The Telecommunications Regulation, 2054 (1997)

Amendment:
The Telecommunications (First Amendment)
Regulation, 2055 (1999)	2055.11.17 (March 1, 1999)
The Telecommunications (Second Amendment)
Regulation, 2058 (2002)	2058.12.14 (March 27, 2002)

In exercise of the powers conferred by Section 61 of the Telecommunications Act, 2053 (1996), His Majesty's Government has made the following Rules.

1. Short Title and Commencement:
   
   
   1. These Rules may be cited as the "Telecommunications Regulation, 2054 (1997)".
      
      
   2. This Regulation shall come into force at once.
      
      
2. Definitions:
   
   Unless the subject or the context otherwise requires, in this Regulation,-
   
   
   1. "Act" means the Telecommunication Act, 2053 (1996).
      
      
   2. "Inspector" means the person or body designated by the Authority to carry out inspection and investigation pursuant to sub-section (2) of Section 17 of the Act.
      
      
   3. "Committee" means the radio frequency policy determination committee as referred to in Section 49 of the Act.
      
      
   4. "Ministry" means the Ministry of Information and Communication, His Majesty's Government.
      
      

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   Chapter - 2
   Provisions relating to qualifications of chairman and member
   
   
   
3. Qualifications of chairman and member:
   In order to be the chairman and member of the Authority, one has to be a Nepalese citizen who, having hold at least a bachelor's degree from a recognised institution in the field as referred to in sub-section (1) of Section 5 of the Act, has gained at least ten years of experience and at least seven years of experience in the concerned field in the case of chairman and member, respectively.
   
   
4. Functions, duties and powers of chairman:
   The functions, duties and powers of the chairman shall be as follows:
   
   
   1. To act as the administrative chief of the Authority,
      
      
   2. To formulate, or cause to be formulated, annual plans and programs of the Authority and present them at the meeting of the Authority,
      
      
   3. To look after and control the funds of the Authority,
      
      
   4. To take care of, and maintain, or cause to be taken care of, and maintained, the properties of the Authority,
      
      
   5. To act as a liaison officer between the Authority and His Majesty's Government and other organisations,
      
      
   6. To perform, or cause to be performed, such other functions as delegated by the Authority pursuant to the Act or this Regulation.
      
      
5. Remuneration, facilities and other terms of service of chairman:
   The remuneration, facilities and other terms of service of the chairman shall be as prescribed by the Act or the byelaw to be framed under this Regulation; and his remuneration, facilities and other terms of his service shall be as prescribed by His Majesty's Government, pending such a byelaw.
   
   
6. Meeting allowance:
   The chairman and members shall, for taking part in each meeting of the Authority, the meeting allowance in such a sum as prescribed by the Ministry.
   
   

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   Chapter - 3
   Provisions relating to license
   
   
   
7. Application to be submitted for license:
   
   
   1. Any person who intends to operate the telecommunications service pursuant to sub-section (1) of Section 23 of the Act and has the capital, technical expertise and professional competency as referred to in Rule 8 has to submit to the Authority an application, in the format as referrd to in Schedule-1, accompanied by a financial and technical study report on the telecommunications service which he intends to operate and a plan of operations, and also setting out the matters mentioned in a public notice published by the Authority pursuant to sub-section (1) of Section 22 of the Act, within the time-limit mentioned in that public notice.
      
      
   2. Notwithstanding anything contained in sub-rule (1), any person may, at any time, submit an application to the Authority in the format as referred to in Schedule-1 in order to obtain the license to operate the telecommunications service prescribed by His Majesty's Government by a notification in the Nepal Gazette pursuant to sub-section (2) of Section 23 of the Act.
      
      
   3. Any person who has been operating the telecommunications service by obtaining the license from His Majesty's Government prior to the commencement of the Act pursuant to sub-section (3) of Section 23 of the Act has to submit an application to the Authority, in the format referred to in Schedule-2, no later than six months from the date of commencement of the Act, in order to obtain the license.
      
      
8. Capital, technical expertise and professional competency required to obtain license:
   One shall have the capital, technical expertise and professional competency as prescribed in Schedule -3 order to obtain the license pursuant to sub-rule (1) of Rule 7.
   
   
9. Matters to be set out in financial and technical study seport and plan of operations:
   The applicant has to mandatorily set out, inter alia, the following matters in the financial and technical study report and plan of operations required to be submitted pursuant to sub-rule (1) of Rule 7:-
   
   
   Amount required to operate the telecommunication service,
   
   Investment capacity,
   
   The telecommunications system, its quality standards and capacity to be used for the telecommunications service,
   
   If any land is to be acquired while operating the telecommunications service, that matter, and if compensation is to be provided, amount of compensation,
   
   If any agreement is to be made with any person or organisation, the matters of agreement,
   
   Mode of operation of the telecommunications service,
   
   Amount of fees to be collected from the customers for the operation of the telecommunications service,
   
   Such other necessary matters as prescribed by the Authority.
   
   
10. Issuance of license:
    
    
    1. If any application is submitted for the license pursuant to sub-rule (1) of Rule 7, the Authority has to examine the application and documents accompanied by it, and if, upon such examination, only one person is found qualified to operate such telecommunications service, the Authority has to fix the license fee, renewal fee as well as royalty by holding negotiations with such a person and issue the license to the applicant, in the format referred to in Schedule -4.
       
       
    2. If, upon examination pursuant to sub-section (1), more than one persons making application are found qualified to operate such telecommunications service, the Authority has to give a notice to all of those persons to make a bid on the license fee, renewal fee as well as royalty and issue the license to the person who makes the highest bid in such bidding, pursuant to sub-rule (1).
       
       
    3. While issuing license pursuant to sub-rule (2), the Authority has to grant license to the person who makes a bid to pay the highest amount of the license fee which the applicant undertakes to pay, the fee payable for renewal of the license for the first time and the royalty undertaken to be paid during the period of the license.
       
       
    4. The license fee, license renewal fee and minimum amount of royalty required to be undertaken for the license to be issued pursuant to sub-rules (1) and (2) shall be as mentioned in the notice published by the Authority pursuant to sub-section (1) of Section 22 of the Act.
       
       
    5. If any application is submitted for the license pursuant to sub-rule (2) of Rule 7, the Authority has to examine the application and the documents accompanied by it, and issue the license to the applicant pursuant to sub-rule (1) if, upon such examination, it appears proper to issue the license.[2]
       
       
    6. If any application is submitted for the license pursuant to sub-rule (3) of Rule 7, the Authority has to hold necessary examination in that regard and issue the license to the applicant in the format referred to in Schedule-5.
       
       
    7. Other procedures to be followed while issuing the license pursuant to this Rule shall be as prescribed by the Authority.
       
       
11. License fee:
    
    The license fee for the license to be issued pursuant to sub-rules (5) and (6) of Rule 10 shall be as follows:-
    1. The fees as prescribed in Schedule-6, for the license to be issued pursuant to sub-rule (5) of Rule 10,
       
       
    2. The fees as prescribed in Schedule-6, for the license to be issued pursuant to sub-rule (6) of Rule 10.
       
       
    3. The licensee has to pay for the license fee required to be paid him under this Regulation in lump sum or on installment basis as prescribed by the Authority.
       
       

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    Chapter - 4
    Renewal, amendment and transfer of license
    
    
    
12. Period and renewal of license:
    
    
    1. [5] The period of license shall, subject to sub-section (1) of Section 25 of the Act, be as follows:-
       
       
       1. The period of license to be issued pursuant to sub-rule (5) of Rule 10 shall be five years,
          
          
       2. The period of license to be issued pursuant to sub-rules (1), (2) and (3) of Rule 10 shall be as prescribed in the license.
          
          
    2. [6] If the licensee intends to renew the license obtained by him, he has to submit an application to the Authority, accompanied by the renewal fee which he has undertaken for the license obtained pursuant to sub-rules (1) and (2) of Rule 10, and by the renewal fee as prescribed in Schedule -7 for the renewal of the license obtained pursuant to sub-rules (5) and (6) of Rule 10, no later than six months prior to the expiry of the period of license.
       
       
    3. If any licensee who does not get the license renewed within the time limit referred to in sub-rule (2) submits an application, setting out reasonable reasons for his failure to get the license renewed, to the Authority for the renewal of the license, and if the reasons are found reasonable, the Authority may renew the license, upon collecting an additional fee by twenty-five percent, fifty percent and cent percent of the renewal fee for up to one month, three months and six months, respectively.
       
       
    4. If any licensee fails to get the license renewed even within the time limit referred to in sub-rule (3), such license shall not be renewed.
       
       
13. Amendment to license:
    
    
    1. If a licensee deems it necessary to amend any matter mentioned in the license, he has to submit an application to the Authority, in the format as referred to in Schedule-8, setting out the reasons for such amendment.
       
