The issues surrounding Smart Telecom, which was dissolved and brought under government ownership last year after failing to renew its license and complete related procedures within the stipulated timeframe, have grown increasingly complex. The Nepal Electricity Authority (NEA) has issued a warning to homeowners who leased their properties for Smart Telecom’s towers to pay long-overdue electricity bills or face action.
In response to the warning, about 100 affected homeowners staged a protest at the NEA central office two weeks ago, claiming they were being treated unfairly. They also visited the nearby Telecommunications Authority to seek a resolution to their grievances.
Smart Telecom’s license was revoked in the first week of Baisakh 2080 BS (April 2023 AD) as it failed to renew it on time. Consequently, the Telecommunications Authority, as per legal provisions, brought Smart Telecom under its jurisdiction. Since then, the Authority has failed to manage the company’s assets or address the concerns of its customers and vendors. Approximately 2.4 million customers have been left in limbo, along with billions of rupees associated with their SIM cards. Moreover, no progress has been made in managing the towers and other temporary structures linked to Smart Telecom. Neither the Telecommunications Authority nor the government has shown initiative in forming the committees required by law for asset management and valuation.
Experts believe this incident highlights the inefficiency in the regulation and management of the telecommunications sector. During last year’s dispute over Ncell’s ownership transfer, the government had directed the Telecommunications Authority to ensure that Ncell would come under government ownership after its license expiration in 2086 BS before granting permission to operate. According to the Authority’s records, the government has been struggling for over 18 months to figure out how to manage Smart Telecom, which had around 2.4 million users when its services ceased. This raises questions about how the government will handle Ncell, which has over 22.4 million users.
Affected homeowners, users, and vendors have formed separate groups to protest against Smart Telecom. Vendors claim that approximately NPR 530 million worth of recharge cards are stuck with the company. Homeowners impacted by the NEA’s warning expressed their concerns to NEA Executive Director Kulman Ghising, stating that unresolved disputes, asset mismanagement, and liabilities of Smart Telecom have put them in a difficult position.
Sandeep Acharya from Chabahil, who rented his rooftop for Smart Telecom’s tower four years ago at NPR 16,000 per month, stopped receiving rent after 18 months. He expressed frustration over being forced to pay outstanding electricity bills for the tower or risk disconnection of his home’s electricity supply. Many affected homeowners have demanded the removal of the towers from their properties for relief.
Kalpana Khadka from Kupondol, who installed a Smart Telecom tower on her roof in 2073 BS (2016 AD), shared her fears about potential accidents caused by the tower due to lack of maintenance or insurance. Additionally, NEA staff have pressured her to pay the electricity bills for the tower, adding to her distress.
Similar issues have been reported by homeowners across Kathmandu Valley, with some receiving electricity bills ranging from NPR 100,000 to 1.2 million. NEA clarified that it had disconnected electricity lines for Smart Telecom after its service suspension but sent bills to homeowners as they were legally responsible for unpaid charges. NEA’s Deputy Executive Director Manoj Silwal stated that per regulations, homeowners must pay minimum charges for up to six months after disconnection.
Despite these challenges, NEA Executive Director Ghising assured the affected parties that no electricity connections would be cut without finding a resolution. He acknowledged that similar issues exist with UTL’s towers and expressed a commitment to finding appropriate solutions.
Currently, Smart Telecom has approximately 317 BTS towers in Kathmandu Valley and 1,700 nationwide. However, no progress has been made on asset management or value assessment committees, which are essential for resolving the company’s liabilities and ensuring the continuity of telecommunication services.
Smart Telecom owes the government around NPR 27 billion in liabilities. Before its dissolution, its ownership structure included 70% held by Lal Sahu Distributor Pvt. Ltd. Singapore, 10% by Gilliat, and 20% by Square Network led by Sachinlal Acharya. Acharya is the brother of Satishlal Acharya, who recently acquired ownership of Ncell.
The Telecommunications Authority has stated that its role is limited in resolving these issues and has urged the affected parties to approach other relevant bodies. Although a management group for handling Smart Telecom’s assets was formed last year, it has yet to hold a single meeting. Similarly, the valuation committee mandated by the regulations has not been established due to difficulties in finding suitable evaluators.