Smart Telecom to Begin Services This Year

A new telecom company is soon making its foray in the market, taking up the number of telecom operators in the country to five. If things go as planned, Smart Telecom will launch basic telephone service within 2009, an official of Smart Telecom told myrepublica.com requesting anonymity.

Smart Telecom, which acquired the license to provide telecom services after depositing a fee of US$39,500, is a joint venture between Nepali, Singaporean and Israeli companies. Lal Sahu Distributions Limited of Singapore has 70 percent stake in the company, while Square Network Nepal and Gilat Satellite Networks of Israel have 20 percent and 10 percent shares, respectively.

As per the commitment expressed by the company during the time of acquiring the license, it will have to first introduce services in 398 VDCs in remote areas of western, mid-western, far-western and central regions.

Although the company has not yet finalized the locations from which it plans to begin its services, it has said it will install at least two lines in each of the VDCs that it sets its foot upon. After starting service in 398 VDCs, it will be allowed to expand its network to other parts of the country and introduce international call service as well.

"We hope the introduction of telecom services in the villages selected by Smart will fill in the vacuum created by country´s major telecom companies that usually do not pay attention to rural markets," said Kailash Neupane, spokesperson for Nepal Telecommunications Authority (NTA), the telecom regulatory body of Nepal. Currently, around 420 VDCs in Nepal do not have access to telephone services.

In order to deliver basic telephone services in rural areas, Smart Telecom will rely on VSAT (very small aperture terminal) technology. This technology is considered quite expensive compared to other wireless technologies like CDMA. But it is considered one of the best for countries like Nepal with difficult terrain as it offers very reliable service. The company is yet to fix tariff rates on its services.

Currently, four companies -- Nepal Telecom, Spice Nepal Private Limited, United Telecom Limited and STM Telecom Sanchar -- are providing telecom services in the country.