regulatory Framework in Nepal Advocate Babu Ram Aryal Chairman, Center for Law and Technology, Kathmandu, Nepal

2. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 This is prepared for the Broadband Policy Course in Nepal Jointly Organized by LIRNEasia, Center for Law and Technology and Internet Society Nepal at Pokhara, Nepal on 16-19, Feb 2019. 2

3. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Telecom Regulation in Nepal Operating any form of telecommunication service In Nepal dates back to 1970. However, telecom service was formally provided mainly after the establishment of MOHAN AKASHWANI in B.S. 2005. Later as per the plan formulated in the First National Five year plan (2012-2017 Department was established in B.S. 2016. BS); Telecommunication To modernize the telecommunications services and to expand the services, during third five-year plan (2023- 2028), Telecommunication Department was converted into Telecommunications Development Board in B.S. 2026. 3

4. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 After the enactment of Communications Corporation Act 2028, it was formally established as fully owned Government Corporation called Nepal Telecommunications Corporation in B.S. 2032 for the purpose of providing telecommunications services to Nepalese People. Nepal Telecommunications Authority as an autonomous regulatory body has been established on March 4, 1998 as stipulated within the framework of the Telecommunication Act 1997 A.D. and Telecommunication Regulation 1997 A.D. 4

5. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Major Telecom Laws & Policies Telecommunication Act, 1993 Telecommunication Rules, 1993 National Broadcasting Act 1993 A. D. 5

6. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Telecommunication Act, 1994 To develop and extend or cause to develop and extended the Telecommunications Service in such a way that it protects the rights and interests of the consumers. [S. 13(m)] 6

7. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Telecommunication Act, 1994 In case it requires to stop the transmission of information or to control transmission system due to the state of emergency or national security, Government may carry out the following acts: - To take temporarily the Telecommunications Line and the Telecommunications System installed, operated or supervised by the Licensee under its possession, To order to tape the information, to trace the transmitter of the information or to stop such information related to any specific subject, person or community. [S.19(1)] 7

8. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Telecommunications: Meaning "Telecommunications" means the act of emission, transmission or reception, through the agency of electricity or electromagnetism, of any sounds, signs, signals, writings, images or intelligence of any nature, by the wire, radio, optical or other electromagnetic systems, whether or not such signs, signals, writings, images, sounds or intelligence have been subjected to rearrangement, computation or other change in any manner for their emission, transmission or reception. 8

9. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Regulatory Framework: NTA Telecommunication Licenses are given by Nepal Telecommunication Authority 9

10. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Nepal Telecommunication Authority 10

11. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Nepal Telecommunications Authority Nepal Telecommunications Authority is an independent body founded under the Telecommunication Act 1997. The NTA is responsible for regulating all matters related to telecommunications (wireless, cellular, satellite and cable) of Nepal. The then Government of Nepal's on December 25, 1995 (2052/09/10) decided to welcome private sector into the telecommunication sector in the country. This decision of the cabinet was meant to be a liberalization policy in the ICT for development. 11

12. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Formation of the Authority As per the clause 5 of the Telecommunication Act 1997 A. D. , the Authority shall consist of five Members including the Chairman who are qualified and experienced, as prescribed in the technical and administrative, market management, accounts and auditing or legal field relating to the Telecommunications Service. Nepal Government shall constitute a committee comprising of experts from the related sectors, to make recommendation for the appointment of the Chairman and Members of the Authority and Nepal Government shall on the recommendation of the said committee appoint the Chairman and Members of the Authority. The Authority may, if it deems necessary, invite any expert to participate in the meeting of the Authority an observer. 12

13. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Board of NTA Mr. Purusottam Khanal, ActingChairman Mr. C Mani Chaulagai, Member Mr. Teknath Acharya, Member Mr. Hem Kumar Shrestha, Member Mr. Rammani Duwadi, Member 13

14. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Function To provide suggestions to Government of Nepal on the policy, plan and program to be adopted by Government of Nepal for the development of the Telecommunications Service. To make the Telecommunications Service reliable and easily available to the public. To make necessary arrangement to avail basic telecommunications Service and facilities in all rural and urban areas throughout the Nepal. To involve the national and foreign private sector investors in the operation of the Telecommunications Service. To make arrangement for the coordination and healthy competition among the Providers 14

15. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Functions To prescribe, fix and approve the standard and quality standard of the plant and equipment relating to the Telecommunications and the Telecommunications Service. To regularize and systematize Telecommunications Service To grant the license to operate the telecommunications service To approve and regularize the fees to be collected by a person having obtained License for providing the Telecommunications Service. To perform the functions relating to the frequency in accordance with the policy determined by the Radio Frequency Policy Determination Committee. To develop and extend the Telecommunications Service in such a way that it protects the rights and interests of the consumers. 15

16. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Quality and Standard of Service NTA shall determine the quality and standard of the machine, equipment and facilities relating to the Telecommunications and the Telecommunications Service. The Authority shall Prescribe the minimum standard to be maintained by a License in operating the Telecommunications Service. 16

17. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Power to Issue Orders or Directives NTA may, in view of the policy and guidelines of Government of Nepal, issue necessary orders or directives to the Licensee and it shall be the duty of the concerned person to comply with such orders or directives. NTA may require the particulars of the activities carried out by the Licensee and the particulars related to the Telecommunications Service operated by the Licensee and it shall be the duty of the concerned person to provide such particulars. 17

18. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Power of Inspection & Investigation The Authority may, if it deems necessary, inspect or investigate the activities carried out or the services provided by the Licensee, at any time. It shall be the duty of the concerned Licensee provide information or particulars and documents required by the Authority, in course of the inspection or investigation. 18

19. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Special Powers of Government 19

20. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 State of emergency/National security To take temporarily the Telecommunications Line and the Telecommunications System installed, operated or supervised by the Licensee under its possession, To order to tape the information, to trace the transmitter of the information or to stop such information related to any specific subject, person or community. After the expiry of the circumstance stated above, the telecommunications Line and Telecommunication System so possessed by Government of Nepal shall be returned to the concerned Licensee. 20

21. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Power to Issue Directives Government of Nepal may, from time to time, issue necessary directives to the Authority in connection with Diversification, extension and regularization Telecommunications Service in line with the Telecommunications policy of the country of the It shall be the duty of the Authority to comply with such directives. 21

22. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Telecommunication Act, 1994 In case it requires to stop the transmission of information or to control transmission system due to the state of emergency or national security, Government may carry out the following acts: - To take temporarily the Telecommunications Line and the Telecommunications System installed, operated or supervised by the Licensee under its possession, To order to tape the information, to trace the transmitter of the information or to stop such information related to any specific subject, person or community. [S.19(1)] 22

23. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Right of Way Right to Use Land, Power To Inspect, Repair or Transfer the Telecommunications Line From One Place to Another Place, Entrance to Other's House and Land, Compensation 23

24. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Radio Frequency Policy Determination Committee Minister or Minister of State, Communication and IT Secretary, Ministry of Home , Secretary, Ministry of Defence, Secretary, Ministry of Tourism and Civil Aviation, Secretary, Ministry of Information and Communications, Chairman, Nepal Telecommunications Authority At least Gazetted first class or expert Officer equivalent there to designated by the Government 24

25. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Functions of the Committee To determine the policy relating to radio frequency. To fix and allocate the radio frequency for different services. To determine the pricing policy of radio frequency. To determine the policy for international and multi purpose coordination of radio frequency. 25

26. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Frequency Allotment Policy 26

27. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Crime and Punishment If a person contravenes the provisions of this Act or the Rules made hereunder or fails to uphold the orders or directives by the Authority, the Authority may award a fine of up to Fifty Thousand Rupees to such person, and if any loss or damage is caused to anybody due to such offence, the Authority may cause to realize the amount of such damage or loss or also the compensation thereof from the offender. If any person operates the Telecommunications Service without obtaining the Licence pursuant to this Act or operates the Telecommunications Service without complying with the terms and conditions mentioned on the Licence, the Authority may award a fine up to Five Lakhs Rupees to such person and may also cause to stop such act. (3) If a person misuses or unauthoritatively uses the Telecommunications Service or causes loss or damage to any property related to the Telecommunications Service, the Authority may realize the amount of such loss or damage tend may impose a fine according to the amount. 27

28. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 If a person abuses; threatens or causes unnecessary harassment through the Telecommunications Service, the Authority may award a fine of up to Twenty Five Thousand Rupees to such person and may also cause to stop such service. Provided that, before stopping the Telecommunications Service, the Authority shall provide the concerned person with proper opportunity of his clarification. If a person acts intentionally to cause adverse effect damage or cause any other loss or damage to the Telecommunications Line, Telecommunications System or the equipment or any other structure related to such Telecommunications Line or Telecommunications System or induces for such acts or attempts to do such acts such person may be fined with an amount equal to loss or damage as well or punished with an imprisonment for a term not exceeding five years or with both punishment according to the degree of crime. 28

29. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Competent Court/Tribunal 29

30. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Broadband Policy 30

31. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Broadband Policy: Target Expand availability of minimum 512 KBPS download speed in general and availability of up to 10 Mbps in urban area on demand, Ensure access and coverage of Broadband in 45 percent household by 2018, Ensure the availability of selection of service from multiple service providers in urban area, Connecting all the district Headquarters, by 2018, be connected by the optical fiber network, Establishment of 1500 e-VDC by 2018 (Now no VDC) fully equipped with Broadband and service, To expand wired or wireless broadband to all the VDCs by 2020, 31

32. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Broadband Policy: Target Ensure Broadband service to rural areas, out of reach of commercial expansion of Broadband, as well as to community school, social organization and rural health institutions by 2020 AD. By 2018, spectrum bands defined by World Radio communication Conferences for the purpose of IMT and IMT Advanced technology shall be made available in wireless, with preference. Bring the tariff of the Basic Broadband Service within 5 percent income of per capita income. By 2020, to establish a Community Information Center at every VDC level. Connect the broadband service to all the government hospitals and at least 80 percent of the health centers shall be connected with Broadband service by 2020, To provide broadband service to all the government office at district level by 2020. 32

33. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 ICT Policy 2015 To reach in the top second quartile in 2020 in the index of Network Readiness and E-governance Index To make 75 percent population digital literate. Ensure broadband service for 90 percent population, Contribute to the National GDP by 2.5 percent of from the Information and Communication Technology industry (Other than Telecom) Ensure the Access to Internet to all Nepali by 2020 80 percent of the citizen centric government services shall be provided online, By 2017, all the government broadcasting system shall be converted into digital. 33

34. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 IT Bill and ETA IT Bill has been proposed One of major provision is registration of Social Media Network 34

35. Advocate Babu Ram Aryal, Chairman, Center for Law and Technology 9/17/2024 Thank you Babu Ram Aryal Center for Law and Technology baburam@cltnepal.com /@merobabu/@cltnepal 35