Ncell Completes Two Decades in Nepal, Pays Rs 360 Billion in Taxes While Serving Nearly 14 Million Users

Kathmandu: Ncell has completed 20 years of service in Nepal. Established in 2004, the company launched operations in 2005, when mobile penetration in the country was limited to just 6 percent.

Today, Ncell serves about 14 million customers, and mobile penetration has crossed 100 percent.

The company began as Mero Mobile in 2004 and was acquired by Sweden’s Telia four years later. In 2010, it rebranded as Ncell. On April 12, 2016, Ncell joined the Axiata Group. Most recently, on December 1, 2023, the UK-based Spectrlite UK Limited acquired 80 percent of Ncell’s shares after taking full ownership of Reynolds Holdings.

Ncell has been providing 4G services in Nepal since 2017 using GSM, EDGE, 3G/HSPA+, and DC-HSDPA technologies. The company claims 4G has driven growth in e-commerce, telemedicine, and mobile banking. Currently, its 4G network covers 95 percent of the country.

By fiscal year 2024/25, Ncell has paid Rs 360 billion in taxes under various categories. Of this, Rs 47 billion was paid in capital gains tax during the 2016 ownership transfer. The company also claims to have created more than 100,000 direct and indirect jobs across Nepal.

As part of its corporate social responsibility, Ncell has invested over Rs 2 billion in health, education, and environmental protection. Initiatives include maintaining greenery in the Kathmandu Ring Road and building modern IT labs in more than 60 schools. Recently, it established the Ncell Foundation to support social and economic transformation projects.

Despite these contributions, Ncell reports a 25 percent revenue decline over the past five years. In the same period, telecom revenues in Bangladesh and Sri Lanka have grown by 40 percent. In Nepal, average monthly data consumption per subscriber is just 6 GB, compared to 20 GB in India.

Ncell’s contribution to Nepal’s GDP, along with Nepal Telecom, has dropped from 5 percent to 2 percent. The telecom industry, once valued at Rs 1 trillion, has now shrunk to less than Rs 75 billion.

Because of the revenue decline, capital expenditure in the telecom sector is now three times higher than net profit. As a result, Ncell says it has halted investment in new technology. An estimated Rs 60 billion would be required to launch 5G in Nepal, 12 times the company’s current profit, making an immediate rollout unrealistic.

In this context, Ncell has called for amendments to the Telecommunications Act and the introduction of new laws. The company has also urged a review of the Rs 20 billion renewal fee, which it says is too high.

 

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