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Tag: Ncell

  • Axiata’s share price falls 4.87% on RM2.16b tax bill

    Axiata’s share price falls 4.87% on RM2.16b tax bill

     Axiata Group Bhd’s share price fell 4.87% at mid-day after the group and its majority owned subsidiary Ncell Pte Ltd were ordered by the Nepal Supreme Court to pay capital gains tax of 61 billion Nepalese rupees (RM2.16 billion) for the Ncell buyout deal. At 12.30pm, Axiata was the eighth loser on Bursa Malaysia, trading at RM3.71 with 7.03 million shares changing hands.

    The Himalayan Times yesterday reported that Axiata had been hit with the tax bill, which excludes late fees and fines, for its US$1.36 billion purchase of Reynolds Holdings Ltd, which has 80% stake in Ncell, in 2015.

    The publication cited the Nepalese Large Taxpayers Office chief as saying it would only initiate the process of collecting the tax amount once it gets a copy of the tax verdict.

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  • Ncell taps ZTE for network virtualization

    Ncell taps ZTE for network virtualization

    Nepal’s Ncell Axiata has contracted ZTE to provide network virrtualization technologies for a new virtual subscriber data management (vSDM) platform.

    The operator’s vSDM platform will use advanced virtualization, advanced distributed architecture, hierarchical storage, multi-level protection and cloud technologies, ZTE said.

    Ncell is conducting the project in a bid to establish a more intelligent and flexible telecoms network while increasing cost savings on hardware investment and operations.

    Malaysia-based Axiata Group completed the acquisition of an 80% stake in Ncell in April 2016 for 5.9 billion ringgit ($1.37 billion). Ncell is competing with state-owned Nepal Telecom to be the market’s top operator by market share.

    Ncell has meanwhile announced it has expanded its LTE service to the Pokhara and Damauli areas as part of its plan to make 4G accessible to 15% of the population by the end of the year.

    The operator launched initial 4G services in Kathmandu Valley including in Nagarkot, and Banepa and Dhulikhel on June 1 after securing permission to deploy services over its existing spectrum under Nepal’s technology neutrality principles.

    Ncell aims to make 4G service available in 40 cities nationwide by 2018. Nepal’s National Broadband Policy aims to make broadband connections available to 45% households within 2018 and connect all village development committees with broadband by 2020.

  • Ncell launches 4G despite PAC directive

    Ncell launches 4G despite PAC directive

    Nepal’s Ncell has announced the launch of 4G services, despite reports that the company is to have its 4G license withheld due to a tax dispute.

    In a statement, Ncell said it has launched 4G in Kathmandu, Nagarkot, Banepa and Dhulikhel, and has set a target of rolling out 4G to 15% of the country by the end of the year.

    Ncell will allow customers to replace their existing SIMs with a 4G compatible USIM for free at Ncell stores, and will provide 1GB of bonus data with a three day validity to celebrate the launch of 4G.

    The company said customers can expect download speeds of between 10Mbps and 37Mbps and upload speeds of 3Mbps to 18Mbps.

    The statement made no mention of the recent directive from the parliamentary Public Accounts Committee (PAC) that Ncell be prohibited from launching 4G until the dispute is resolved over capital gains tax associated with the sale of TeliaSonera’s indirect controlling stake in Ncell to Malaysia’s Axiata in 2015 for $1.03 billion.

    The PAC has “serious reservations” over the launch, and will call a meeting this week to decide on a formal position over whether to oppose the issuance of Ncell’s 4G license under Nepal’s technology neutrality policy.

    According to the report, Ncell had launched 4G before regulator the Nepal Telecommunications Authority (NTA) had a chance to reach a decision over the validity of the 4G license.

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  • Ncell’s 4G license to be withheld

    Ncell’s 4G license to be withheld

    The Nepal Telecommunications Authority (NTA) has backtracked on its decision to grant Ncell a 4G license in response to a directive from the parliamentary Public Accounts Committee (PAC).

