NT to form new company to share telecom infrastructures; set up office for IT company

KATHMANDU, June 25 : Nepal Telecom (NT) is preparing to establish a separate company to oversee issues related to telecommunication infrastructures.

The state-owned telecom operator formed a study team for the purpose on Wednesday. The new company could be established within 2014.

Anup Ranjan Bhattarai, managing director of NT, said the proposed company would help telecom operators to share infrastructures and thus minimize investment. “We will have 4,000 new Base Transceiver Stations (BTS) that will help to establish connectivity at affordable prices,” said Bhattarai.

NT is installing around 4,000 new BTS. It is estimated to cost Rs 20 billion.

According to Bhattarai, NT will have 50 percent stake in the proposed company. “Remaining shares would be sold to other telecom operators and interested business houses,” he added.

Along with sharing infrastructures, the proposed company will work jointly with other operators to lay optical fiber networks.

Once the infrastructure company comes into operation, it will offer best and international standard telecom infrastructure to operators without much investment, according to NT officials.

The infrastructure sharing model enables the operators to convert their capital expenditure to a fixed and predictable operational expenditure and allows them to divert precious capital towards core activities. “In this way, the companies can provide their services at cheaper cost, thereby reaching to all class of people,” said Bhattarai.

The company will provide passive infrastructure solutions to telecom service providers and help in adding value to the service they provide by optimizing cost structure and enhancing reach.

It will be more beneficial to new companies as the new player in the telecom industry will not have to spend much in infrastructures. The company helps the operators in the initial phase to construct rapid coverage and enable them to put into operation widespread and cost effective coverage, the officials added.

Nepal Telecom (NT) will start works to set up office for the proposed IT company from next week.

Anup Ranjan Bhattarai, managing director of NT, said the state-owned operator has formed a taskforce to establish the company. “The taskforce will prepare prospectus and bylaws of the company and register it very soon. Once the company is registered, it will start the process of issuing primary shares to general public,” Bhattarai said.

NT is also looking to induct strategic partner in the proposed company. Though many Nepali companies are interested to join hands with NT, the state-owned operator is looking to join hands with foreign partner.

According to sources, NT will leave the company after inducting the strategic partner.

NT has also already sought Request for Proposal from companies interested to be its partner in the proposed IT company.

(Source: Republica)