Nepal Telecom Authority Moves to Recover Rs 8.052 Billion from United Telecom Limited
The Nepal Telecommunications Authority (NTA) has reaffirmed its commitment to recovering over Rs 8.052 billion in outstanding dues from United Telecom Limited (UTL), following the automatic cancellation of UTL's basic telephone service license on September 5. The regulator has initiated asset freezes and valuations while also announcing its Rs 5.50 billion budget for FY 2026/27.
KATHMANDU, Oct 1 — The Nepal Telecommunications Authority (NTA) has reaffirmed its determination to recover more than Rs 8.052 billion in outstanding dues from United Telecom Limited (UTL).
UTL's basic telephone service license was automatically cancelled effective September 5, in accordance with the Telecommunications Act 1996 and the Telecommunications Regulations, 1997.
Following the license cancellation, a decision has been made to recover UTL's outstanding liabilities to the Government of Nepal and the NTA—including frequency fees, royalties, and contributions to the Rural Telecommunication Development Fund—as government arrears.
Speaking at a press meet on Thursday, NTA Spokesperson Min Prasad Aryal said the regulator has decided to take control of UTL's movable and immovable assets, telecommunications infrastructure, systems, and network, and to proceed with the valuation process. Aryal added that letters have been sent to Nepal Rastra Bank, the Department of Land Management and Archive, and the Office of the Company Registrar to freeze UTL's bank accounts and movable and immovable assets.
Meanwhile, the NTA has announced an annual budget of Rs 5.50 billion for Fiscal Year 2026/27. Under this budget:
- Rs 813.17 million has been allocated to the reserve fund.
- Rs 4.69 billion has been allocated to the Rural Telecommunication Development Fund.
Out of the tariff proposals submitted by various telecommunication service providers—including those for mobile and internet services—the NTA has approved the rates proposed by ten service providers. The concerned service providers have been directed to publish the approved rates and their effective dates for public information.