The Nepal Telecom Authority (NTA) has warned United Telecom Limited (UTL) that it could lose its operating license if it doesn’t pay backdated license fees.
The mobile network was granted a license with a payment based on revenues, but has only been paying 4% of revenues to the regulator.
According to NTA official, UTL has not paid royalty amount since 2006. As per the commitment, UTL was supposed to make a total payment of over US$14.03 million.
According to reports, after deducting royalty received in the form of 4% of its revenue, the company still has to pay around US$12.2 million to the government to clear its royalty liability.
The telecom regulator has informed the UTL management that it is initiating legal procedures to scrap operating license and slap a fine of US$6878.53 within a week.
According to the company, it suffered such serious damage from a six-month shutdown in 2006 that the company has not recovered sufficiently to restart the royalty payments.
