Ministry of Information and Communications

Nepali

सूचनाको हक सम्बन्धी
ऐन २०६४

Act & Regulations >>

Telecommunication Act, 2053 (1997)

Date of the Royal Assent and Publication
2053-9-17 (1 January 1997)

The Amending Act:
The Act Amending Some Nepal Acts Relating to Communications, 2057 (2001)
2057.10.18 (Jan 31, 2001)

Act number 18 of the year 2053 (1996)
An Act made to provide for telecommunications

Preamble:

Whereas, it is expedient to make the telecommunications service reliable and easily available, to get the private sector, as well, involved in the telecommunications service and to regularize and systematize such a service;

Now, therefore, Parliament has enacted this Act, in the twenty-fifth year of the reign of His Majesty the King Birendra Bir Bikram Shah Dev.

Chapter 1

Short title and commencement:
1. This Act may be cited as the "Telecommunications Act, 2053 (1997)".
2. This Act shall come into force on such date as His Majesty's Government may, by a notification published in the Nepal Gazette, appoint.[1]
Definitions:

Unless the subject or the context otherwise requires, in this Act,-
1. "Telecommunications" means any act of emission, transmission or reception, through the agency of electricity or electromagnetism, of any sounds, signs, signals, writings, images or intelligence of any kind, by the wire, radio, optical or other electromagnetic system, whether or not such sings, signals, writings, images, sounds or intelligence have been subjected to rearrangement, computation or other change in any manner for their emission, transmission or reception.
2. "Telecommunications line" means any wire, cable, equipment, tower, mast, antenna, tunnel, hole, pit, pole or other structure or object used or to be used in connection with the telecommunications system.
3. "Telecommunications system" means any equipment or a group of equipment used or to be used in connection with the telecommunications system.
4. "Telecommunications service" means a service relating to the acts of conveyance or reception of any sounds, signs, signals, writings or images by the wire, radio, optical or other electromagnetic systems, whether or not such signs, signals, writing, images, sounds or intelligence have been subjected to rearrangement, computation or other change in any manner for their emission, transmission or reception.
5. "Authority" means the Nepal[2] Telecommunications Authority established pursuant to Section 3.
6. "Chairman" means the Chairman of the Authority.
7. "Member" means the member of the Authority and this term includes the Chairman.
8. "License" means the license issued pursuant to Section 24 to operate the telecommunications service.
9. "Licensee" means a person licensed to operate the telecommunications service, pursuant to Section 24.
10. "Customer" means a person who receives the telecommunications service made available by the licensee.
11. "Charge" means the fees to be collected from the customer, for the telecommunications service provided pursuant to this Act.
12. "Person" includes a corporate body established pursuant to the law in force.
13. "Prescribed" or "as prescribed" means prescribed or as prescribed in the Rules or Bye-laws framed under this Act.
Chapter 2 --- Establishment and Constitution of Telecommunications Authority
Establishment of Telecommunications Authority:

A Nepal Telecommunications Authority is hereby established with a view to making the telecommunications service reliable and easily available and.managing and regularizing such service.
Authority to be autonomous and corporate body:
1. The Authority shall be an autonomous body and corporate with perpetual succession.
2. The Authority shall have a separate seal of its own for its acts and actions.
3. The Authority may, like an individual, acquire, use or otherwise manage movable and immovable property.
4. The Authority may, like an individual, sue and be sued by its name.
Constitution of Authority:
1. The Authority shall consist of five members including the chairman, who possess the prescribed qualifications and experiences in financial and technical,[3] market management, accounts and auditing or legal field, relating to the telecommunications service.
2. His Majesty's Government shall constitute a committee comprising experts in the related field, to make recommendation for the appointment of the Chairman and members of the Authority; and His Majesty's Government shall, on recommendation of the committee, appoint the chairman and members of the Authority.
3. The Authority may, if the deems necessary, invite any expert to participate its meeting as an observer.
4. The officer designated by the chairman from amongst the senior officer employees of the Authority shall act as the secretary of the Authority.
Office of Authority:

