Wednesday, September 12, 2012

NT requests Ericsson to implement 5.2 million mobile lines

KATHMANDU, Sept 12, 2012

As uncertainty looms over timely implementation of Nepal Telecom´s (NT´s) 5.2 million GSM lines, the state-owned operator issued Letter of Acceptance (LOA) to Sweden based telecommunications solution provider Ericsson on Tuesday through a public notice and has also extended the deadline till September 25.

If Ericsson turns down NT´s offer, the only option will be to request Huawei, China based telecommunications solution provider which has already started the implimenation of 4.8 million GSM lines under ´Pacakage B´.

The ´Package A´ of 10 million GSM lines is yet to be implemented after China based ZTE refused to sign the pact at the cost as agreed earlier.

Although NT had issued LOA to Swedish telecommunications vendor last week, the operator has issued the public notice after the officials of Ericssion failed to show up at NT´s office to receive the letter. The legal requirement asks the bidder to receive the original copy, if not the public notice has to be issued.

A senior official at NT said, “Although Ericsson has not received letter, it has not rejected our offer.” The official said Ericssion has not given any opinion but their concern is over the price issue.“They have sent a separate letter asking us to reduce the cost which shows that they are interested in implementation the project,” the official added.

NT Spokesperson Gunakeshari Pradhan said the public notice was the part of legal requirement and the date of Ericsson to respond to the offer had been extended. “ The company will have to contact us till September 25 if it is interested in our offer, otherwise we will have to issue letter of intent to Huawei as per the conditions of the tender,” she said .

NT has agreed to provide implementation of ´Package-A´ of 10 million lines which means supply, delivery, installation and commissioning of 5.2 million GSM lines at the cost of US $ 122 million, the price quoted by Huawei.

The other Chinese vendor, ZTE had agreed to provide the service at similar rate but NT was forced to terminate the agreement with ZTE after it continued deferring the date of final agreement. The operator has also seized ZTE´s bid bond of Rs 420 million on August 28, before issuing letter of intent to Swedish vendor.

Under the Package-A, NT plans to distribute 2G, 3G and 4G lines in mostly rural and hilly areas of Central, Eastern, Far-Western and Mid-Western Region. The Package-B which consists of 4.8 million lines and being executed by Huawei is mainly targeted to fuflil the demand of urban areas including Kathmandu and Pokhara.

Source: Republica

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