MTNL to exit Nepalese venture UTL

22 Sep 2014

The Indian telco Mahanagar Telephone Nigam Limited (MTNL) has performed an about-turn in Nepal and is now looking to offload its stake in the fixed telephony and broadband internet provider United Telecom Ltd (UTL). Just two months ago MTNL appointed an advisor to examine the possibilities of increasing its interest in the Nepalese firm. MTNL currently has a 26.68% stake in UTL, while Telecommunications Consultants India Limited (TCIL) and Tata Communications hold 26.66% each and Nepal Ventures Private Limited (NVL) has 20%. Reports from local press suggest that MTNL now sees its investment in Nepal as being commercially unviable, with NVL emerging as the most likely buyer for its shares. UTL became Nepal’s first privately owned telco in July 2003 when it was licensed to offer basic telecoms services in the country, but it has struggled to make an impact in the fixed line sector which is dominated by Nepal Telecom (NT).

Nepal, Mahanagar Telephone Nigam Limited (MTNL), United Telecom Limited (UTL)