The central office of the Authority shall be located in the Kathmandu Valley; and the Authority may also open its branch offices within the Kingdom of Nepal, as per necessity.
Meeting and decision of Authority:
1. The Authority shall meet as per necessity.
2. The meeting of the Authority shall be held at such place, date and time as may be specified by the chairman.
3. The meeting of the Authority shall be presided over by the chairman, and in his absence, the meeting shall be presided over by a member selected by the members present at the meeting from amongst themselves.
4. The presence of more than fifty percent of the total number of members of the Authority shall be deemed to constitute a quorum for the meeting.
5. The opinion of the majority at a meeting of the Authority shall be deemed to be the decision of the Authority; and in the event of a tie, the chairman shall exercise the casting vote.
6. The Chairman shall authenticate any decision made by a meeting of the Authority; and the secretary of the Authority shall circulate such a decision to all members.
7. Other procedures relating to the meeting of the Authority shall be as determined by the Authority on its own.
Tenure of chairman and member:
1. (1) The tenure of the chairman and the member shall be of five years.
2. (2) In cases where the committee as referred to in sub-section (2) of Section 5 recommends for reappointment of the chairman and the member, showing their performance to be satisfactory, His Majesty's Government may reappoint them to the post of the chairman and the member.
Removal of chairman and member from office:
1. Notwithstanding anything contained in Section 8, His Majesty's Government may remove the chairman or member from his office in the following circumstances:-
  1. If he lacks competency,
  2. If he misbehaves,
  3. If he fails to carry out duties of his post honestly,
  4. If he becomes mentally disorder or insane, or
  5. If he has direct or indirect ownership or personal interest in any firm or body corporate which operates the telecommunications service or system.
2. Before removing the chairman or member from his office pursuant to sub-section (1), he shall be provided with a reasonable opportunity to defend himself.
Vacancy of post of chairman and member:

The post of the chairman and the member shall be deemed to be vacant in the following circumstances:-
1. If his written resignation tendered to His Majesty's Government is accepted,
2. If he completes his tenure pursuant to Section 8,
3. If he is removed from his office pursuant to Section 9,
4. If he is convicted by the court of any criminal offence, or
5. If he dies.
Terms and conditions of service of chairman:
1. The chairman shall be the full timer chief office-bearer of the Authority.
2. The remuneration, facilities and other terms and conditions of service of, and functions, duties and powers of, the chairman shall be as prescribed.
3. Once a person is appointed as the chairman, his remuneration, facilities and other terms and conditions of service shall not be altered to his disadvantage.
4. The member shall obtain a meeting allowance as prescribed for attending a meeting of the Authority.
Employees of Authority:
1. The Authority shall have employees in the required number in order to operate its functions.
2. The appointment, remuneration, facilities and other terms and conditions of service of the employees as referred to in sub-section (1) shall be as prescribed.
3. Notwithstanding anything contained in sub-section (2), His Majesty's Government may, at the request of the Authority, so depute any employee of His Majesty's Government or any corporate body to the Authority as to entitle him to get remuneration from the Authority itself pending the appointment of employees of the Authority.
Chapter 3 --- Functions, Duties and Powers of Authority
Functions and duties of Authority:

The functions and duties of the Authority shall be as follows:-
1. To provide suggestions to His Majesty's Government on the policy, plan and program to be adopted by His Majesty's Government for the development of telecommunications service.
2. To make the telecommunications service and facility reliable and easily available.
3. To make necessary provision to extend the basic telecommunications service and facility to all rural and urban areas throughout the Kingdom of Nepal.
4. To make the national and foreign private sector investors participate in operations of the telecommunications service.
5. To make arrangement for coordination and healthy competition among the persons providing the telecommunications service and facility, so as to provide such service and facility to all the public in general.
6. To prescribe, fix and approve standards and quality standards of the plants and equipment relating to the telecommunications and of the telecommunications service.
7. To regularize and manage the telecommunications service.
8. To grant the license to operate the telecommunications service .....[4]
9. To approve and regularize the fees to be collected by the licensee for provision of the telecommunications service.
10. To perform acts relating to the frequency in consonance with the policy determined by the radio frequency policy determination committee.
11. To carry out, or cause to be carried out, research works about the development and use of new technology in the field of telecommunications
12. To have the capable manpower developed for the telecommunications sector.
13. To develop and extend, or cause to be developed and extended, the telecommunications service in such a manner that it protects the rights and interests of the consumers.
14. To develop, or cause to be developed, Nepal as an international transit for telecommunications.
15. To carry out such other functions as are necessary and appropriate for the development and promotion of the telecommunications service.
Determination of quality standards and prescription of service standards:
1. The Authority shall determine the quality standards of the telecommunications service and of any machine, equipment and facility relating to the telecommunications.
2. The Authority shall prescribe the minimum standards to be maintained by the licensee in operating the telecommunications service.
Power to issue order or direction:
1. The Authority may, in view of the policy and direction of His Majesty's Government, issue necessary orders or directions to the licensee; and it shall be the duty of the concerned person to comply with such orders or directions.
2. The Authority may require description of the acts and actions carried out by the licensee and description related to the telecommunications service operated by the licensee; and it shall be the duty of the concerned person to provide such description.
Power to settle disputes:
1. The Authority shall have the power to settle disputes between the licensees or between the licensee and the customer relating to the telecommunications service.
2. The method and procedures of the settlement of disputes pursuant to sub-section (1) shall be as prescribed.
Inspection and Investigation:
1. The Authority may, if it deems necessary, inspect or investigate the activities carried out or the service provided by the licensee, at any time.
2. The Authority may, for the purpose of inspection or investigation pursuant to sub-section (1), designate any person or body of the Authority.
3. It shall be the duty of the concerned licensee to provide information or details and documents required by the Authority or the person or body designated pursuant to sub-section (2) in the course of inspection or investigation.
4. The procedures to be followed in the course of inspection or investigation pursuant to this Section, the provisions relating to reports thereof and execution of reports shall be as prescribed.
Chapter 4 --- Special Powers of His Majesty's Government
Power of His Majesty's Government to operate, or cause to be operated, telecommunications service on its own:
Notwithstanding anything contained elsewhere in this Act, His Majesty's Government may operate, or cause to be operated, the telecommunications service on its own.
Special powers of His Majesty's Government:
1. In cases where it is required to prevent the exchange of information or to control the system exchanging such information due to a state of emergency or national security, His Majesty's Government may carry out the following acts:-
  1. To take the telecommunications line and the telecommunications system installed, operated or being supervised by the licensee under its possession temporarily,
  2. To issue an order to tape the information related with a specific matter, person or community, to trace the transmitter of such information or to stop broadcasting such information.
2. After the expiry of the circumstances referred to in sub-section (1), His Majesty's Government shall return the telecommunications line and telecommunications system so possessed by it to the concerned licensees.
Power to issue directives:
His Majesty's Government may, from time to time, issue necessary directives to the Authority in connection with diversification, extension and regularization of the telecommunications service in consonance with the communication policy of the country; and it shall be the duty of the Authority to comply with such directives.

Chapter 5 --- Provisions relating to License
Prohibition on operation of telecommunications service without license:
After the commencement of this Act, no one shall operate the telecommunications service without obtaining a license.
Publication of notice for submission of pplication for license:
1. The Authority shall, before issuing a license to operate the telecommunications service other than the telecommunications service prescribed pursuant to sub-section (2) of Section 23, determine the number of licenses to be issued for such service and types of telecommunications and publish a public notice specifying the time limit to submit an application for the license.
2. Once a license is issued to operate any telecommunications service pursuant to sub-section (1), no other license shall be issued to operate the same telecommunications service until the period of five years.
  
  Provided, however, that this sub-section shall not bar the Authority from issuing the license to another person if the licensee fails to provide the telecommunications service as prescribed in the license or if, on the basis of objective evaluation, it seems that such telecommunications service is further required.
Application to be submitted for license:
1. Any qualified person who desires to operate the telecommunications service pursuant to this Act and has such capital, technical competency and professional efficiency as prescribed, has to submit an application to the Authority, setting out the particulars as prescribed, along with the economic and technical study report on the telecommunications service which he intends to operate as well as the plan of operations, within the time limit prescribed by the Authority pursuant to Section 22, for the license.
2. Notwithstanding anything contained in sub-section (1), an application may be submitted at any time for the license to operate the telecommunications service as prescribed by His Majesty's Government by a notification published in the Nepal Gazette on recommendation of the Authority.....[5]
3. Any persons who has been operating the telecommunications service prior to the commencement of this Act has to submit an application to the Authority for the license setting out the particulars relating to the service being operated by him, no later than six months form the date of commencement of this Act, and obtain the license within one year.
Provision of license:
1. Upon receipt of an application pursuant to Section 23, the Authority shall conduct necessary inquiry into the matter, and in the course of inquiry, if the Authority deems necessary to have additional information or details, it may require such additional information or details from the applicant.
2. After the inquiry made pursuant to sub-section (1), if the Authority thinks it appropriate to issue the license, the Authority shall issue the license to the applicant upon receiving the fee as prescribed, other than the license to be issued pursuant to sub-section (3) and (4).
3. If, while making an inquiry pursuant to sub-section (1), only one person from amongst the persons having submitted applications pursuant to sub-section (1) of Section 23 is found to be qualified to operate such telecommunications service, the Authority shall fix the license fee, renewal fee as well as royalty by holding negotiations with such a person and issue the license to that person.
4. If, while making an inquiry pursuant to sub-section (1), more than one person making application under pursuant to sub-section (1) of Section 23 are found qualified to operate such telecommunications service, the Authority shall give a notice to all of these persons to make a bid on the license fee, renewal fee as well as royalty and shall issue the license to the person who makes the highest bid.
5. While issuing the license pursuant to sub-section (2), the license has to be issued no later than ninety days from the date of receipt of application or receipt of additional information or details if such information or details are required pursuant to sub-section (1).
6. While issuing the license pursuant to sub-section (3) or (4), the license has to be issued no later than one hundred twenty days from the date of expiration of the time limit for making application or the date of receipt of additional information or details if such information or details are required pursuant to sub-section (1).
7. A person, who does not obtain the license within the time stipulated in sub-section (5) or (6), may file a complaint with His Majesty's Government within thirty days of expiration of such time limit; and any decision made by His Majesty's Government on such a complaint shall be final.
24 A. License not required:
Notwithstanding any thing contained elsewhere in this Act, no license shall be required to operate the telecommunications service as follows:
1. To establish a network by His Majesty's Government for its own purpose and operate the telecommunications service,
2. To install a network in consonance with international covenants in an aircraft registered outside the Kingdom of Nepal, and operate the telecommunications service,
3. To establish a network by a diplomatic mission for its own purpose and operate the telecommunications service,
4. To operate the telecommunications service within own house compound without getting it associated with the telecommunications system,
5. To operate other telecommunications services as prescribed.
Period of license and renewal:
1. The period of the license shall not exceed twenty five years.
  Provided, however, that no license shall be issued for a period exceeding ten years at a time.
2. A licensee desiring to have the license renewed has to submit an application to the Authority for its renewal before the expiration of the period of license within the prescribed period. If an application is so made, the license has to be renewed for a period not exceeding five years at a time.
3. The licensee referred to in sub-sections (3) and (4) of Section 24 has to pay the renewal fee as agreed by him to the Authority in order to get the license renewed pursuant to sub-section (2).
4. The licensee referred to in sub-section (2) of Section 24 has to pay the fee as prescribed to the Authority in order to get the license renewed pursuant to sub-section (2).
5. In cases where the license is not got renewed within the time limit referred to in sub-section (2), such license shall ipso facto be invalid.
Amendment to license:
1. If a licensee deems it necessary to amend any matter set forth in the license obtained by him, he has to submit an application to the Authority setting out the reasons therefor.
2. If the reasons for amendment to the license as mentioned in the application submitted pursuant to sub-section (1) are found reasonable and appropriate, the Authority has to amend the license within thirty days of receipt of such application, if such amendment does not affect the substantial matters of the license; and if it does not deem necessary to so amend the license, a notice thereof, accompanied by the reasons, has to be given to the applicant.
3. The fee as prescribed has to be paid to the Authority to amend the license pursuant to sub-section (1).
4. If the Authority deems it necessary to amend any matter mentioned in the license, it may give a notice thereof, accompanied by the reasons, to the concerned licensee.
5. If, after receipt of the notice pursuant to sub-section (4), the licensee does not deem it necessary to so amend his license, he may submit an application, also setting out the reasons therefor, to the Authority no later than fifteen days of the receipt of such a notice.
6. After receipt of an application pursuant to sub-section (5) or after expiration of that time limit, the Authority has to decide whether or not to amend the license and give a notice thereof to the licensee.
Sale or transfer or license:
1. If a licensee desires to sell or or other wise transfer his license to any other person, the licensee and the buyer or the transferee of the license have to submit to the Authority a joint application, accompanied by the reasons therefor, as well as the terms and conditions mutually agreed, for approval.
2. If any application is received pursuant to sub-section (1), and if, upon making necessary inquiry by the Authority, if it deems appropriate to sell or transfer the license to the person mentioned in the application, it has to give approval for such sell or transfer no later than thirty days of the receipt of application,; and if it deems inappropriate to give such approval, it has to give a notice thereof, accompanied by the reasons, to the applicant.
3. The fee as prescribed has to be paid to the Authority for the approval to sell or transfer the license.
Cancellation of license:
