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Ncell Contributes Rs 1.15 billion to Rural Telecommunication Fund

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Ncell Contributes Rs 1.15 billion to Rural Telecommunication Fund
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November 3: Ncell, the first private sector's mobile service provider of the country, has contributed Rs 1.15 billion to Rural Telecommunication Fund. The company provided the amount to the fund from its total income of the last FY. As per the government's regulation, Ncell contributed 2 percent of its total income to the Fund.

According to the Nepal Telecommunication Authority (NTA), Nell deposited the highest amount to the Fund in the last FY followed by Nepal Telecom. Nepal Telecom has granted Rs 780 million to the Fund. Among the internet service providers, Subisu has deposited the highest amount of Rs 17.6 million. Ncell has been contributing the highest amount to the fund since last 3-4 years as the top mobile service provider of the country.

Based on the amount contributed by Ncell to the fund, Ncell earned Rs 57 billion in the last FY. Similarly, NT earned Rs 39 billion in the last FY. According to the NTA employees, the actual income of the companies will be known after the announcement of their auditor's report by mid-December.

As per the sub-section (4) of section (30) of Telecommunication Act, 2053, NTA will form a fund in order to develop, expand and operation of telecommunication services in rural areas and licensed companies will have to deposit 2 percent of total income earned annually to the fund. The amount accumulated in the fund will be utilised for the development, expansion and operation of telecommunication services through the service providers in the rural areas under the synchronisation of the telecommunication policy of the government.

Based on the amount deposited by Ncell, Nepal Telecom and other internet service providers to the fund, the annual income of the telecommunication sector of the country has passed out Rs 100 billion. However, nearly 30-40 percent income of the sector is contributed by the phone-calls done from foreign countries.

The telecommunication service providers have contributed more than Rs 2.25 billion to the fund in the last FY. The government has been collected billions of revenue from the sector every year. Due to which, Ncell and NT has become the highest taxpayers of the country. Ncell has topped the tax payers list for the last 4 years. 

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