Nepal’s telecom regulator, the Nepal Telecommunications Authority (NTA), is facing major scrutiny after the nation’s anti-corruption body filed charges relating to its Mobile Device Management System (MDMS) project.
The controversial initiative aimed to curb Nepal’s “grey market” of unauthorized smartphone imports. But its rollout has been marred by delays, technical snags, and now, serious corruption allegations.
In simple terms, the MDMS is a centralized system designed to register mobile devices imported into Nepal. The stated goal is to promote lawful imports, ensure tax compliance, and potentially address security concerns. The system would, in theory, be able to block unregistered devices from operating on the Nepalese telecoms network.
But the MDMS project which was initially announced back in 2018 has been exceptionally slow to come online. Despite a roughly $7 million estimated budget, the system’s implementation has been repeatedly postponed over the years.
On 7th November 2023, the NTA claimed the MDMS was finally active. But even if we monitor Nepal’s smartphone import scenario surfacely, there’s no noticeable impact on the grey market.
The Commission for Investigation of Abuse of Authority (CIAA) has now filed charges against 20 individuals and companies over the purchase and efficacy of the system, according to Nepali Telecom. Those accused include:
- Former NTA chairmen Digambar Jha and Purushottam Khanal
- Former senior director Ananda Raj Khanal
- Incumbent NTA directors Dipesh Acharya and Surendra Hada
- Achyutanand Mishra, deputy director of frequency, service quality, and service flow monitoring branch
- Representatives of Namaste Global Singapore and OSI Digital India
The corruption allegations throw the entire MDMS project into doubt. Aside from the waste of government resources, the implicated officials could face substantial fines and jail time if proven guilty.
The CIAA reportedly took action following extensive investigations into the MDMS project. A previous committee formed by Nepal’s communications ministry (MoCIT) had already labeled the project’s bylaws as controversial and suggested the project should have been completed within 6 months. Six years into the project now, the full rollout of MDMS in Nepal is still uncertain.
With new developments in the MDMS saga unfolding, I am constantly reminded of the questions I had when I first heard about this project:
• Efficacy: Is the MDMS ever technically feasible in the Nepalese context?
• Necessity: Did the project’s potential benefits justify the costs and complex implementation?
• Alternatives: Could alternative regulatory approaches have achieved similar results?
The ongoing legal case will likely shed more light on this troubled government tech project.