       
    2. If any application is submitted pursuant to sub-rule (1), the Authority shall make necessary examination on that matter and if, upon such examination, the reasons given for amendment to the license are found reasonable and proper and such amendment does not affect the substantial matters of the license, amend the license by collecting a fee of fifteen thousand rupees.
       
       
14. Sale or transfer of license:
    
    
    1. Any person who desires to sell or receive the licensee by selling or otherwise transferring the title to the license pursuant to Section 27 of the Act has to submit a joint application, accompanied by the mutually specified terms thereon, to the Authority in the format referred to in Schedule -9, for approval.
       
       
    2. If any application is submitted pursuant to sub-rule (1), the Authority shall make necessary inquiry into the matter, and if, upon making such inquiry, if it deems necessary to obtain additional information, it may demand additional information or details from the persons who have submitted such application.
       
       
    3. If, based on the application submitted under sub-section (1) and the documents attached with the application as well as the additional information or details demanded under sub-rule (2), the Authority thinks it proper to have the license sold or title to it transferred in any other manner, it has to give approval for the sale of the license or otherwise transfer of the title to it, by collecting a sum to be set by five percent of the license fee.
       
       

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    Chapter - 5
    Terms to be observed by licensee
    
    
    
15. Terms to be observed by licensee:
    
    
    1. The licensee has to observe the following terms, in addition to the terms set forth in the Act and this Regulation:-
       
       
       1. To provide the telecommunications service to the customers by using machines and equipment rlating to telecommunications of such quality standards as fixed by the Authority.
          
          
       2. To operate the telecommunications service in accordance with the minimum standards prescribed by the Authority from time to time.
          
          
       3. Not to use the machines and equipment relating to telecommunications installed by another licensee without the consent of such a licensee.
          
          
       4. Not to distribute telecommunications lines through electric poles as far as possible, and even if the lines are to be so distributed, to distribute them only obtaining approval of the concerned body and in such a manner that it is safe from electricity.
          
          
       5. ....[7]
          
          
       6. To provide the telecommunications service in conformity with the agreement made with the customer, while distributing the telecommunications service to the customer.
          
          
       7. To operate the telecommunications service only by using the frequency prescribed in the license for the telecommunications service in which frequency is used.
          
          
       8. If the telecommunications service provided to the customer is out of order due to any reason, to repair and maintain it free of cost in conformity with the standards prescribed by the Authority.
          
          
       9. To publish materials on telecommunications, including telephone directory, for the convenience and information of the customers.
          
          
       10. To so operate the telecommunications service that it is in conformity with the minimum standards prescribed by the International Telecommunications Union (I.T.U.) regarding the operation of the telecommunications service.
           
           
    2. Terms, other than those set forth in sub-rule (1), required to be observed by the licensee in operating the telecommunications service shall be as prescribed in the license.
       
       

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    Chapter - 6
    Inspection, report and implementation
    
    
16. Powers to have inspection or inquiry:
    The Authority may, if it deems necessary, make, or cause to be made, inspection or inquiry as to the acts and actions carried out by the licensee or the telecommunications service provided by him.
    
    
17. Procedures to be followed while making inspection or inquiry:
    (1) While making inspection or inquiry as to the activities carried out by the licensee or the telecommunications service provided by him pursuant to the Act or this Regulation, the Inspector has to make inspection or inquiry as to the following matters subject to the law in force, except in cases where the Authority issues an order to make inspection or inquiry on any matter specified by it:-
    
    
    1. Whether the licensee has operated the telecommunications service by using such machines and equipment relating to telecommunications conforming to such quality standards as fixed by the Authority or not,
       
       
    2. Whether the telecommunications service has been operated in conformity with the minimum quality standards prescribed by the Authority or not,
       
       
    3. Whether the licensee has collected the service charge as approved by the Authority or not,
       
       
    4. Whether the licensee has carried out activities in conformity with the terms to be observed under the Act or this Regulation or not.
       
       
18. Powers of inspector:
    The inspector shall have the following powers, in the course of inspection or inquiry pursuant to Rule 17:-
    
    
    1. To enter the place where the telecommunications system is used,
       
       
    2. To demand any details or information from the licensee,
       
       
    3. To examine the quality standards of the telecommunications service provided by the licensee to the customers and of the telecommunications system used in operating such service,
       
       
    4. To take statements from anyone who-so-ever involved in the operation of the telecommunications service,
       
       
    5. If, while making inspection or inquiry, it appears appropriate to immediately give any order to the license, in respect of the operation of telecommunications service, to give such an order,
       
       
    6. To perform other necessary functions in respect of inspection or inquiry.
       
       
    18A.[8] To give information to Authority:If the inspector gives any order to the licensee pursuant to clause (e) of Rule 18[9], he has to give information thereof to the Authority no later than three days.
    