1. If the licensee fails to operate the telecommunications service within the time limit as specified in the license, the Authority may cancel such license.
2. If the licensee acts in contravention of this Act or the Rules made under this act and the terms and conditions set forth in the license, the Authority may issue an order to the concerned licensee to rectify such acts, also specifying a certain period of time.
3. If the licensee fails to rectify the acts within the period specified pursuant to sub-section (2), the Authority may cancel the license obtained by such a person.
4. Notwithstanding anything contained in sub-section (1) or (3), the licensee shall be provided a reasonable opportunity to submit his clarification.
5. A licensee who is not satisfied with cancellation of the license by the Authority pursuant to sub-section (3) may file a complaint with His Majesty's Government no later than thirty five days; and any decision made by His Majesty's Government on such a compliant shall be final.
Terms to be observed by licensee:
The terms other than those mentioned in this Act to be observed by the licensee while operating the telecommunications service shall be as prescribed.
To develop, expand and operate telecommunications service in directed area:
1. The licensee, pursuant to sub-sections (3) and (4) of Section 24, has to invest the prescribed percent of his total investment in the development, extension and operation of the telecommunications service in the rural area.
2. The rural area where the service has to be developed, expanded and operated pursuant to sub-section (1) shall be as specified in the license; and if it is not so specified, it shall be as specified by the Authority from time to time.
3. If any other licensee wishes to develop, extend and operate, on the basis of mutual agreement, the telecommunications service required to be so developed, expanded and operated by one licensee pursuant to sub-sections (1) and (2), the Authority may, after making necessary inquiry, grant permission.
4. The Authority shall create a fund for the development, extension and operation of the telecommunications service in the rural area; and the licensee shal each year deposit in the fund such amount of the annual income earned by him as specified by the Authority.
5. The Authority has to use the amounts deposited in the fund refered to in sub-section (4) for the development, expansion and operation of the telecommunications service in the rural area, subject to the telecommunications policy of His Majesty's Government.
6. The Authority may designate any licensee to develop, expand or operate the telecommunications service pursuant to sub-section (5); and such licensee has to develop, expand and operate the telecommunications service in the rural area specified by the Authority.
Interconnection and use of telecommunications system allowed:
1. Any licensee may mutually connect the telecommunications system developed by him with the telecommunications system developed by another licensee and use it.
2. If any licensee make a request to connect and use the telecommunications system developed by another licensee, the Authority has to allow the licensee to connect and use the same based on such reasonable terms and conditions as mutually agreed or, failing such mutual agreement, on such terms and conditions as determined by the Authority.
Royalty to be paid:
1. The licensee has to pay the royalty, as prescribed, to His Majesty's Government, pursuant to sub-section (2) of Section 24.
2. The licensee has to pay such royalty to His Majesty's Government as promised by him, pursuant to sub-sections (3) and (4) of Section 24.
3. The method and time of payment of royalty shall be as prescribed by the Authority.
Ownership of His Majesty's Government:
1. The ownership of the land, building, plant, equipment and other structure related to the telecommunications service involving more than fifty percent of its total capital investment by a foreign person or corporate body shall devolve on His Majesty's Government after the expiration of the license period.
2. The previous licensee may purchase the property of which ownership has deveolved on His Majesty's Government pursuant to sub-section (1), by paying the price fixed pursuant to sub-section (3) to His Majesty's Government, and operate the telecommunications service by again obtaining the license.
3. For purposes of fixation of the price referred to in sub-section (2), His Majesty's Government may, in consultation with the Authority, form a committee consisting of a maximum of five members.
4. After expiration of the period of license to operate the telecommunications service involving up to fifty percent of its total capital investment by a foreign person or corporate body, the previous licensee may operate it by againobtaining the license.
Chapter 6 --- Facilities Available to Licensee
Facilities relating to tax, charge:
1. If His Majesty's Government deems it necessary to encourage investment in the telecommunications services, it may, by a notification in the Nepal Gazette, exempt the licensee from tax for a certain period.
2. His Majesty's Government may, by a notification in the Nepal Gazette, grant full or partial exemption of the customs duty, sales tax and other charges to be levied on the importation by the licensee of such telecommunications related equipment as mentioned in that notification.
Foreign Exchange Facility:
1. If any foreign currency is invested as a loan or share capital so as to provide the telecommunications service, His Majesty's Government shall provide such foreign currency at the prevailing exchange rate as may be required to pay principal and interest of such a loan or to repatriate the investment.
2. If a licensee has to import the equipment necessary to operate the telecommunications service, His Majesty's Government shall provide the foreign currency required for such import, at the prevailing exchange rate.
3. His Majesty's Government shall, on recommendation of the Authority, provide such foreign currency to the licensee as he has to incur in obtaining membership from a foreign organization related with telecommunications or making agreement with a foreign person or organization, for the operation of the telecommunications service.
Chapter 7 --- Installation and Supervision of Telecommunications Line
Right to use land:
The licensee or his representative may install or hold and supervise the telecommunications line on or above any public or private land, also fix a pole or mast for this purpose, keep anything or support on a tree in such land or cut any tree if it causes a problem, loss or damage or obstacle to the telecommunications line.
1. If the land where the telecommunications line has been or to be so installed is a public land, no compensation shall be paid for such land; and where any public property constructed or installed there is lost or damaged, the licensee has to repair, maintain or reconstruct it to bring it to its previous position.
2. If the land where the telecommunications line has been or to be so installed is a private land of a person, the line has to be installed at the proper and appropriate place without causing any loss or damage to such a person; and where any of his property is lost or damaged in course of such installation, the licensee has to pay compensation.
3. The licensee's status in the place where the telecommunications line is kept or the land where it is used or installed shall not be more than the status of the user of the telecommunications line, and he shall have no other rights.
Power to inspect, repair telecommunications line or transfer it from one place to another place:
The licensee may transfer the telecommunications line or equipment erected or installed by him from one place to another place, as per necessity, inspect or repair and maintain it; and, for this purpose, he shall have the power to enter into the land where such telecommunications line or equipment is situated.

