Chapter – 8

Chapter – 8 Miscellaneous
25. Operation of Telecommunication Service in Rural Area:

A Licensee who has obtained License pursuant to Sub-rules (1) and (2) of Rule 10 shall invest Fifteen percent of the total investment in the development, expansion and operation of the telecommunication service in the rural area.

26. Payment of Royalty:

A Licensee who has obtained License pursuant to Sub-rule (5) and (6) of Rule 10 shall pay the royalty in an amount at the rate of Four percent of the total income to Government of Nepal.

Explanation :

For the purpose of these Rules, “total annual income” means an income obtained by the Licensee by providing the
telecommunication service to the consumer except the amount including deposit, service tax, value added tax, other indirect tax and an amount received from the sale of telecommunication equipment.

27. Appellate Committee:

(1) There shall be an Appellate Committee comprising the following members for the purpose of making appeal
pursuant to Section 48 of the Act:
(a) Incumbent Judge of Court of Appeal or Special Class Officer of Nepal Judicial Service – Chairperson
(b) Gazetted First Class Officer or Expert Officer equivalent thereof designated by Government of Nepal – Member
(c) A person designated by Government of Nepal from amongst the officer level employees who has 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.
(3) The procedures and other provisions relating to the 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) The Committee meetings shall be conveyed on such date, in such time and such place as determined by the Chairperson of the Committee.
(2) If more than Fifty percent members are present out of the total members of the Committee a quorum shall constitute for the meetings.
(3) The Chairperson of the Committee shall preside over the meetings of the Committee and in his/her absence the member selected from amongst the present members shall preside over the meeting.
(4) The majority opinion shall prevail on the meetings of the Committee and the person who presides over the meeting shall cast a casting vote in case of tie.
(5) The secretary of the Committee shall maintain the decisions of the meeting of the Committee authenticated by the Chairperson.
(6) The other procedures relating to the meetings of the Committee shall be as determined by the Committee itself.

29. Modes and Procedures of Fixing and Allocating / Distributing
Radio Frequency:

(1) The Committee shall, subject to the frequency allocated by the International Telecommunication Union (I.T.U.), fix and allocate radio frequency for different services.
(2) The Authority shall, subject to the frequency fixed and allocated by the Committee pursuant to Sub-rule (1), carry out the act of prescribing and distributing the frequency to be used for the telecommunication service.

30. Prescription of Terms and While Distributing Frequency:

(1) The Authority shall prescribe the terms and conditions to be observed by the Licensee while using the frequency in operating the telecommunication service.
(2) The Authority shall have the powers to inquiry or monitor as to whether or not the Licensee has used the frequency in consonance with the terms and conditions as prescribed pursuant to Sub-rule (1).
(3) If it appears that the Licensee has not used the frequency in consonance with the terms and conditions upon conducting inquiry or monitoring pursuant to Sub-rule (2), the Authority shall provide a appropriate period as well as an opportunity to the Licensee to use the frequency in accordance with the terms and conditions. If the Licensee
fails to use the frequency in consonance with the terms and conditions in such provided period, the Authority may prohibit the frequency to be used.

31. Payment of Fees:

(1) The Licensee shall pay fees as prescribed by the Committee to the Authority, while using the frequency in connection with the operation of the telecommunication service.
(2) The Authority shall deposit the fees as received pursuant to Sub-rule (1) to Government of Nepal.

32. Function of International and Multi-Purpose Coordination of Radio Frequency:

It shall be the function of the Ministry to make coordination with the international and multipurpose coordination of
radio frequency formulated by the Committee.

33. Submission of Annual Report:

The Licensee shall submit a description of the telecommunication service and the details of incomes and expenses audited by a recognized auditor to the Authority within Three months of the expiry of each fiscal year.

34. Maintenance of Up-to-date Record:

The Licensee shall prepare and maintain the records on the telecommunication service as provided to
the customer in an up dated manner and shall show the said records if the Inspector so requires in the course of inspection or inquiry.

34A. Matters relating to the Financial Administration:

The matters relating to the Financial Administration of the Authority shall be as prescribed in the concerned Bye-laws framed by the Authority.

35. Alter in Schedule: Government of Nepal may alter the Schedule on the recommendation of the Authority as per necessity.

36. Repeal and Saving:

(1) The following Rules are, hereby, repealed:-
(a) Local Telephone Rules, 2022 (1965).
(b) Telephone Communications (In-land) Rules, 2023 (1966).
(c) Telecommunication (International) Rules, 2024 (1967).
(2) The acts performed and actions carried out under the Rules referred to in Sub-rule (1) shall be deemed to have been performed and carried out pursuant to these Rules.