---
title: "NTA regulations and charging plan"
subject: "Telecommunications"
chapter: 7
key: "semester_8/telecommunications:nta-regulation-charging-plan"
source: https://www.bctengineer.com/q/semester_8/telecommunications/nta-regulation-charging-plan
site: BCT Engineering
---

# NTA regulations and charging plan

Telecommunications · Chapter 7: Telecommunication Regulation

- Asked in: 2081 Chaitra, 4+4 marks; 2072 Chaitra, 4+4 marks (asked 2 times)
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/telecommunications/nta-regulation-charging-plan
- Whole chapter: https://www.bctengineer.com/md/semester_8/telecommunications/chapter-7

## Question

List the regulation of Nepal Telecommunications Authority. What are the basic charging plan needs for Telecommunication Company?

## Short answer

NTA regulations cover licensing, spectrum, tariffs, interconnection, numbering, QoS, RTDF, type approval, consumer protection, and competition. A charging plan needs cost recovery and profit, fairness by duration, distance, and time, simplicity, off-peak incentives, affordability, competitiveness, regulatory approval, and accurate billing.

## Answer

#### 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:

| Charge | Basis |
|---|---|
| Installation charge | one-time connection |
| Fixed rental | monthly access |
| Call (usage) charge | duration × distance × time |
| Value-added services | SMS, data, roaming |

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. NTA was set up under which law?
   A. Telecommunications Act, 2053 (1997)
   B. Telecommunication Policy 2060
   C. Radio Frequency Policy
   D. Electricity Act
   Answer: A. NTA works under the Telecommunications Act 2053 and Regulation 2054. (Key point: Legal basis of NTA)

2. What does NTA's interconnection regulation do?
   A. Fixes subscriber numbers
   B. Obliges operators to interconnect and fixes terms and charges
   C. Allocates satellite orbits
   D. Sets equipment prices
   Answer: B. Interconnection regulation makes operators connect to each other on fair terms and charges. (Key point: Interconnection regulation)

3. A fair charging plan bases the charge on:
   A. subscriber's age
   B. number of phones owned
   C. call duration, distance and time of day
   D. only the fixed rental
   Answer: C. Charges should follow use of network resources: duration, distance and time of day. (Key point: Fairness in charging)

4. Why do charging plans give lower off-peak rates?
   A. To reduce operator revenue
   B. To shift traffic out of the busy hour
   C. To avoid NTA approval
   D. To make bills harder to read
   Answer: B. Cheaper off-peak rates encourage efficient use by moving traffic away from the busy hour. (Key point: Off-peak rates)

## Related in Telecommunications

- [NTA's role and ITU numbering plan](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Anta-role-itu-numbering) — Telecommunications, chapter 7
- [Role of NTA in Nepal's telecom sector](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Arole-of-nta) — Telecommunications, chapter 7, asked 3×
- [NTA's role and E.164 for Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Anta-role-e164) — Telecommunications, chapter 7, asked 2×
- [Purpose of ITU and NTA's regulatory role](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Aitu-purpose-nta-regulation) — Telecommunications, chapter 7, asked 2×
- [Telecommunication definition and Nepal's history since 1913](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Atelecom-nepal-history-1913) — Telecommunications, chapter 1, asked 2×
- [Charging plan in a telephone network](https://www.bctengineer.com/question.md?key=semester_8%2Ftelecommunications%3Acharging-plan-telephone) — Telecommunications, chapter 7

## Related in other subjects

- [Regulations and opportunities for startups in Nepal](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Aregulations-and-opportunities-nepal) — Entrepreneurship Development, chapter 8
- [Basic electrical safety rules and regulations](https://www.bctengineer.com/question.md?key=semester_8%2Fhigh_voltage_engineering%3Aelectrical-safety-rules) — High Voltage Engineering, chapter 2
- [Case study: Nepal Electricity Authority / Telecom](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Acase-study-nea-nt) — Organization and Management, chapter 9
- [Plan IS for marketing company](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Amarketing-company-is-plan) — Information System, chapter 5