Provided, however, that if any loss or damage is caused to anyone in course of such repair or improvement of the telecommunications line, the licensee has to pay compensation to the concerned person.
Entry into other's house and land:
If, in course of operation of the telecommunications service, the licensee has to enter into anyone's house and land, he has to enter into such house and land only after giving a prior written notice to the concerned person. If any loss or damage is caused from such entry, the licensee has to pay compensation to the concerned person.

Provided, however, that if there is a reasonable ground to suspect that the telecommunications service is being unauthoritatively used or stolen in any house and land, the licensee may enter into the concerned house and land to inquire into the matter by giving a written notice immediately.
Provisions relating to compensation:
1. The licensee has to determine the compensation required to be paid by him pursuant to Sections 36, 37 and 38 and give a notice thereof to the concerned person no later than fifteen days form the date of occurrence of such act.
2. The amount of compensation equired to be paid pursuant to sub-section (1) shall be just and reasonable.
3. A person who is not satisfied with the amount of compensation determined pursuant to sub-section (1) may submit an application, accompanied by reasons, to the Authority no later than fifteen days from the date of receipt of the notice thereof. A decision made by the Authority on such application shall be final.
Use or acquisition of other's house and land:
1. If the licensee has to use or acquire any house and land belonging to another person for the expansion or distribution of the telecommunications service and fails to obtain or use the house and land from the concerned person, the licensee may, setting out that matter, submit an application to the Authority for the acquisition or use of such house and land.
2. Upon receipt of an application pursuant to sub-section (1), the Authority shall make necessary inquiry, and if, upon making such inquiry, it deems necessary and appropriate to have the house and land mentioned in the application acquired, it has to make recommendation to His Majesty's Government no later than thirty days of receipt of such application.
3. Upon receipt of the recommendation of the Authority pursuant to sub-section (2), His Majesty's Government may have such house and land acquired by the licensee in the same manner as the land is provided to a corporate body pursuant to the law in force. In the case of a governmental land, it may have it provided on lease for the period of the license.
Chapter 8 --- Fixation and Realization of Service Charge
Provision of service:
1. If the license receives a deposit from the customer to render the telecommunications service, he has to render the telecommunications service no later than six months of receipt of such deposit, and if the licensee fails to render such service within that period of time, he has to pay to the customer an interest by ten percent from the date of receipt of the deposit.
  
