As preparations intensify to bring in a third telecom operator, efforts are underway to revoke United Telecom Limited (UTL)'s license. The proposal to cancel UTL's license has reached the board of the Nepal Telecommunications Authority (NTA).

The NTA has presented the proposal to revoke UTL's license to the board, citing that the company still owes about Rs 7.5 billion in dues.

After the Supreme Court dismissed all the writ petitions filed by UTL against the government in February 14, 2024, the NTA issued a 15-day ultimatum on June 8, 2023 to pay the dues. Five months after the expiration of the ultimatum, the proposal to revoke UTL's license has reached the board of the NTA.

An NTA source stated that the proposal to revoke UTL's license was presented to the board before Tihar. However, there is no immediate plan to hold a board meeting.

The Chairman of the NTA, Bhupendra Bhandari, has left for India on Sunday to attend a program of the International Telecommunication Union (ITU). A board member of the NTA said that Chairman Bhandari will return on Thursday, and only after that will the board meeting be held. The board of directors will make the decision on whether to revoke UTL's license or not.

United Telecom, which obtained a basic telephone service license on September 5, 2016, still owes Rs 7.43 billion, including fees for license renewal, frequency, royalties, and the Rural Telecommunications Development Fund. This amount is due by May 2024 which continues to increase as UTL has not paid its dues.