The board meeting of telecommunications sector regulator held on Monday took the decision.
Earlier on February 22, NTA had directed UTL to acquire unified license within 30 days. Responding to the direction, UTL had written to NTA on March 15, asking the regulator to provide it 60 additional days to acquire unified license citing internal management problems.
Digambar Jha, chairman of NTA, said they were facing difficulty in taking decision on the unified license as time period to take the license was not specified in NTA's earlier decision. "UTL has sought 60-day extension deadline to take unified license. We have accepted their proposal," said Jha.
UTL has been holding frequency for more than two years.
Achyutananda Mishra, assistant spokesperson of NTA, told Republica that NTA board has accepted UTL's proposal to extend deadline by 60 days. "If it does not acquire license within the given timeframe, we will not issue spectrum in 900 MHz frequency," said Mishra.
The government has allocated 900 MHz and 1800 MHz frequency for the telecom operators to provide GSM service. The 900 MHz frequency is considered the best to provide voice service at lower cost.
To acquire unified license, telecom operators have to pay licensing fee of Rs 357.5 million and license renewal fee of Rs 20.13 billion to be paid in 10 installments within 10 years of receiving the license.
"UTL has already paid Rs 107.2 million as part payment of licensing fee and now it has to pay the remaining amount, Rs 250.03 million, within the next 60 days to get the license," said Mishra.
UTL is jointly promoted by three Indian firms -- Mahanagar Telephone Nigam Limited (MTNL), Telecommunications Consultants India Limited, and Tata Communications Limited --- and a Nepali firm -- Nepal Ventures. Indian firms jointly hold 80 percent stake in the company, while Nepal Ventures owns the remaining 20 percent.
SMART TELECOM TOLD TO SUBMIT PROGRESS REPORT
NTA on Monday directed Smart Telecom, which acquired unified license in 2013, to submit its progress report within 15 days.
"Though it took unified license in 2013, it is yet to start service. That is why we have asked Smart Telecom to submit its progress report rollout plan within 15 days," said Mishra.
Smart Telecom has not been able to expand operation due to dispute in share ownership.
As it has already been two years that Smart acquired the unified license, it has to pay Rs 4 billion as license renewal fee.
"If Smart Telecom does not start service, its license can be cancelled and given to other company," said Jha.
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