Mahanagar Telephone Nigam Limited (MTNL) is planning to sell its stake in its Nepal-based venture, United Telecom Limited (UTL). The operator’s proposal of the stake sale is currently being examined by the Department of Telecommunications (DoT). MTNL has thus decided not to infuse any fresh equity into UTL. Earlier, the company had appointed SBI Capital Markets to evaluate the feasibility of further investments in UTL.

UTL is a joint-venture between MTNL (26.68 per cent stake), Telecommunications Consultants India Limited (TCIL) and Tata Communications with 26.66 per cent stake each and Nepalese firm Nepal Ventures Private Limited (NVL) with 20 per cent stake.

It was incorporated in 2001 and the company offers service in 44 out of about 75 districts in Nepal. UTL has a market share of two per cent in voice telephony, with about 500,000 cutomers. It also offers landline telephony services, which has seen decline in users due to advent of mobile telephony business.