Last Updated on September 12, 2026
Summary✨
- The Nepal Telecommunications Authority revoked United Telecom Limited’s (UTL) license due to unpaid fees and failure to operate services.
- UTL had to pay over Rs 30 billion in renewal and outstanding fees, which included penalties and contributions.
- The deadline to settle dues expired on September 04, leading to automatic revocation under the Telco Act, 1997.
- NTA has frozen UTL’s assets, which will be auctioned off as per government rules after losing the operating license.
- Despite efforts to gain leniency, UTL, a joint venture with Indian telecom firms, failed to establish a customer base in the industry.
The license of the inactive private telco United Telecom Limited (UTL) has been revoked. After the company failed to pay off its renewal fees and outstanding fees, its license faced automatic revocation as per the Telco Act, 1997.
The company’s deadline to pay its dues expired on September 04. But so far, NTA hasn’t made a final verdict on its status, although it is now that the license has been revoked under the existing law.
Nepal Telecommunications Authority (NTA) spokesman Min Prasad Aryal has shared that the board has decided to cancel UTL’s operating license. The company’s assets have been frozen, and they will soon be processed for an auction. As per the rule, after the telco loses its license, the assets of an operator come under government ownership, and they are auctioned off.
“Since UTL is not currently operating any services and has no remaining customers, the board decided to revoke the license, freeze its assets, and recover outstanding dues as government arrears. We will release further information later,” Aryal said.
UTL has had to pay 30 billion in renewal and outstanding fees. However, the company doesn’t operate a network and has no customers. Even though it was making some efforts to secure the government’s leniency but to no avail.
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UTL License revoked automatically
The company’s renewal fee stood at Rs 20 billion. The additional 15% for late payment and other penalties incurred a liability of further Rs 3 billion for the ill-fated telco. Additionally, the Rural Telecommunications Development Fund (RTDF) contributions and frequency fees reached over Rs 7.5 billion. So, overall, the company had to pay NTA over Rs 30 billion to stay clear of dues.
The company had filed for renewal on June 03, three months before the deadline date. This was consistent with the prevailing law in the country. However, the company failed to pay its fees and outstanding dues.
UTL is a joint venture between Indian telecom companies and Nepali investors. It obtained a basic telephony license on September 5, 2016, but failed to make any mark in the industry.
Now, NTA will start “asset management” of the telco and auction its assets.
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