United Telecom Limited

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United Telecom Limited is a joint venture between India’s Mahanagar Telephone Nigam Limited (MTNL), Videsh Sanchar Nigam Limited (VSNL) and Telecom Consultant’s India (TCIL) who will each hold a share of approximately 26.7%. The remaining stake will be held by Nepal Ventures Private Limited. Videsh Sanchar Nigam changed to Tata Communications, which acquired 45% in 2002 and the remaining share in 2008 from the previous owner, the Government of India. The company obtained a 10-year license for basic and international long distance services, including wireless local loop, in 2002 after paying a license fee of $1.3m. The company will pay 4% royalty on gross revenue and 2% as rural development fee. Total investment in the project is approximately $9m. The license is for an initial period of 10 years and a maximum of 25 years. Operations began in September of 2003. As of November 2003, it had distributed 7,000 lines and planned to sell 57,100 connections in one year. http://www.utlnepal.com/ http://www.nta.gov.np/en/content/index.php?task=articles&option=view&id=36 Investment in 2005-07 were calculating assuming a total investment up to 2007 of US$80 million.