NTA to recover Rs 8.05 billion in dues from UTL, directs Ncell to submit asset handover plan

Kathmandu, October 1, 2026 — The Nepal Telecommunications Authority (NTA) has decided to recover Rs 8.05 billion in outstanding dues from United Telecom Limited (UTL) as government arrears following the automatic cancellation of the company’s basic telephone service licence.

According to NTA spokesperson Min Prasad Aryal, UTL’s basic telephone service licence was automatically cancelled on September 5, 2026, under the Telecommunications Act, 1997, and Telecommunications Regulation, 1997.

The outstanding amount is to be recovered under various headings, including frequency fees, royalties and contributions to the Rural Telecommunications Development Fund owed to the Nepal government and the authority.

Following the cancellation of the licence, the NTA has also decided to take control of UTL’s movable and immovable assets, telecommunications infrastructure, systems and network and proceed with their valuation.

Aryal said the authority has written to Nepal Rastra Bank, the Department of Land Management and Archives and the Office of the Company Registrar to freeze UTL’s bank accounts and movable and immovable assets.

Five internet service provider licences renewed

The NTA has decided to renew the licences of five internet service providers under Section 25 of the Telecommunications Act, 1997, and Rule 12 of the Telecommunications Regulation, 1997.

The service providers include Swift Network and Communication Pvt. Ltd., Oasis Broadband Internet Pvt. Ltd., Everest Link Pvt. Ltd. and Web Network Pvt. Ltd.

The authority has also said that the “Nepal’s Road to 5G” plan has reached its final stage. It has formed a subcommittee to finalise the Mobile Broadband Enhancement Plan, also known as “Nepal’s Road to 5G.”

Annual budget and programme approved

The NTA has approved its annual budget and programme for fiscal year 2026/27.

The combined annual budget under the two headings stands at Rs 5.504 billion.

The authority has also approved tariff rates proposed by 10 telecommunications service providers for mobile, internet and other services. The concerned service providers have been directed to publish the approved tariffs and their effective dates for public information.

The NTA has also formed a subcommittee to study tax-related issues in the telecommunications sector.

According to Aryal, the subcommittee has been tasked with identifying the existing situation and problems, examining legal and administrative aspects, and recommending actions to be taken by the authority and the government.

Further procedures will be initiated after the subcommittee submits its report, he said.

Aryal also said the telecommunications sector suffered damage worth around Rs 450 million due to the Bhotekoshi floods.

Ncell directed to submit asset handover plan

The NTA has directed Ncell Axiata Limited to submit a plan for handing over its assets.

Ncell’s 25-year mobile service licence will expire on May 30, 2029, and the authority has directed the company to fully comply with the Asset Management Regulation, 2022, concerning telecommunications service providers whose licences are no longer in force.

According to Aryal, Ncell has been instructed to submit its asset handover plan within the prescribed timeframe. The company has also been informed that failure to comply with the regulation could lead to further legal proceedings.

NTA plans stricter and more systematic regulation

NTA Chairman Arjun Ghimire said the authority would make the regulation and management of telecommunications services more systematic and effective.

He said telecommunications had become an essential service and that stronger and more organised regulation was therefore necessary.

Ghimire said the regulatory body needed to work more seriously to address complexities in the telecommunications sector. He added that consumers themselves were directly affected by telecommunications services and that the regulator would play an active role in making service providers more organised.

According to Ghimire, the number of operators providing voice services in Nepal has declined from six in the past to two, while the number of internet service providers has increased.

He also said total revenue in the telecommunications sector was declining. While revenue from data services has increased, revenue from voice services has been falling, he said.

At the same time, Ghimire said the use of telecommunications services among consumers was increasing day by day.

Taking these developments into account, he said the NTA would broaden the scope of telecommunications regulation, make the service sector more systematic and tighten regulation where necessary.

He said the authority would coordinate with the government to address challenges facing the regulator.

Ghimire also urged the media to monitor the authority’s activities and provide necessary suggestions and scrutiny.

He said the media should play a watchdog role to help keep the authority on the right track even when there was external influence or pressure during its activities.

Ghimire said the NTA would publicly disclose information about its activities every month.

NTA to recover Rs 8.05 billion in dues from UTL, directs Ncell to submit asset handover plan

NTA will recover Rs 8.05 billion from UTL after its licence was cancelled, while renewing five ISP licences, approving its 2026/27 budget and directing Ncell on asset handover.

Five internet service provider licences renewed

Annual budget and programme approved

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Ncell directed to submit asset handover plan

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