Monday, June 25, 2012

Huawei, NT sign multi-billion project

Nepal Telecom and global ICT solutions provider Huawei of China today signed a multi-billion project agreement that will help Nepal Telecom (NT) add 4.8 million Global System for Mobile Communications (GSM) line.
"It is the largest project ever taken by the company," said spokesperson of the telecom Surendra Prasad Thike. "The Rs 6.75 billion project will also help enhance the Quality of Service of GSM mobiles of the Nepal Telecom."
Huawei will now be responsible to install the state-of-art technologies to add 4.8 million GSM line and to ensure successful operation of the technology, Thike said, adding that the Chinese telecom equipment manufacturer Huawei will have to complete equipment installation within two years from the signing date of the project.
Huawei will also be responsible to carry out maintenance work of the equipments for the five years after the equipments will go to the operation, he said.
Nepal Telecom — the Nepal Stock Exchange (Nepse) listed company that has a market share of 46 per cent — had selected Huawei for the first phase of the project, under which it had agreed to supply equipment and install system for 4.8 million GSM lines.
At a time when Nepal Telecom is being criticised for delaying in execution of the projects, both the representatives from Huawei and Nepal Telecom said that they would complete the project within the stipulated time.
"Huawei has more than 10-year long business partnership with Nepal Telecom,” the telecom quoted chief executive officer of Huawei Bill Yang as saying. "It will complete the project within the given time frame in professional manner."
The Chinese company will be liable to install all equipment in the first phase — within 120 days of the beginning of the project — that will help Nepal Telecom expand its subscriber base, according to the Nepal Telecom.
However, the agreement between the state-owned telecom giant and global telecom solution providers took longer to finalise the terms and conditions.
Reportedly, Nepal Telecom had issued letter of intent to Huawei after Huawei and Nepal Telecom failed to sit for negotiations to finalise terms and condition to supply and install equipments for its ambitious expansion drive. The agreement amount was also one of the key issue as Huawei, earlier, had quoted the lowest price of Rs 5.7 billion to complete the task.


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