Telcos import equipment worth Rs 4.5b
KATHMANDU, SEP 20 -
Telecom operators Nepal Telecom (NT), Ncell, Nepal Satellite and Smart Telecom imported equipment worth Rs 4.52 billion in the last fiscal year to expand and upgrade their networks. The imports include structures for transcriber stations, microwave and power equipment, mobile switching centres and base station equipment.
Imports by NT have increased while Ncell, Nepal Satellite and Smart Telecom imported fewer equipment, according to Dipesh Acharya, director of the Nepal Telecommunications Authority (NTA). Problems in procurement of microwave equipment and the wide coverage achieved with the use of basic apparatus could have resulted in a decline in imports.
NT’s import order has swelled as it has started implementing its new project on WiMax technology. The state-owned telecom company bought stuff worth Rs 2.40 billion in 2011-12, up from Rs 2.05 billion in 2010-11.
Ncell and Smart Telecom bought telecom equipment worth Rs 2.05 billion and Rs 58.30 million respectively, according to the NTA. The two operators had been forced to put their network expansion plans on hold for a long time due to delays in assignment of spot frequency.
In 2010-11, Ncell brought in equipment worth Rs 2.07 billion and Smart Telecom Rs 140.25 million. “Imports of equipment have come down comparatively as we have no frequency to expand service to further areas by installing new infrastructure,” said Subash Bajracharya, CEO of Smart Telecom.
Nepal Satellite imported equipment worth of Rs 6.02 million last year against Rs 71.38 million in 2010-11. UTL and STM Telecom did not buy any telecom equipment from the international market last year as per the NTA’s records.
“UTL did not ask for our recommendation for foreign currency exchange to import equipment,” said Acharya. According to NTA officials, UTL might have not imported new stuff because of the royalty row. For the last seven months, the NTA has stopped facilitating UTL for disregarding its orders.
Going by the Nepal Telecommunication Act 1997, any licensee of the NTA wishing to import equipment from abroad has to get its recommendation to get foreign exchange facility. Last year, five operators—NT, Ncell, UTL, Smart Telecom and Nepal Satellite—imported equipment valued at Rs 4.36 billion.
Source: The Kathmandu Post
