KATHMANDU: The deadline for renewing the operating licence of United Telecom Limited (UTL) has expired. Although the licence expired on Bhadra 19, neither the Nepal Telecommunications Authority (NTA) nor the Ministry of Communication and Information Technology has taken a decision on the matter. Reluctant to assume legal risks amid the company’s outstanding liabilities and the complexities surrounding the case, government agencies are now looking to the Cabinet for a final decision.
Uday Bahadur Rana Magar, spokesperson for the Ministry of Communication and Information Technology, said the ministry has held no discussions or made any decision regarding the renewal of UTL’s licence. He said that, with the licence already expired, there is no further option unless the Cabinet makes a special decision. NTA spokesperson Min Aryal likewise said the process cannot move forward until UTL clears its outstanding dues.
According to the NTA, UTL owes the government more than Rs30.8 billion. The company has proposed paying the outstanding amount in instalments after receiving a waiver of penalties. It has also submitted a plan to bring in foreign investment and expand its services, including 5G. UTL had submitted its licence-renewal application on Jestha 19. Under Nepal’s telecommunications law, an operator must apply for renewal at least three months before the licence expires and must settle its financial obligations.
Government officials are under increasing pressure over the renewal of UTL’s licence, given that the company has been largely inactive in Nepal’s telecommunications sector for nearly a decade. Officials have been reluctant to sign off on the file, fearing potential legal consequences. UTL’s shareholders include three Indian state-linked entities-Mahanagar Telephone Nigam Limited (MTNL), Telecommunications Consultants India Limited (TCIL) and Tata Communications-along with local partner Raj Bahadur Singh, who holds a 20% stake.
So far, the NTA has neither formally cancelled UTL’s licence nor approved its renewal, leaving the company’s future in Nepal’s telecommunications market unresolved.
