KATHMANDU: Nearly a decade after receiving a nationwide telecommunications licence, United Telecom Ltd. (UTL) has yet to launch a single commercial mobile service while its outstanding liabilities to the government have climbed to more than Rs29 billion, according to regulatory records and official documents.
UTL was granted a licence on September 5, 2016, to operate basic telephone and GSM mobile services across Nepal. Under the licence conditions, the company was required to begin commercial operations within 12 months. However, with the licence due to complete its 10-year term in September, the company has yet to roll out any network, acquire customers or provide commercial telecom services.
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The Nepal Telecommunications Authority (NTA) decided on April 11, 2013, to grant basic telephony service licences to United Telecom Ltd. (UTL). However, it withheld the licences until the operators cleared their outstanding royalty payments. Prior to that decision, the licensing process had been delayed several times because UTL failed to submit its required rollout plan on time. The process was further held up by the NTA’s non-approval of the rollout plan and the company’s unpaid regulatory dues.
Despite failing to meet the rollout deadline, UTL continues to hold valuable 850 MHz, 900 MHz and 1800 MHz spectrum that could otherwise be reassigned for commercial use.
According to the Nepal Telecommunications Authority (NTA), UTL’s outstanding obligations-including licence renewal fees, spectrum charges, royalties, Rural Telecommunications Development Fund (RTDF) contributions and penalties-now exceed Rs29 billion.
Under the Telecommunications Act and licence conditions, the regulator has the authority to revoke licences for failure to commence services or comply with licence obligations. However, no final revocation order has been issued.
The company submitted an application to renew its licence in May but did so without clearing its outstanding dues, despite legal provisions requiring all arrears to be settled before renewal.
Regulatory sources said UTL has instead sought a long-term installment facility to pay its liabilities and has also requested an extension of its licence period, arguing it should receive additional time despite never launching commercial services.
The company is associated with Raj Bahadur Singh, son-in-law of former King Gyanendra Shah, through Nepal Ventures Pvt. Ltd. Other investors reportedly include Indian shareholders and non-resident Nepali businessman Upendra Mahato and his family.
UTL has also been involved in years of litigation with the telecom regulator. Court-issued interim orders previously delayed regulatory action, including efforts to recover outstanding payments and cancel the licence. Those legal obstacles were largely removed after the Supreme Court dismissed the company’s petitions in February 2024, allowing the NTA to proceed with enforcement measures.
The company was also linked to the stalled Mid-Hill Highway optical fiber project, where a joint venture involving UTL received an advance payment but failed to complete the work. Following a Supreme Court ruling, the regulator later forfeited a Rs502.5 million bank guarantee.
According to officials familiar with the matter, a proposal to revoke UTL’s licence has remained pending before the NTA board for nearly two years without a final decision.
With the licence set to expire in September, the newly appointed NTA leadership now faces a crucial decision: whether to enforce the law by cancelling the licence and recovering billions in unpaid dues, or grant further concessions to a company that has yet to provide any telecom service nearly 10 years after receiving one of Nepal’s most valuable spectrum allocations.
An NTA spokesperson said there has been no further development in the case so far.