  Provided, however, that the service has to be provided no later than one year of receipt of the deposit.
2. The interest payable to the customer pursuant to sub-section (1) may be deducted from the charge of the telecommunications service consumed by the customer.
Service charge:
1. The licensee may levy and realize the service charge for the telecommunications service provided by him to the customer.
  1. The rate of such service sharge has to be approved by the Authority.
  2. The rate of such service sharge has to be published as directed by the Authority.
  3. The rate of such service charge has to be proper and reasonable.
2. For purposes of sub-section (1), the licensee has to prepare a list of the rates of service charge, based on the directives issued by the Authority and submit the list, also mentioning the day of its commencement, to the Authority for approval, at least three months in advance thereof.
3. The licensee shall not unduly discriminate in respect of the service charge of the telecommunications service rendered by him and other terms and conditions or give undue priority to any person including himself or cause undue loss or damage to any person.
Power to close service:
The licensee may clsoe the telecommunications service provided to the customers in the following circumstances:-
1. If it is required to examine, repair and improve or extend the telecommunications line or the telecommunications system or to do any other important work on it,
2. If any customer fails to pay the charge payable by him, in the case of such customer,
3. If any customer uses the service unauthoritatively or contrary to the terms, in the case of such customer,
4. If there occurs any event such as natural calamity or strike, lock out, riot or similar other extraordinary event beyond control.
Chapter 9 --- Fund, Account and Audit of the Authority
Fund of Authority:
1. The Authority shall have a separate fund of its own; and the fund shall consist of the following amounts:-
  1. Amounts received from His Majesty's Government.
  2. Amounts received for the license fee and for the renewal of, amendment to, sale or transfer of, the license.
  3. Amounts received as grants from foreign governments or organizations.
  4. Amounts received from any other sources.
2. The Authority has to obtain approval of His Majesty's Government before receiving the amounts referred toin clause (c) of sub-section (1).
3. Amounts in the fund of the Authority shall be deposited in an account opened with any bank within the Kingdom of Nepal, and such account shall be operated as specified by the Authority.
Budget and expenditure:
1. The Authority shall cause its budget to be prepared in each fiscal year and approve it, for the performance of its functions pursuant to this Act.
2. All expenditures of the Authority shall be chargeable on its fund, subject to the budget approved pursuant to sub-section (1).
3. If the amount received each year by the Authority pursuant to clauses (b), (c) and (d) of sub-section (1) of Section 44 becomes insufficient to perform the functions pursuant to this Act, the Authority may request His Majesty's Government for the shortfall amount; and if the amount so provided by His Majesty's Government is overplus, the Authority has to pay such overplus amount to His Majesty's Government.
Account of Authority and audit:
1. The accounts of income and expenditure of the Authority shall be maintained in accordance with the laws in force.
2. The accounts of the Authority shall be audited by the Auditor General.
3. His Majesty's Government may, if it deems necessary, examine, or cause to be examined, the accounts of the Authority at any time.
Chapter 10 --- Punishment and Appeal
Punishment:
1. If a person violates this Act or the Rules under this Act or fails to uphold any orders or directives given by the Authority, the Authority may punish such a person with a fine of up to fifty thousand rupees; and if any loss or damage has been caused to any one else from such offence, the Authority may get the amount of such damage or loss or compensation as well therefor realized from the offender.
2. If any person operates the telecommunications service without obtaining the license pursuant to this Act or operates the telecommunications service without observing the terms and conditions mentioned in the license, the Authority may punish such person with a fine of up to five hundred thousand rupees and may also cause him to clsoe such act.
3. If any 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 in controversy and impose a fine equivalent to that amount.
4. If any person abuses, threatens or causes unnecessary harassment through the telecommunications service, the Authority may punish such person with a fine of up to twenty five thousand rupees and may also cause him to close such service.
  
  Provided, however, that, before closing the telecommunications service, the Authority has to provide the concerned person with a reasonable opportunity to defend himself.
5. If any person commits any act, with ulterior motive, to cause adverse effect on the telecommunications line, telecommunications system or any other equipment or structure related thereto, disorders them , or other wise cause any loss or damage thereto, or instigates for such act or attempts to do such act, such person may be punished with a fine equal to the amount of loss or damage or with imprisonment for a term not exceeding five years or with both punishments, according to the degree of crime.
Appeal:
A person who is not satisfied with the order issued by the Authority pursuant to sub-sections (1), (2), (3) and (4) of Section 47 may file an appealwith the committee as prescribed no later than 35 days, and the decision made by such committee shall be final in respect of that appeal.

