UTL Sold for 17 Arab Rupees

All the shares owned by United Telecom(UTL) have been purchased by large business groups of Nepal.

India had the largest ownership of the shares of UTL. 26.38 percent of the share was owned by the Telephone Nigam Limited, Government of India. Similarly, 25.66 percent of the share was owned each by both the Telecommunication Consultants India Limited, Government of India and an Indian company, namely TATA Communications Limited. 20 percent of the remaining shares were owned each by Upendra Mahato and Nepal Ventures Private Limited.

A deal has been made to sell all the shares of UTL to Bishal group, Jawlakhel group, Prabhu group, Jyoti group, IMS group and Upendra Mahato group.

UTL informed that the new group will be buying UTL at 17 Arab worth of Nepali rupees. Also, 40 percentage of the share will be owned by Upendra Mahato and 60 percentage by the remaining group. UTL said that it will distribute the shares to the groups as well as pay taxes to the government as soon as all the legal business with India is concluded.

UTL has always remained at loss since its establishment 16 years ago. Although the government had decided to give unified license to UTL four years ago, it took the unified license under the provision of Telecommunications on Bhadra of last year, after it paid 20 crores in installments.

At present, UTL provides services based on limited mobility technology to about a hundred and ten major cities of 40 districts of Nepal. UTL informed that it would provide other services as well after the establishment of new management.

According to Nepal Telecommunications Authority(NTA), 5 lakhs 26 thousand 869 customers use UTL voice service and 63 thousand use data service.