This Client Briefing provides a brief overview of the Clean Feed Policy 2016 ("CFP") that was implemented by the Council of Ministers, Office of the Prime Minister, the Government of Nepal on July 22, 2016.

The CFP was brought by Government of Nepal to:

1. Make the signals of foreign television channels advertisement free;
2. Broadcast the advertisements of products of multinational companies through Nepalese channels in order to make Nepalese advertisement agencies and channels self-reliant;
3. Increase the quality of programs broadcasted on Nepalese channels by increasing advertisements of multinational companies in Nepalese channels;
4. Stop the encroachment on Nepali language and culture;
5. Increase employment and revenue collection through the increment in the Nepalese advertisement industry; and
6. Develop the television business as an industry in Nepal by promoting activities such as production, broadcasting, etc. in Nepal.

The CFP provides that the following effects will be experienced by viewers of the foreign pay channels:

1. Prices of signal of foreign pay channel may increase;
2. Prices of pay channels may increase;
3. Clean feed broadcasting of foreign pay channels may not be as per the local time of Nepal; and
4. Broadcasting of some foreign pay channels may be stopped due to non-compliance with the CFP.

Section 6 of the CFP provides that a working group of cable operators and distributors, who are broadcasting channels pursuant to down-link permissions obtained by them in the coordination of the Deputy Secretary of the Ministry of Information and Communication ("MOIC") shall be formed to resolve problems relating to the implementation of the CFP. This working group shall carry out various activities such as making the necessary recommendations for any amendment in the CFP.

Section 7 of the CFP provides that following working policies will be observed for a clean feed broadcasting:

1. Providing down-link permissions to those organizations which desire to broadcast channels by obtaining down-link permission as per the conditions mentioned in the CFP;
2. Prescribing a condition to those organizations which have obtained down-link licenses before the implementation of the CFP, to make their channels clean feed within the end of Fiscal Year 2016/2017;
3. Renewal of the down-link licenses of only those foreign channels shall be carried out in Fiscal Year 2017/2018 which have complied with the CFP within 2016/2017;
4. To prescribe the permission fees in total for the clean feed by making amendment in National Broadcasting Regulation 1995; and
5. To ensure that the broadcasting of advertisement of commercial matters are subject to compulsory censorship.

Under Section 8 of the CFP the MOIC provides a work plan as follows: