MDMS implementation hindered by black market operators, NTA Chairman Khanal reveals

KATHMANDU: The Nepal Telecommunication Authority Chairman, Purushottam Khanal, revealed that the implementation of the Mobile Device Management System (MDMS) faced delays due to the interference of middlemen.

Last year, the authority temporarily halted the implementation of the MDMS, but it resumed this effort on Monday. Khanal explained that the system encountered obstacles because middlemen were involved in mobile transactions.

“Nepal imports mobile phones worth Rs 20 to 25 billion annually, and over 10 percent, more than 3 billion, was being earned by black market operators. These individuals conducted mobile phone businesses without paying taxes or following legal procedures,” Khanal said. “This thriving black market had to be curbed to ensure revenue to the state.”

Khanal further pointed out that the MDMS could not be implemented for a year due to the misinformation and financial influence of middlemen. He emphasized that the authority has now introduced a system that allows mobile users to use their devices securely and deactivate them promptly if lost.

Under the Global System for Mobile Communication (GSM), mobiles produced using the system and mobile service technology will be recorded in a database, but devices with unpaid tolls or Subscriber Management Interface (SMI) records will not be included. Additionally, steps are being taken to exclusively import system-compatible mobile phones in Nepal.

Chairman Khanal expressed his belief that the MDMS system will effectively curb mobile black market activities and enhance revenue administration.