The decision came into effect from November 25.The license was automatically revoked after the company failed to renew it in time.
Min Prasad Aryal, spokesperson of NTA, said STM's license to operate LMS based on Wireless Telecommunications in 34 out of 41 districts has been automatically revoked.
"We have cancelled its Limited Mobility based on Wireless Telecommunications license for 34 districts as per the NTA Act 1997 Clause 25 (5), as the company failed to apply for renewal within the given time," said Aryal.
As per the act, the company should apply for renewal three months before the license expires. But the company can renew it in three months paying a fine of 15 percent. "As STM did not apply for renewal, it has been automatically revoked," said Aryal.
Even though STDMA Wireless 2.4 MHz license has been cancelled, the company still holds license for Wireless 900 MHz band.
NTA has cancelled STM's license to operate in Ramechhap, Nuwakot, Dhading, Rasuwa, Kavrepalanchowk, Pyuthan, Rolpa, Dang, Lamjung, Gorkha, Makwanpur, Achham, Klikot, Surkhet and Jajarkot, among others.
NTA had given Limited Mobility license to STM on November 24, 2010 to operate services in 534 VDCs of 16 districts in eastern region.
Chaudhary Group purchased 80 percent stake in STM Telecom‚ which was owned by US-based STM Communications Service Inc, back in 2013. AR Investment, a Nepali company, holds 20 percent stakes in the company.
STM, which has been operating under Gramintel brand name, had only 2,987 customers till August. Of them, only 152 use LMS, according to the latest Management Information System (MIS) report of NTA.
"STM users can inform us if they are facing any problem. It is our responsibility to uphold their right and provide them alternatives," said Aryal.
STM, however, has applied for Unified License. But it is yet to take license from NTA.
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