The state-controlled operator Monday signed an agreement with Chinese telecom vendor Huawei for supply and installation of system for 4.8 million GSM lines. [break]Amar Nath Singh, managing director of NT, signed the agreement on behalf of NT and Lian Shi Cheng, commercial manager, and Rubhesh Jha, sales director, jointly signed the agreement on behalf of Huawei.
As per the agreement, Huawei will have to supply and install latest equipment for 4.8 million GSM lines within two years. NT will pay Huawei Rs 6.75 billion for the project.
“The vendor will also provide maintenance facility for five years after the new lines become operational,” Rajendra Nakarmi, deputy managing director of NT, said.
NT had awarded the tender to Huawei in October, 2011 after the latter quoted the lowest price.
“The agreement holds historical importance for NT as it is our largest project so far. After the new lines become operational, we will be able to provide GSM service as per the demand,” Singh said after signing the agreement. “I am hopeful that the project will be implemented in time and our customers will get advanced and quality service.”
As per the agreement, Huawei will start delivery of lines after four months. It will have to establish the basic system for 4.8 million lines by then.
Among 4.8 million GSM lines, around 50 percent is 2G lines, 45 percent is 3G lines and remaining will be LTE (Long-Term-Evolution) lines. The project area covers Kathmandu, Pokhara and Lumbini zone.
The second phase of GSM lines, which consists of the remaining 5.8 million lines, will provide service in the remaining areas. NT has awarded tender for the second phase to another Chinese vendor ZTE.
NT officials hope to sign agreement with ZTE in near future. “Negotiations are on progress,” he added.
Despite eight-month delay in implementation of the project, NT is hopeful of getting delivery of new GSM lines before it runs out of its stock of around 600,000 lines.
The project got delayed by three months after Commission for the Investigation of Abuse of Authority (CIAA) launched investigation into the tender process. It got further delayed due to unwillingness of the vendors to implement the project.
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