Chapter – 3

Chapter – 3 Provisions relation to License
7. Application to be submitted for License:

(1) A person having capital, technical expertise and occupational competency as referred to  in Rule 8 and desiring to operate the telecommunication service pursuant to Sub-section (1) of Section 23 of the Act, shall, within the
time-limit set forth in a public notice published by the Authority pursuant to Sub-section (1) of Section 22 of the Act, shall submit an application also setting out the matters referred to in the notice, to the Authority, accompanied thereby the financial and technical study report on the telecommunication service which he/she desires to operate and operation plan, in a format referred to in Schedule-1.
(2) Notwithstanding anything contained in Sub-rule (1), an application may be submitted at any time to the Authority in a format referred to in Schedule – 1 in order to obtain a License to operate telecommunication service prescribed by Government of Nepal by publishing a notice in the Nepal Gazette pursuant to Sub-section (2) of
Section 23 of the Act.
(3) A person who is operating the telecommunication service by obtaining a License from Government of Nepal prior to the commencement of the Act pursuant to Sub-section (3) of Section 23 of the Act shall, in order to obtain the License, submit an application to the Authority in a format referred to in Schedule-2 within Six months of
the date of commencement of the Act.

8. Capital, Technical Competency and Professional Efficiency Required to Obtain License: There shall have to be such capital, technical competency and professional efficiency as prescribed in Schedule -3 in order to obtain License pursuant to Sub-rule (1) of Rule 7.

9. Matters to be Set Out in Financial and Technical Study Report and Operation Plan:

The applicant shall mandatorily set out, inter alia, the following matters in the financial and technical study report
and operation plan required to be submitted pursuant to Sub-rule (1) of Rule 7:
(a) Amount required to operate the telecommunication service,
(b) Investment capacity,
(c) Telecommunication system, its quality standards and capacity, to be used for the telecommunication
service,
(d) If the land is to be acquired while operating the telecommunication service, that matter, and if
compensation (muwabja) is to be provided, the amount of compensation,
(e) If any agreement it to be made with any person or organisation, the matters of the agreement,
(f) Mode of operation of the telecommunication service,
(g) Amount of fees to be collected from the customers for the operation of the telecommunication service,
(h) Other necessary matters prescribed by the Authority.

10. Issuance of License:

(1) If an application is submitted for the License pursuant to Sub-rule (1) of Rule 7, the Authority shall examine the
application and the documents accompanied with the application, and if  only a person is found to be eligible to operate such telecommunication service while so examining, the Authority shall have to determine the License fee, renewal fee and royalty by negotiations with such person and issue License to the applicant in a format referred to in Schedule -4.
(2) If, while conducting examination pursuant to Sub-rule (1), more than one person having submitted application are found to be eligible to operate such telecommunication service, the Authority shall give all of those persons a notice to make bids on License fee, renewal fee and royalty, and issue License to the person who makes the highest
bid in such bidding pursuant to Sub-rule (1).
(3) The Authority shall, while issuing License pursuant to Sub- rule (2), have to issue License to the person who undertakes to pay the highest amount in calculating the License fee which the applicant undertakes to pay, the fee payable for the first renewal of the License 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 set forth in the notice published by the Authority pursuant to Sub-section (1) of Section 22 of the Act.
(5) If an application is submitted for License pursuant to Sub- rule (2) of Rule 7, the Authority shall make an inquiry of the application and the documents accompanied with the application,and if it deems appropriate upon making inquiry to issue a License to such person shall issue the License pursuant to Sub-rule (1).
(6) If any application is submitted for License pursuant to Sub- rule (3) of Rule 7, the Authority shall conduct necessary examination in that regard and issue License to the applicant in a format as 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 Fees:

(1) The License fees to be charged for the License to be issued pursuant to Sub-rules (5) and (6) of Rule 10 shall be as follows:
(a) The fees as prescribed in Schedule-6, for the License to be issued pursuant to Sub-rule (5) of Rule 10,
(b) The fees as prescribed in Schedule-6(a), for the License to be issued pursuant to Sub-rule (6) of Rule
10.  (2) The Licensee shall pay the License fee pursuant to these Rules either in lump sum or on an installment basis as prescribed by the Authority, within the period of the License.