Nepal Telecom claims Huawei broke exclusivity pact

12 Nov 2012

The Himalayan Times reports that Chinese equipment vendor Huawei has inked a contract with Ncell just two months after allegedly agreeing exclusivity with rival operator Nepal Telecom (NT). Huawei reportedly signed a declaration letter stating that it would not engage in any new telecoms business in Nepal until it had completed rolling out 4.8 million GSM/W-CDMA lines under package ‘B’ of a ten million line expansion project for NT. However, according to a source at NT, Huawei breached its promise when it agreed a deal with NT’s wireless rival Ncell on 17 October. ‘The issue is that Huawei defied Nepal Telecom’s contract clauses in a tangible manner,’ the source told the newspaper. The management of NT is reportedly weighing up its options. ‘Nepal Telecom is at the receiving end at present since it has to expand the GSM lines at any cost to be competitive,’ said Sunil Kumar Mishra, the president of the National Employees’ Organization of Nepal, Nepal Telecom (NEONNT), before adding: ‘On one hand, if Nepal Telecom seeks clarification from the vendor, it will hurt its market expansion drive, but on the other, the bid document in the future will just be a formality and bidders will start flouting terms and conditions if it does not take action against Huawei.’