KATHMANDU: Nepali promoters of United Telecom Limited (UTL), a telecom operator that has remained largely inactive for years, have intensified efforts to renew the company’s basic telephone service licence as its 10-year term approaches expiry.
UTL’s licence is set to expire on September 4, 2026. The company has already applied to the Nepal Telecommunications Authority (NTA) for renewal within the legally prescribed three-month period.
UTL promoters have recently increased their visits to the NTA and government offices in Singha Durbar, seeking facilitation for the renewal process. The push comes as the government considers introducing a third mobile operator and the NTA moves ahead with a draft framework for 5G services.
The promoters are seeking to preserve UTL’s licence and potentially revive the company as a third telecom operator. However, the company faces a major financial hurdle, with outstanding dues to the government and NTA exceeding Rs 30.8 billion.
NTA spokesperson Min Prasad Aryal said the liabilities include licence renewal fees, royalties and contributions to the Rural Telecommunications Development Fund. UTL has also incurred a 15 percent penalty for delayed payments.
UTL obtained its basic telephone service licence in 2016 but has remained out of operation for a prolonged period. Government sources say the company is also seeking relief from accumulated penalties.
Raj Bahadur Singh, UTL’s Nepali partner through Nepal Ventures Pvt Ltd, has been lobbying officials at the NTA and the Ministry of Information and Communication. Singh has reportedly proposed clearing the company’s liabilities while seeking support for licence renewal.
According to ministry sources, Singh has proposed an immediate payment of Rs 10 billion, followed by Rs 3.4 billion as the first instalment of the renewal fee. However, NTA sources estimate that UTL owes around Rs 20 billion in renewal fees alone.
UTL is seeking an instalment facility similar to that previously granted to Nepal Telecom and Ncell. If the renewal fee were spread over five years, annual payments would be around Rs 4 billion.
UTL is owned by India’s Mahanagar Telephone Nigam Limited (26.68%), Telecommunications Consultants India Limited (26.66%), Tata Communications (26.66%) and Nepal Ventures (20%).
Aryal said the NTA board has instructed UTL to clear the required dues and renewal fees before the renewal process can move forward. The authority also informed the ministry about the decision on August 5.
UTL’s director said the company is seeking renewal after clearing its liabilities and could bring in additional foreign investment. He said UTL is preparing to introduce 5G services if the government creates a favourable environment.
UTL’s internet service licence was cancelled nearly three years ago after prolonged inactivity and failure to pay renewal fees. Its basic telephone licence is now also approaching expiry, putting the company’s future at a critical juncture.
