Once the networks of two telecom companies are linked, NT can use the optical fiber cables laid along the Araniko Highway to transfer voice and data traffic to China. In the same manner, NT can also receive voice and data traffic from China.
"We are currently negotiating with the Chinese telecom company on prices," Surendra Prasad Thikey, spokesperson of NT, told myrepublica.com. "We hope we will be able to reach an agreement soon."
One of the benefits of linking the networks of two telecom companies is the remarkable improvement in quality of voice service. Currently, NT and China Telecom are using satellite to place calls on each other´s networks. "On calls made via satellite, voices usually crack and echoes can also be heard," Thikey said. "But once agreement is reached with China Telecom, there will be much more clarity in voice service."
Tariff rates on calls made to and from China are also expected to come down after the networks of two telecom companies are linked.
Although budget call tariff for China has already been reduced to Rs 8 per minute, NT expects to offer much better voice service at around the same price, once it gains access to China Telecom´s network via optical fiber cables.
Another benefit of linking the two networks is the leverage it gives to NT to establish a transit communication route between China and India. Since the optical fiber cables laid by NT along the East-West Highway is already connected with optical fiber networks of some of the Indian telecom companies, NT can take advantage of this route to channel calls and data originating in India to the Chinese network via Nepal. Likewise, NT can also allow Chinese telecom companies to use optical fiber network laid in Nepal to transfer voice and data traffic to India.
"In return for allowing them to use our route, we can always charge some rental fee, which will open another income generating source for us," Thikey said.
Linkage of NT´s and China Telecom´s networks will also make it easier for Nepal´s telecom giant to penetrate into other East Asian countries.
"Using China Telecom´s network, we can reach Japan, South Korea and even Hong Kong and Taiwan, as the company has already established links with many telecom companies of those countries and Chinese territories," Thikey said. "This will help us reduce tariff rates on calls made to those countries or coming in from those countries."
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