UTL licence automatically cancelled as company seeks extension to settle Rs31 billion debt

United Telecom Limited’s telecommunications licence was automatically cancelled after the company failed to meet the September 4 renewal deadline, according to the Nepal Telecommunications Authority (NTA). Although the law requires an immediate public notice of cancellation, the NTA has not yet issued one, pending a board decision. UTL, which is 80% foreign-owned and includes Indian shareholders such as Mahanagar Telephone Nigam Limited, Telecommunications Consultants India Limited and Tata Communications, owes about Rs31 billion in renewal fees, late-payment penalties, royalties and other charges.

The firm has asked the regulator to allow an initial payment of Rs13.53 billion, with the remainder to be paid in installments, arguing that COVID-19 impacts and delayed approvals have constrained its finances. It also seeks to convert its 2G and 3G licences to 5G and has secured prospective foreign loans to meet part of the debt. The NTA indicated that the cabinet has not yet ruled on UTL’s proposals and that full payment is required before any licence renewal can occur.