As preparations progress to introduce a third telecom operator in Nepal, efforts to revoke the license of United Telecom Limited (UTL) are gaining momentum. The proposal to cancel UTL’s license has been presented to the board of the Nepal Telecommunications Authority (NTA), citing significant outstanding dues.
UTL, which still owes approximately Rs 7.5 billion, including fees for license renewal, frequency, royalties, and contributions to the Rural Telecommunications Development Fund, faces severe consequences for failing to settle its debts. Despite the NTA’s 15-day ultimatum issued on June 8, 2023, following the Supreme Court’s dismissal of UTL’s writ petitions against the government on February 14, 2024, the company has not made any payments.
According to an NTA source, the proposal to revoke UTL’s license was presented to the board before the Tihar festival. However, the board meeting to finalize the decision has not been scheduled yet. The Chairman of the NTA, Bhupendra Bhandari, who is currently in India for an International Telecommunication Union (ITU) program, is expected to return on Thursday. Only after his return will the board convene to discuss the matter and decide whether to revoke UTL’s license.
UTL, which was granted a basic telephone service license on September 5, 2016, has until May 2024 to pay the outstanding amount. However, the debt continues to increase as the company has failed to make payments.
