UTL’s royalty dues soar
KATHMANDU, JUN 27 -
A new twist has emerged in the royalty row between the Nepal Telecommunications Authority (NTA) and United Telecom Limited (UTL), with NTA saying that UTL owes Rs 952.16 million in royalty dues.
According to the telecom regulator, royalty dues of UTL, the country’s first private telecom player, increased after the company submitted separate income details for its three services— basic telephone service, limited mobility and internet service. As per the NTA rule, telecom companies have to submit their income details separately for their each service.
NTA had earlier said UTL’s committed royalty dues from the basic telecom service stands at Rs 896 million. An additional Rs 56.16 million is for its limited mobility and internet services. “UTL’s royalty dues increased by Rs 56.16 million based on its income details,” said Kailash Prasad Neupane, spokesperson for NTA, adding that UTL is supposed to pay royalties separately for separate services.
Although UTL has been granted three separate licences for the basic telecom, limited mobility and internet services, it has been paying four percent of its income as royalty in bundle for all services against the license agreement.
As per the income details submitted to NTA, UTL has earned Rs 1.40 billion from the limited mobility service over the last five years. Based on these details, UTL has dues worth Rs 56 million for its limited mobility service. It has to pay Rs 160,000 for its data service (internet), as its total income from this service stands at Rs 4 million over the last five years.
NTA in March, in a letter, had asked UTL to submit its income details within three months to ascertain the exact amount of its royalty dues.
UTL had committed to pay Rs 1.24 billion as royalty for the basic telecom service for eight years (2002-03 to 2009-10). Of the committed amount, it has so far paid Rs 160.57 million and Rs 189.45 million was waived by the government for the loss it incurred during the service halt by the then royal regime.
For the basic telecom service, the licence agreement between NTA and UTL says the latter must pay the royalty amount, whichever is higher among the committed royalty fee while obtaining the licence or four percent of the total annual income, according to the NTA.
NTA and UTL are embroiled in the royalty row for quite some time now. Currently, the issue of basic telecom service’s committed royalty is being discussed in the Appellate Committee of Information Ministry. On April 28, UTL had approached the committee against the NTA’s directive issued on March 24 to clear the royalty dues within 35 days with a warning to scrap the operating licence.
Source: Kantipur
A new twist has emerged in the royalty row between the Nepal Telecommunications Authority (NTA) and United Telecom Limited (UTL), with NTA saying that UTL owes Rs 952.16 million in royalty dues.
According to the telecom regulator, royalty dues of UTL, the country’s first private telecom player, increased after the company submitted separate income details for its three services— basic telephone service, limited mobility and internet service. As per the NTA rule, telecom companies have to submit their income details separately for their each service.
NTA had earlier said UTL’s committed royalty dues from the basic telecom service stands at Rs 896 million. An additional Rs 56.16 million is for its limited mobility and internet services. “UTL’s royalty dues increased by Rs 56.16 million based on its income details,” said Kailash Prasad Neupane, spokesperson for NTA, adding that UTL is supposed to pay royalties separately for separate services.
Although UTL has been granted three separate licences for the basic telecom, limited mobility and internet services, it has been paying four percent of its income as royalty in bundle for all services against the license agreement.
As per the income details submitted to NTA, UTL has earned Rs 1.40 billion from the limited mobility service over the last five years. Based on these details, UTL has dues worth Rs 56 million for its limited mobility service. It has to pay Rs 160,000 for its data service (internet), as its total income from this service stands at Rs 4 million over the last five years.
NTA in March, in a letter, had asked UTL to submit its income details within three months to ascertain the exact amount of its royalty dues.
UTL had committed to pay Rs 1.24 billion as royalty for the basic telecom service for eight years (2002-03 to 2009-10). Of the committed amount, it has so far paid Rs 160.57 million and Rs 189.45 million was waived by the government for the loss it incurred during the service halt by the then royal regime.
For the basic telecom service, the licence agreement between NTA and UTL says the latter must pay the royalty amount, whichever is higher among the committed royalty fee while obtaining the licence or four percent of the total annual income, according to the NTA.
NTA and UTL are embroiled in the royalty row for quite some time now. Currently, the issue of basic telecom service’s committed royalty is being discussed in the Appellate Committee of Information Ministry. On April 28, UTL had approached the committee against the NTA’s directive issued on March 24 to clear the royalty dues within 35 days with a warning to scrap the operating licence.
Source: Kantipur
