The United Telecom Limited's (UTL) license has been cancelled automatically by Nepal Telecommunications Authority(NTA) effective from Sep 4, 2026 after UTL failed to renew its 10 year license and couldn't clear it RS 30.8 billion debt.
UTL's unified license which was issued September 5, 2016, and technically allowing nationwide GSM and 4G service expired after 10 years without renewal. Under Section 25 of the Telecommunications Act, 1997, that made revocation automatic.
UTL is a joint venture between Indian telecommunications companies and Nepali investors. The company obtained a basic telephone service licence on September 5, 2016. It has 80 percent foreign investment and 20 percent Nepali investment.
Similar cases of UTL
UTL's troubles are long-documented: the NTA first warned of cancellation in January 2023, revoked a smaller internet-service license in December 2023, gave UTL a 15-day ultimatum over Rs 7.5 billion in dues in June 2024 (which it missed), and saw a formal revocation proposal reach its own board in November 2024 without action. Despite acquiring roughly 500,000 subscribers in its early years, the company never transitioned from CDMA to GSM, leading to what analysts describe as prolonged operational paralysis.
A similar process previously played out with Smart Telecom, which lost its license in April 2023 over more than Rs 4.19 billion in unpaid dues.
NTA has issued formal payment demands to UTL, with further legal recovery measures including eventual asset auction that may follow if the company fails to settle outstanding dues.
