Kathmandu, Sept. 12 -- United Telecom Limited's licence has legally lapsed after the company failed to pay its renewal fee and outstanding dues by the September 4 deadline. But the Nepal Telecommunications Authority has yet to issue the formal notice confirming the cancellation. UTL's case raises a basic question: what does a telecom licence actually give a company and what does it owe the state in return?

Here are five key questions answered.

1. What does a telecom licence actually allow a company to do?

A telecom licence is the government's legal authorisation for a company to provide specified telecommunications services in Nepal. It allows an operator to establish and run a telecom network and provide services using resources regul...