    
19. To carry out order of inspector:
    
    
    1. If the inspector gives any order to the licensee in the course of inspection or inquiry pursuant to Rule 17, it shall be the duty of the concerned licensee to carry out acts as per that order.
       
       
    2. Any person who is not satisfied with the order given by the inspector pursuant to sub-rule (1) may file a complaint with the Authority within thirty days; and any decision made by the Authority in regard to the complaint shall be final.
       
       
20. To submit report:
    
    
    1. After making inspection or inquiry pursuant to Rule 17, the inspector has to submit a detailed report on insection or inquiry to the Authority within ten days.[10]
       
       
    2. The report to be submitted pursuant to sub-rule (1) has to set out, inter alia, the following matters:-
       
       
       1. The matter inspected or inquired in regard to the activities carried out by the licensee or the telecommunications service provided by him,
          
          
       2. If any technical test has been conducted in the course of inspection or inquiry, the matter as to which telecommunications system has been tested,
          
          
       3. Separate details as to whether the licensee has observed the terms to be observed under the Act or this Regulations or not,
          
          
       4. If the licensee has not observed any terms, the matter as to the reasons why he has not so observed,
          
          
       5. If, in the course of inspection or inquiry, an order has been given to the licensee to immediately carry out any act, the matter on which the order has been given and reasons therefor.
          
          
21. Implementation of report:
    
    
    1. The Authority shall, upon receipt of the report as referred to in Rule 20, hold necessary inquiry in that regard; and if it appears necessary to obtain additional information while so holding inquiry, the Authority may order the concerned licensee to submit details or documents, require the licensee to appear before it and record his statement or do such other acts as it may deem proper.
       
       
    2. If, while holding inquiry pursuant to sub-rule (1), the Authority deems it proper to give any order to the licensee in regard to the activities carried out by the licensee or the telecommunications service provided by him, it shall give a reasonable period of time to carry out acts in conformity therewith; and it shall be the duty of the concerned licensee to carry out acts in conformity with the order so given in due course of time.
       
       

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    Chapter - 7
    Dispute relating to telecommunications and settlement thereof
    
    
22. Filing of complaint with Authority:
    If there arises any dispute in respect of the telecommunications service between the licensees or between the licensee and the customer, the party aggrived therefrom may file with the Authority a complaint also setting out reasons therefor.
    
    
23. Procedures to be followed in the event of dispute between licensees:
    
    
    1. If there arises a dispute between the licensees in respect of the telecommunications service and a complaint is filed with the Authority pursuant to Rule 22, the Authority has to require the concerned licensees to make presence and settle the dispute through mutual discussions.
       
       
    2. If the dispute is not settled through mutual discussions pursuant to sub-rule (1), the Authority has to appoint an arbitral tribunal comprising one representative of each licensee and one representative of the Authority, for that purpose.
       
       
    3. The tribunal appointed pursuant to sub-rule (2) shall itself make its rules of procedures for the settlement of dispute.
       
       
    4. The tribunal appointed pursuant to sub-rule (2) has to make its decision on the settlement of dispute within fifteen days.
       
       
    5. The decision made by the tribunal pursuant to sub-rule (4) shall be binding on the concerned licensees.
       
       
24. Procedures to be followed in the event of dispute between licensee and customer:
    
    
    1. If there arises a dispute between the licensee and the customer in respect of the telecommunications service and a complaint is filed with the Authority pursuant to Rule 22, the Authority has to require the concerned licensee and the customer to make presence, and settle the dispute through discussions with both parties.
       
       
    2. If the dispute is not settled through mutual discussions pursuant to sub-rule (1), the Authority may give such order as it may deem appropriate to the concerned licensee or the customer, and it shall be the duty of the concerned licensee or the customer to act in conformity with that order.
       
       

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    Chapter - 8
    Miscellaneous
    
    
    
25. Operation of telecommunications service in rural area:
    A licensee, who has obtained license pursuant to sub-rules (1) and (2) of Rule 10, has to utilize fifteen percent of the his total investment in the development, expansion and operation of the telecommunications service in the rural area.
    
    
26. Payment of royalty:
    (1) A licensee, who has obtained license pursuant to sub-rules (5) and (6) of Rule 10, has to pay a royalty in a sum to be set by four percent of his annual total income to His Majesty's Government each year.
    
