With an outstanding capital gains tax (CGT) of billions, the lawmakers of Nepal have discussed the pros and cons of why Ncell should not be allowed to roll out 4G services in Nepal. They have come to an understanding that they will not allow 4G services to Ncell owned by Axiata Group until it clears the outstanding CGT to the Nepal Government.
Last December 2015, Ncell’s major shares were taken over by Malaysian Telecom company Axiata for US$1.365 billion. The takeover drew immense criticism as Ncell did not pay CGT as required by the law. Malaysia-based  Axiata finalised its acquisition from TeliaSonera and Reynolds. The deal effectively secured Axiata an 80 percent equity interest and full control over Ncell.
It is estimated that Ncell has an outstanding CGT of NRs 23 billion to Nepal Government. The Nepal Telecommunications Authority (NTA) rolled out 4G plan for Ncell in the last week of October last year. The Nepal Telecom (NT) has already started its soft launch of 4G service in Nepal after obtaining the licence from NTA.
Axiata Group is one of the largest Asian telecommunication companies, Axiata today operates in ten countries, servicing approximately 290 million subscribers. With a diverse portfolio in mobile network operations, communications infrastructure services and digital services, the Group pieces together the best in connectivity, technology and people in its vision of Advancing Asia.
Axiata has controlling stakes in market leading mobile operators in South East Asia and South Asia. Axiata Group of companies operate under the brand name of ‘Celcom’ in Malaysia, ‘XL’ in Indonesia, ‘Dialog’ in Sri Lanka, ‘Robi’ in Bangladesh, ‘Smart’ in Cambodia and ‘Ncell’ in Nepal. Further to this, the Group also holds strategic interests in ‘Idea’ in India and ‘M1’ in Singapore.
