NT asks Huawei to expand contract to 10m GSM lines

28 Sep 2012

State-owned Nepal Telecom (NT) has sent a letter of intent (LoI) to China’s Huawei Technologies, offering the vendor a contract to install mobile network capacity for 5.2 million GSM lines which two other technology providers turned down, reports Nepalese newspaper Republica. Earlier this month, NT was forced to cancel its original contract with another Chinese equipment supplier, ZTE, for the 5.2 million GSM line deployment (labeled ‘package A’) and was subsequently turned down by Ericsson of Sweden when it offered it the opportunity to take up the order. Huawei has already accepted Package B of the project, after signing an agreement with NT to install 4.8 million GSM lines by 2015. ZTE pulled out after NT refused its request to raise the cost for implementing Package A. ‘As Huawei has already started implementing its portion of 4.8 million GSM lines, we are optimistic it will accept the offer to install the remaining lines as well,’ an NT official said. Package A involves rolling out 2G, 3G and 4G lines in rural and hilly areas of central, eastern, far-western and mid-western regions of Nepal by 2015.