There is apprehension about the step, given its long term security implications, the newspaper claimed. It cited an official to argue that the decision could mean a virtual free run for Chinese companies that have links to the Chinese establishment on the communication network of Nepal.[break]
Nepal Telecom, the government-controlled telecom monopoly, awarded the contract for installing the Next Generation Network (NGN) in August to two Chinese telecom firms, ZTE Corporation and Huawei. ZTE would install the equipment for NGN in Kathmandu Valley while Huawei would do so in the rest of Nepal. According to details, the two companies would complete the project, estimated at $19 million, in six months time.
According to sources, Nepal Telecom had with government approval called a global tender for NGN. At least 10 international companies took part in the tender. But only four were shortlisted, and from them the two Chinese firms were selected, it further reported.
ZTE and Huawei would erect some 2,500 towers all over Nepal, in addition to the 700-odd towers of Nepal Telecom already in operation for CDMA network.
According to the plan, Nepal Telecom plans to extend its existing Evolution Data Optimised service on advanced CDMA technology which is at present available only in Kathmandu, Banepa and Pokhara. It would be extended to other cities and rural areas. Nepal Telecom is also introducing Voice Over Internet Protocol services, the newspaper said.
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