    The committee recently directed the regulator to prevent Ncell from launching 4G services until an ongoing dispute over capital gains tax is settled. The NTA has announced it will abide by this decision.

    Ncell was granted approval earlier this month to launch 4G services despite an earlier decision by the PAC not to allow the launch until the tax dispute is settled.

    In making its decision, the NTA said the directive has been issued in the spirit of Nepal’s technology neutral spectrum policy, as well as in response to a finding from Nepal’s Development Committee that withholding a license would negatively affect consumers and state funds.

    The tax dispute revolves around the sale of Sweden’s TeliaSonera’s indirect majority stake in Ncell to Malaysia’s Axiata for $1.03 billion in 2015.

    But the government has been split on whether the tax should be paid by the buyer or the seller and may require Ncell to pay on behalf of the international companies. There is also disagreement over whether Nepalese tax law even applies to the transaction, as it involved the sale of a holding company listed in a tax haven.

  • Nepal Telecom Authority clears Ncell to launch 4G services

    Nepal Telecom Authority clears Ncell to launch 4G services

    The Nepal Telecommunications Authority (NTA) has cleared operator Ncell to launch 4G services over its existing 900-MHz and 1800-MHz spectrum holdings, paving the way for the operator to compete with Nepal Telecom.

    The telecoms regulator has informed Ncell it is clear to launch 4G services using its spectrum holdings from June 1.

    But the move goes against the decision of Nepalese parliament’s Public Accounts Committee (PAC) not to allow Ncell to launch 4G services until it pays a capital gains tax the government has been demanding from the operator.

    According to the report, the committee had approached the regulator asking why Ncell had been permitted to roll out 4G services despite the tax dispute. The NTA responded that it had given the directive in the spirit of the technology neutrality spectrum policy.

    Nepal’s Development Committee had also directed NTA to allow a launch on the grounds that consumers have been negatively affected by the decision to delay providing approval, undermining the committee’s authority.

    In light of the PAC’s concerns, the regulator noted that while Nepal Telecom has been granted new spectrum to support its 4G foray, Ncell so far has not.

    The tax dispute centers on Ncell’s former shareholder TeliaSonera’s decision to exit the Nepalese market. The Sweden-headquartered operator sold its indirect majority stake in Ncell to Malaysia’s Axiata Group for $1.36 billion during a deal announced in April last year.

    The Nepalese government has demanded that capital gains tax be paid on the transaction, but because TeliaSonera had already exited the market and had disputed the assertion that the transaction is taxable, it has been leaning on Ncell to resolve the issue and potentially pay the tax on TeliaSonera’s behalf. But Ncell has resisted this pressure.

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  • Axiata Group buys Nepal’s Ncell for $1.36b

    Axiata Group buys Nepal’s Ncell for $1.36b

    Malaysia-based Axiata Group has entered the Nepal telecoms market with the acquisition of the nation’s largest mobile operator Ncell.

    Axiata has paid $1.36 billion for an effective 80% stake in Ncell from previous owners TeliaSonera UTA Holdings and Reynolds Holdings’ SEA Telecom Investments.

    Local partner Sunivera Capital Ventures will retain a 20% direct stake in Ncell, as required under Nepalese law.

    Axiata group CEO Dato’ Sri Jamaludin Ibrahim commented that Ncell represents a perfect expansion opportunity for the group.

    “One key ambition we have is to effectively offer high-speed data connectivity, and exciting products and services to meet the demands of a young and maturing Nepali market,” he said.

    “There are tremendous opportunities for us to grow with the nation for the longer term. As a Group respected for its commitment to corporate responsibility and governance, we will play an integral role with the Nepali government and civil society, and contribute towards the socioeconomic development of the country and her people.”

    Axiata is already exploring synergies including opportunities to serve Nepal’s overseas foreign workers segment, which number around 1 million in Malaysia alone.

    The operator plans to launch special products for Ncell customers offering discounted prices for Ncell customers roaming within the Ncell footprint.

    Axiata Group said its combined footprint in South and Southeast Asia now covers a total population of over 2 billion.