Imports by telecom companies soar due to expansion drive

IMPORTS of telecommunication equipment nearly doubled in the last fiscal year with telecom companies going on an expansion and upgrading spree. The Nepal

Telecommunications Authority (NTA) said these companies procured products worth Rs 8.54 billion in 2012-13. In fiscal 2011-12, imports of telecom products amounted to Rs 4.55 billion. As per the Telecommunication Act 1997, telecom operators have to get a recommendation from the NTA to import any kind of telecommunication equipment. The imported products include structures for transceiver stations, power equipment, mobile switching centres and base station equipment for maintenance, expansion and upgrading work, according to the NTA. Imports soared due to increased purchases by the big two - Nepal Telecom (NT) and Ncell. NTA officials said NT has been working on its mega project which aims to add 10 million GSM lines, while Ncell is working on capacity increment from 2G to 3G service network besides increasing service areas. During the last fiscal year, NT bought equipment worth Rs 5.18 billion, up 60 percent from the previous year’s Rs 3.23 billion, the NTA said. Ncell imported equipment worth Rs 2.44 billion, while Nepal Satellite Telecom procured stuff worth Rs 590 million. United Telecom Limited (UTL) and Smart Telecom bought equipment valued at Rs 200 million and Rs 110 million, respectively. “NT had sought a recommendation for the import of equipment from Huawei Technologies,” said Dipesh Acharya, NTA’s deputy director. China’s Huawei been awarded the contract for the 10 million GSM mobile lines project. NT said that they would be able to distribute new SIM cards under the mega project after one month in Kathmandu after completing the network preparation work. “We are installing new equipment at mobile towers in Kathmandu and the task will be finished in a month,” said Guna Keshari Pradhan, spokesperson for NT. Of the six telecom companies, only STM Telecom Sanchar, which is now known as CG Communications, did not buy equipment from foreign vendors. Besides, two satellite phone service providers, Constellation and I4 Technologies, also imported equipment worth Rs 6.7 million and Rs 600,000 respectively, said the NTA. OPERATORS IMPORTS Nepal Telecom Rs 5.18 billion Ncell Rs 2.44 billion Nepal Satellite Telecom Rs 590 million United Telecom Limited Rs 200 million Smart Telecom Rs 110 million