Internet Service Provider Should Mainitan Paid Up Capital Of Rs 40 Million

July 30, 2020 | Investopaper

From now on, those who want to operate internet service business will have to maintain a paid up capital of Rs 40 million. Nepal Telecommunication Authority (NTA) has issued Regulation 2077 on the operation of internet (including email) and the person who wants to operate the service has to submit the details of having net worth of Rs 40 million after being certified by a Chartered Accountant.

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NTA has repealed the special directive on internet and email service operation and issued new regulations from the current fiscal year. According to the new provision, the applicant will have to submit the projected details of the estimated capital under the business plan, proposed total investment, source of investment, operating expenses, total estimated income from the year of service to 5 years, total estimated expenses and total estimated profit and loss.

Other Requirements

Anyone wishing to operate an Internet service business must submit an estimated number of regional customers over the next five years. The marketing aspect of the business plan should also be disclosed. Customers will have to be projected in the areas where the service will be operated.

The level of the equipment used to operate the service, model number, name of the manufacturer, details of the country of manufacture and the place where the equipment will be connected should be disclosed. NTA has made such provision after the service providers started cheating the customers by operating low quality services.

The internet service company should get approval from the authority for the type and rate of various charges to be taken from the customer for providing the service. Details of such charges should be made public. NTA has included this in the regulations after the service providers charged service fee voluntarily.

The chief executive to be appointed to the company operating the internet service business should have at least 7 years of business experience. The manpower involved in the operation of the proposed telecommunication service, the details including the structure of the organization will have to be submitted to the authority.


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