Kathmandu. Ncell has submitted a concrete proposal to the government to end the confusion regarding its ownership and license renewal. In a letter to Prime Minister Sushila Karki, Ncell has expressed its readiness to bring initial public offering (IPO) to the general public and to convert the company into a fully owned Nepali company.

According to the Telecommunications Act, 2053, after 25 years, the property of a company with more than 50 percent foreign investment will be owned by the government. To resolve the complexities created due to this legal provision, Ncell has proposed to establish itself as a Nepali company by changing its ownership structure.

Ncell has presented three options through the letter. As per the first option, the share ownership of the company will be increased to more than 50 percent by Nepali citizens or organizations. The second option would be to issue an IPO to the general public and the general public would be involved in the ownership of the company. As the third option, a proposal has been made to convert the company into a full-fledged Nepali company under the Foreign Investment and Technology Transfer Act, 2075 BS.

According to the company, if these proposals are implemented, the legal obligation to hand over the property to the government after 25 years will end and Ncell can continue to operate as a Nepali company. Ncell has also urged the government to reconsider its decision last year not to renew the license after four years.

Ncell has claimed that the tenth amendment to the telecommunications regulations and the stringent conditions imposed during the license renewal have created confusion among foreign investors. The company has said that it is its business right to change its share structure before the expiry of the license period and that there should be no government obstruction in it.