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UTL's plea for royalty waiver rejected

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KATHMANDU, Sept 17: The Appellate Committee under the Ministry of Information and Communications (MoIC) Friday rejected United Telecom Ltd´s (UTL) appeal for waiver of its outstanding royalty to Nepal Telecommunication Authority (NTA), leaving the operator with no option but to clear its outstanding royalty amounting to Rs 896 million.



Earlier this year, NTA had sent a letter to UTL, warning that it might lose operating license if outstanding due is not cleared as per the commitment.[break]



UTL, however, approached the Appellate Committee against the NTA directive, and filed a petition against the NTA´s decision in April. In its petition, UTL had argued that the NTA decision of scrapping its operating license was not relevant.



NTA Spokesperson Kailash Prasad Neupane said UTL now has no option but to comply with the NTA directive. “The time limitation for clearing dues and other procedures will be finalized after we receive a copy of the decision,” Neupane added.



UTL, on the other hand, has been saying that it suffered loss of Rs 4.44 billion because NTA did not fulfill the terms and conditions of the license. It has even claimed compensation from the NTA.



The government had earlier waived off the committed royalty of UTL worth around Rs 190 million for the period when the then king Gyanendra Shah seized the power and restricted services of telecom operators.



NTA officials said UTL has so far paid just Rs 160 million, which is equal to 4 percent of the total annual income, whereas going by its committed royalty fee, it should have paid well over Rs 1 billion.



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