KATHMANDU, June 7: The Nepal Telecommunications Authority (NTA) has written to United Telecom Limited  (UTL), a private sector telecommunication service provider, demanding immediate payment of outstanding dues totaling around Rs 7.5 billion within 15 days. The directive was communicated via a letter, urging UTL to promptly settle its liabilities.

The outstanding dues comprise various fees such as installment payments, frequency charges, royalties, rural telecommunication development funds, fines, etc., associated with license renewal.

UTL obtained a basic telephone service license on September 5, 2016. If the dues remain unpaid, NTA is poised to revoke UTL's mobile service license. 

Earlier, UTL had challenged the NTA’s decision to impose fines and charges at the Supreme Court. However, the apex court on February 6, 2024 dismissed UTL's writ petition challenging NTA's decision to collect the arrears.

UTL initially moved the Supreme Court arguing that the NTA did not extend its license  for laying the optical fibre under a project worth Rs 2 billion. This  case also caused problems for the NTA to collect the arrears.

However, a division bench of SC Justices Prakash Man Singh Raut and Abdul Aziz Musalman quashed all the petitions filed by UTL stating that the company lacked valid ground to prove its charges.

Despite facing financial difficulties, UTL secured the project to lay the optical fibre in collusion with the then NTA chairman Digambar Jha. As the contract was to be terminated due to lack of work progress, UTL engaged in another purchase agreement with Tele Infra Nepal.

The NTA then decided not to renew the project due to non-performance of work on part of UTL but it could not implement the decision due to the case filed at the SC.

Despite lack of work progress, UTL has not returned the mobilization fund of Rs 400 million received as advance payment. NTA has not yet decided what to do about the unused fund.