Nepal Telecom, the state-owned telecom giant, has decided to pay a hefty sum of Rs 20.13 billion as a license renewal fee to the government. The decision was made during the board meeting held on April 25.

With the 25-year license period of Nepal Telecom set to conclude on May 10, 2024, the board unanimously agreed to settle the renewal fee to ensure the continuity of telecom services. Failure to renew the license within the stipulated timeframe would result in the termination of the telecom's license.

The telecom sector is grappling with successive crises exacerbated by exorbitant renewal charges. Despite facing declining revenues, Nepal Telecom's decision to pay the fee stands out amid concerns that telecom operators would face financial strain due to the persistent enforcement of outdated, expensive fees set 21 years ago.