Vianet pays Rs 550 million in royalty & RTDF dues

KATHMANDU: Internet service provider Vianet Communications Limited has settled its outstanding dues, paying a total of Rs 550 million to the Nepal Telecommunications Authority (NTA) and the Ministry of Communication and Information Technology.

The payment includes disputed arrears, royalty fees, and contributions to the Rural Telecommunications Development Fund (RTDF) for the fiscal year 2080/81.

As per the Telecommunications Act 2053, ISPs are required to pay 4% of their revenue as royalty and 2% as RTDF.

However, there was an ongoing dispute between the government and ISPs regarding whether these charges should apply solely to internet sales or also to maintenance expenses.

ISPs had argued against imposing fees on maintenance costs, but the Supreme Court ruled that both royalty and RTDF must be applied to these expenses as well. Following the court’s decision, Vianet promptly proceeded with the payment.

In addition to settling past dues, Vianet has also cleared its royalty and RTDF obligations for the latest fiscal year.

So far, only two major ISPs in Nepal have completed their outstanding payments along with the current year’s dues.

Randhir Kumar Shah, Chief Financial Officer (CFO) of Vianet, stated, “The court’s verdict has resolved the payment uncertainty. We are pleased to fulfill our obligations and remain committed to providing the best services to our customers.”

With this payment, Vianet has now fully met its financial responsibilities related to royalty and the RTDF.