Regulator slaps NPR374m fine on Global Internet over illegal VoIP, revokes licence

11 Jul 2012

National telecoms regulator the Nepal Telecommunications Authority (NTA) has reportedly fined Global Internet Service Ltd NPR374.4 million (USD4.37 million) for its illegal involvement in a voice-over-internet protocol (VoIP) scam, and revoked the operator’s licence. The Himalayan Times quotes NTA spokesperson Kailash Prasad Neupane as saying: ‘Of the total fine, NPR187.2 million is the actual loss caused by the internet service provider [ISP] through illicit VoIP.’ The remaining NPR187.2 million is the fine equal to the actual fraud, he added. Not content to rest there, the NTA has also seized all of Global Internet’s equipment, Neupane said, but has given the ISP a 35-day ultimatum to appeal and provide it with a justification against the decision. The move follows a February 2012 announcement that the Department of Revenue Investigation (DRI) was seeking a penalty of NPR2.59 billion against ‘responsible officials’ and the owners of Global Internet. The DRI’s fines include NPR865 million in losses to the government and a fine of NPR1.73 billion under the Revenue Leakage Investigation and Penalty Act.