10M GSM MOBILE LINE PROJECT
KATHMANDU, JAN 12 -
Nepal Telecom and Chinese telecom equipment vendor Huawei Technologies are taking more time to sign a contract for Package A that consists of installing 5.2 million GSM lines under the NT’s mega project of adding 10 million mobile lines. The delay is due to both the sides failing to agree on the issue of ‘managed service’.
As per the bid condition, the vendor winning the contract has to provide managed service for the initial period of five years for the maintenance of the network installed. Huawei had agreed to provide maintenance facility for five years after the new lines become operational when it was given the contract for Package B in June last year.
NT had officially invited Huawei to sign the contract for the new lines issuing an LoA in the third week of December, 2012 and had given 15 days to sign the contract. Normally, the NT signs such contracts within two weeks of the issuance of the letter of acceptance (LoA).
“Both the sides had started negotiating the package since December 23,” said an NT source. “However, NT has not been able to reach a conclusion with the vendor, seeking reconsideration of mainly the managed service component.”
Managed service is one of the major components of both packages of the mega project. According to NT, there will be no reconsideration in any components of the request for proposal for supply, installation of equipment and commissioning of the 5.2 million new lines.
“Since the project is a big one, it is taking some extra time than expected for negotiation and agreement,” said NT spokesperson Guna Kesari Pradhan. She added that NT as a buyer would bargain with Huawei for providing more products and services.
Huawei had quoted US$ 122 million for Package A in the tender called last year. The package also includes 4.5 million 3G lines and 500,000 4G service lines. In June last year, NT had signed a contract with the Chinese company for Package B for US$ 85 million.
NT has been planning to distribute 10 million mobile lines under packages A and B within 2015. Package B targets customers in Kathmandu and the western region of the country while Package A is for eastern, central, mid-western and far-western regions.
Source: The Kathmandu Post
