NTA regulations and charging plan

Regulations of Nepal Telecommunications Authority

NTA was set up under the Telecommunications Act, 2053 (1997) and works under the Telecommunications Regulation, 2054 (1997). The main regulatory functions and provisions are:

1. Licensing: licences for basic telephone, mobile, internet, VSAT, rural and other services; renewal and conditions; penalties for operating without a licence.
2. Frequency (spectrum) regulation: assigning and monitoring radio frequencies in coordination with the Radio Frequency Policy Determination Committee.
3. Tariff regulation: approving tariffs and preventing unfair pricing.
4. Interconnection: obliging operators to interconnect, and fixing interconnection terms and charges.
5. Numbering: national numbering plan and allocation of number blocks and short codes.
6. Quality of service regulation: QoS standards and monitoring.
7. Rural Telecommunication Development Fund: collecting a share of operator revenue to extend rural services.
8. Type approval: standards for telecom equipment.
9. Consumer protection and dispute settlement: complaints, disputes between operators.
10. Fair competition: preventing monopoly and anti-competitive practices.

Other related instruments: Telecommunication Policy 2060 (2004), Radio Frequency Policy, and NTA directives and by-laws (e.g. interconnection, QoS, number portability guidelines).

Basic needs of a charging plan for a telecom company

A charging plan decides how much each subscriber pays for a service. Its basic needs are:

1. Cost recovery and profit: cover capital and operating costs and give a fair return.
2. Fairness: charge in proportion to use of network resources, i.e. call duration, distance (local, STD, ISD) and time of day.
3. Simplicity: easy for customers to understand and for the exchange to implement (periodic pulse metering, CDR-based billing).
4. Encourage efficient use: lower off-peak rates to shift traffic out of the busy hour.
5. Affordability and universal service: low rentals or lifeline tariffs for basic access.
6. Competitiveness: attractive packages, prepaid and postpaid plans.
7. Regulatory approval: tariffs approved by NTA and within its rules.
8. Accurate measurement and billing: reliable metering, records and customer billing.

Typical elements: