NT, Saudi Telecom to Join Hands Tariff on Calls to Come Down

Nepal Telecom (NT) will soon sign an agreement with Saudi Telecom of Saudi Arabia, which is expected to give respite to Nepalis paying huge amounts while making calls to and from one of the largest Nepali workers absorbing country.

Under the agreement, both the telecom companies will link each other´s network via optical fiber cables.

NT has already laid optical fiber cables along the East-West Highway. These cables are linked with those installed by BSNL, Airtel and Tata Communications of India. The cables installed by all three Indian telecom companies, on the other hand, are linked with optical fibers laid by most of the telecom companies around the globe.

"We will basically make use of one of the networks to link our network with that of Saudi Telecom´s," a high-ranking official of NT told myrepublica.com on condition of anonymity. To get this access, Nepal´s telecom giant is currently negotiating with all three Indian companies on rental charges. It will sign the agreement with the company that offers NT a better rate.

"The rental charges on optical fiber network will not be as high as in the case of satellite network. This will help reduce our operating cost," the source said.

At present, NT and Saudi Telecom are both using satellite links to place calls on each other´s networks. Rentals on these mobile communication devices are generally high, making tariff rates on calls made to and from Saudi Arabia expensive.

Currently, NT charges Rs 50 for per minute of call to Saudi Arabia. Even on the budget call option, customers have to pay Rs 25 per minute.

"But once we sign the agreement, we will get the leverage to reduce tariffs," the source said. "This will provide relief to Nepalis in Saudi Arabia to call home and give respite to their family members who have to pay huge amounts to call them.”

NT has, however, clarified that optical fiber cables will not completely replace the satellite link.

"The satellite, which is currently being used to hook up networks of the two telecom companies, will also be in place even after signing the pact. But the optical fiber connection will provide a better alternative to the existing connection," the source said.