United Telecom Limited (UTL), once Nepal’s first private telecommunications operator, has lost its operating licence after failing to meet the required renewal conditions and clear its outstanding financial obligations. The company’s basic telecommunications service licence was automatically cancelled after the renewal deadline passed without the required payments.
UTL’s licence, issued in September 2016, reached the end of its 10-year term on September 4, 2026. Under Nepal’s telecommunications regulations, operators are required to submit their renewal application along with the prescribed fees within the required timeframe. UTL failed to complete the process, leading to the cancellation of its licence.
The company’s financial obligations had grown to around Rs 30.8 billion. According to Nepal Telecommunications Authority figures, the amount includes licence renewal fees, frequency charges, royalties, contributions to the Rural Telecommunications Development Fund and penalties. The licence renewal component alone accounts for a substantial portion of the total liability.
UTL had made several proposals to keep its licence alive. The company sought permission to settle part of its liabilities immediately and pay the remaining amount through instalments. It also proposed bringing in new foreign investment and reviving its operations with plans to develop a 5G network. However, the proposed financial arrangements were not completed within the required timeframe.
The company had also sought approval for additional foreign investment to support its proposed revival. However, the necessary approvals were not secured before the licence deadline, leaving UTL unable to meet the financial conditions required for renewal.
Following the licence cancellation, the Nepal Telecommunications Authority has moved to secure UTL’s telecommunications infrastructure and network assets. The regulator has instructed the company to hand over its telecommunications systems, networks and related infrastructure.
UTL has a long history in Nepal’s telecommunications industry. It began operations in 2003 and became the country’s first private telecom operator, ending Nepal Telecom’s monopoly in basic telephone services. The company once had hundreds of thousands of customers, but its operations gradually declined amid financial, ownership and management difficulties.
The cancellation of UTL’s licence marks a significant development in Nepal’s telecommunications sector. It also raises questions about how telecom licences, unpaid government dues and the entry of new operators will be handled as Nepal seeks greater competition and investment in the sector.