Sep 13, Kathmandu - The government has established ownership over United Telecom (UTL) following the automatic cancellation of its telecommunication license due to failure to meet financial obligations. 

According to the Nepal Telecommunications Authority (NTA), the license of UTL was automatically revoked after the company failed to renew its basic telecommunication service permit by the deadline. The NTA’s regulatory notice, issued on Friday, confirms that the ownership of UTL’s telecommunication assets has now transferred to the government of Nepal.

The Authority’s spokesperson, Meinprasad Aryal, stated that the decision was made during the board meeting held on Bhadra 24, and that all assets related to UTL now officially belong to the government. The license for UTL’s basic telecommunication services expired on Bhadra 19, after which the company had until Bhadra 22 to pay renewal fees— a period extended due to holidays. However, UTL failed to renew the license or settle outstanding dues within the stipulated timeframe, leading to automatic termination under Section 25(5) of the Telecommunications Act, 2053.

With ownership now vested in the government, the NTA has directed the transfer of UTEL’s telecommunications infrastructure, systems, and network to the authority. Additionally, under Regulation 34(k) of the Telecommunications Service Provider’s Property Management Rules, 2079, UTEL’s assets are now considered government property.

The NTA reported that UTL was required to pay a renewal fee of approximately NPR 3.1 billion by Monday, including dues, but failed to do so, effectively ending the company’s legal entity. 

UTL had initially obtained its basic telephone service license on Bhadra 20, 2073, with a 25-year validity period. However, the company was required to pay NPR 2 billion within the first 10 years for renewal, with subsequent renewals every five years. Despite submitting a renewal application, UTL did not fulfill the financial obligations— which, including renewal fees, fines, and dues for frequencies, royalties, and the Rural Telecommunication Development Fund (RTIDF)— totaled around NPR 3.1 billion.

Although UTEL received its license over a decade ago, it was unable to implement its planned projects, including providing telecommunication services and constructing communication corridors in Gandaki and Karnali regions. The company’s failure to develop projects worth approximately NPR 40 crore led to the termination of its agreements following legal complications with the NTA. Moreover, the company had left unused crucial frequency bands— 850MHz, 900MHz, and 1800MHz— and lacked physical infrastructure, offices, or staff, which further hindered operational functionalities.

This development marks a significant shift in Nepal’s telecommunication landscape, with the government now fully in control of UTL’s former assets and infrastructure.