    Explanation:[11] For purposes of this Rule, "annual total income" means an income earned by the licensee for having provided the telecommunications service, except the deposit, service charge, value added tax as well as other indirect taxes collected by the licensee from the customers and the amounts to be received from the sale of equipment relating to telecommunications.
    
    
27. Appellate committee:
    
    
    1. For purposes of making appeals pursuant to Section 48 of the Act, there shall be an appellate committee comprising the following members:-
       
       

       a)	Incumbent judge of the Appellate Court or special class officer of Nepal Judicial Service	Chairman
       b)	Expert officer of Gazetted first class or equivalent thereto designated by His Majesty's Government	Member
       c)	Person designated by His Majesty's Government from amongst officer employees having gained experience in the field of law	Member

    
    
    2. The officer employee designated by the Ministry shall act as the secretary of the appellate committee.
       
       
       
       The procedures and other provisions relating to meetings of the committee referred to in sub-rule (1) shall be as determined by the committee itself.
       
       
28. Procedures relating to meetings of committee:
    
    
    1. Meetings of the committee shall be held on such date, in such time and place as may be appointed by its chairman.
       
       
    2. The presence of more than fifty percent members of the total number of members of the committee shall be deemed to constitute a quorum for the meeting.
       
       
    3. The chairman of the committee shall preside over the meeting of the committee; and in his absence, the member selected by the members of the committee from amongst themselves shall preside over the meeting.
       
       
    4. The opinion of the majority shall prevail at the meeting of the committee, and in the event of a tie, the person presiding over the meeting may exercise the casting vote.
       
       
    5. The secretary of the committee shall get the decisions of the committee meetings authenticated by the chairman and maintain them in an updated manner.
       
       
    6. Other procedures relating to the meetings of the committee shall be as determined by the committee on its own.
       
       
29. Mode and procedures of fixation and allocation radio frequency:
    
    
    1. The committee shall, subject to the frequencies allocated by the International Telecommunications Union (I.T.U.), fix and allocate radio frequencies for various services.
       
       
    2. The Authority shall, subject to the frequencies fixed and allocated by the committee pursuant to sub-rule (2),[12] prescribe and distribute frequencies to be used for the telecommunications service.
       
       
30. Prescription of terms while distributing frequency:
    
    
    1. (1) The Authority shall prescribe the terms to be observed by the licensee while using the frequency in operating the telecommunications service.
       
       
    2. The Authority shall have the powers to inquire or monitor as to whether the licensee has used the frequency in consonance with the terms prescribed under sub-rule (1) or not.
       
       
    3. If, while inquiring or monitoring pursuant to sub-rule (2), it appears that the licensee has not used the frequency in consonance with the terms, the Authority shall provide a reasonable period of time as well as an opportunity to the licensee to use the frequency in accordance with the terms. If the licensee fails to use the frequency in consonance with the terms even within the period of time so provided, the Authority may restrict the frequency used by him.
       
       
31. Payment of fees:
    
    
    1. The licensee has to pay to the Authority such fees as prescribed by the committee, on the use of frequency in connection with the operation of telecommunications service.
       
       
    2. The Authority has to pay the fees received under sub-rule (1) to His Majesty's Government.
       
       
32. International and multi-purpose coordination of radio frequency:
    It shall be the function of the Ministry to make coordination in consonance with the policy on international and multipurpose coordination of radio frequency formulated by the committee.
    
    
33. Submission of annual report:
    The licensee has to submit a description of the telecommunications service operated by him and statements of his incomes and expenses audited by a recognized auditor to the Authority within three months of expiration of each fiscal year.
    
    
34. Maintenance of up-to-date records:
    The licensee has to prepare and update records of the telecommunications service provided by him to the customers and show them to the inspector if the inspector intends to examine them in the course of inspection or inquiry.
    
    
35. Power to make alteration and change in Schedule:
    His Majesty's Government may, on recommendation of the Authority, make alteration or change, as required, in the Schedule.
    
    
36. Repeal and saving:
    
    
    1. The following Rules are hereby repealed:-
       
       
       1. The Local Telephone Regulation, 2022 (1965).
       2. The Telephone Communications (In-land) Regulation, 2023 (1966).
       3. The Telecommunications (International) Regulation, 2024 (1967).
          
       
       
    2. The acts performed and actions taken under the Regulations as referred to in sub-rule (1) shall be deemed to have been performed and taken under this Regulation.

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