The work of Mobile Device Management System (MDMS), which was supposed to be operational by December 3, has not come into operation yet. The work has not been completed even after seven more months have elapsed.
The project was launched by NEA in the previous fiscal year with a plan to curb the illegal mobile phone trade-in Nepal.
Accordingly, the Telecommunication Authority of Nepal and Numera (M) SDNBHD signed the agreement on July 3 to bring the service into operation within 6 months from the date of the agreement. Malaysia, OSI Consulting Pvt. Ltd. India and Namaste Global Com Pvt. Ltd. Singapore had entered into an agreement.
One year after the agreement was signed, MDMS has not been able to come into operation. The main reason for this is the authority. According to an official of NEA, there was a kind of injustice in NEA regarding the opening of LC.
The company had applied to NEA to open an LC in November. According to the officials, the application had reached the NEA’s accounting branch at the end of November. However, the petition was put on hold for about four months due to injustice from the branch.
The letter of application for the LC, which reached the Accounts Branch at the end of October, was issued only on 18 February. If he had been able to play the LC game on time, he would have learned to work within a month. However, due to the injustice of where to keep the system and what to keep it, it took a long time from the branch. Until then, the government had promised to provide the land to Khumaltar.
Later, the government decided to provide the land in Chavahil of the authority to keep the system as it was certain that the land of Khumaltar would not come. And Numera (M) SDN on February 18. B.H.D. The letter was sent to Malaysia JV. After receiving the letter on March 3, the necessary process was started in the bank and the lockdown started.
The company was given an extension till March last year after the LC was not issued for the work to be completed in December. Earlier, the company had informed the authority about the arrival of its goods.
The company had informed the NEA that the goods had arrived at the customs last February.
After the lockdown, the company completed the banking process and submitted the delivery document to the authority. The authority sent the document to a study consultant. Based on the report from there, the company has received approval to import the goods only last week. The officials said that goods worth Rs 140 million stuck in the customs will arrive in the next one or two days.
Meanwhile, Nepal Telecom Authority spokesperson Min Prasad Aryal said that the company has completed the work on the software. The company has been given extra time to connect the system within three months of the opening date of the international flight. This has created more injustice in MDMS system connectivity.
The government had earlier stated that international flights would be operational from today (August 1). However, as the epidemic in Corona continues to escalate, it has been closed until August 30. Also, flight operations are estimated to be delayed.
Entrepreneurs say that the delay in the connection of MDMS system is having a big impact on the mobile business.
Deepak Malhotra, president of the Mobile Importers Association of Nepal, says, “The government had increased VAT and excise duty on mobiles through the budget since last year, claiming that the trade in illegal mobiles will be stopped after the implementation of MDMS.” But since it has not been implemented yet, on the one hand, the tax burden on businessmen has increased and on the other hand, illegal mobile phones are being encouraged. ‘
The NEA has given priority to this project as the illegal entry of mobile phones into Nepal can be stopped with the connection of MDMS system. NEA has allocated Rs. 800 million in the budget of this fiscal year to establish mobile device management system.