Chapter 11 --- Miscellaneous
Provisions on determination of radio frequency policy:
1. There shall be a radio frequency policy determination committee consisting of the chairman and members as follows, in order to determine the radio frequency related policy and allocate frequencies.
  1. Minister or Ministry of State, for Information and Communication --- Chairman
  2. Secretary, Ministry of Home Affairs --- Member
  3. Secretary, Ministry of Defense --- Member
  4. Secretary, Ministry of Tourism and Civil Aviation --- Member
  5. Secretary, Ministry of Information and Communication --- Member
  6. Chairman, Nepal Telecommunications Authority --- Member
  7. At least Gazetted first class or expert Officer equivalent thereto designated by His Majesty's Government --- Member-Secretary
2. The function, duties and powers of the committee formed pursuant to sub-section (1) shall be as follows:-
  1. To determine the policy relating to radio frequency.
  2. To fix and allocate the radio frequency for various services.
  3. To determine the pricing policy of radio frequency.
  4. To determine the policy for international and multi purpose coordination of radio frequency.
3. Other functions, duties and powers of, and procedures relating to the meeting of, the committee formed pursuant to sub-section (1) shall be as prescribed.
Power to form sub-committee or task force:
1. The Authority may, as per necessary, form any sub-committee or task force in order to smoothly carry out the functions to be carried out by it.
2. The functions, duties and powers and other procedures of the sub-committee or task force formed pursuant to sub-section (1) shall be as prescribed by the Authority.
Oath to be taken:
Before assuming the office, the chairman and members has to take an oath, as mentioned in the Schedule, before the Minister or Minister of State for Information and Communication.
To prepare and enforce manuals:
1. The Authority may prepare and enforce manuals on the following matters:-
  1. Interconnection and use of the telecommunications system developed by the licensee.
  2. Fixation of service charge and other fees which the licensee may levy and realize for the povision of the telecommunications service.
Acts done by Authority not to be invalid:
Any act done or action taken by the Authority shall not be invalid merely because the seat of any member of the Authority falls vacant or there is any error in the formation of the Authority.
Case not to be instituted:
No case shall be instituted in any court in respect of any act or action done or taken in good faith by the Authority or any member or employee of the Authority or any employee or office designated or to whom power has been delegated, by the Authority pursuant to this Act.
Annual Report:
1. The Authority shall, no later than three months of expiration of each fiscal year, submit an annual report, accompanied by a statement of its income and expenditure, to His Majesty's Government on the activities it has carried out during that year.
2. The Authority shall publish the report submitted pursuant to sub-section (1) for information of the general public.
Delegation of authority:
The Authority may, as per necessity, delegate some of the powers conferred on it, pursuant to this Act or the Rules framed under this Act, to the chairman or any sub-committee or task force formed pursuant to Section 50 or any employee of the Authority.
His Majesty's Government to be plaintiff:
His Majesty's Government shall be the plaintiff in the cases referred to in sub-section (5) of Section 47; and such cases shall be deemed to be included in Schedule-1 to the State Cases Act, 2049 (1992).
Liaison with His Majesty's Government:
The Authority shall make liaison with His Majesty's Government through the Ministry of Information and Communication.
Prevailing law to govern:
This Act shall govern the matters contained in this Act and the prevailing law shall govern the other matters.
Power to remove difficulties:
1. If any difficulty arises in the implementation of this Act, His Majesty's Government may, by a notification in the Nepal Gazette, issue necessary orders to remove such difficulty in such a manner that such orders are not inconsistent with the provisions of this Act.
2. Each order issued pursuant to sub-section (1) shall be laid before Parliament as soon as possible.
Power to frame rules:
1. His Majesty's Government may frame necessary Rules in order to implement of the objectives of this Act.
2. Without prejudice to the generality of the powers conferred by sub-section (1), His Majesty's Government may frame rules on the following matters:-
  1. Format of the application to be submitted for the license and matters to be set out therein, format of the license and terms and conditions, license and renewal fee, and royalty.
  2. Format of the application to be submitted for amendment to the license or sale or transfer of the license and matters to be set out therein and the fee payable for it.
  3. Matters to be observed by the licensee while operating the telecommunications service and matters relating to the standards of service to be provided to the customers.
  4. Method and procedure for distribution of frequency.
  5. Other necessary matters.
Powers to make byelaws:
The Authority may, subject to the provisions of this Act and the Rules formed under this Act, make necessary bye-laws.
Repeal and saving:
1. The Telecommunications Act, 2019 (1962) is hereby repealed.
2. All acts and actions done and taken pursuant to the Telecommunications Act, 2019 (1962) before the commencement of this Act shall be deemed to have been done and taken pursuant to this Act.

Schedule
(Related to Section 51)

Oath
I . . . . . . . . . . swear in the name of God/with trust and faith that I will faithfully discharge the duties of the post of chairman / member with allegiance to the Telecommunications Act, 2053 (1997) without fear, favor, affection, ill-will or greed, and that I will not, in any circumstances except in the course of observing the prevailing law, disclose any matter which is known to me in the course of performing my duties.

Signature... ... ... ...

Date:- ... ... ... ... ...

[1] It came into force on 2054.7.18 (Nov. 3, 2000) by a notification published in the Nepal Gazette dated 2054.7.18 (Nov. 3, 1997).

[2] Inserted by the Act Amending Some Nepal Acts Relating to Communications, 2057 (2001).

[3] Amended by the Act Amending Some Nepal Acts Relating to Communication, 2057 (2001).

[4] Deleted by the Act Amending Some Nepal Acts Relating to Communication, 2057 (2001).

[5] Deleted by the Act Amending Some Nepal Acts Relating to Communication, 2057 (2001).

[6] Inserted by the Act Amending Some Nepal Acts Relating to Communications, 2057 (2001).

[7] Inserted by the Act Amending Some Nepal Acts Relating to Communication, 2057 (2001).

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