Normally, telecom companies import equipment to expand, replace old equipment and upgrade their service networks as such equipment are not available in the country. In the same period last year, the companies had imported equipment worth Rs 5.13 billion.
The Nepal Telecommunication Act 1997 requires licensees of Nepal Telecommunications Authority (NTA) to get recommendation from NTA to receive foreign currency exchange facility from the government for making payments for their purchases. In the review period, Ncell and Nepal Telecom (NT) received recommendations for exchange of foreign currency equivalent to Rs 1.71 billion and Rs 1.23 billion, respectively.
Structures for transceiver stations, microwave and power equipment, mobile switching centres, and base station equipment are some of the equipment that the companies imported in the review period. Ananda Raj Khanal, acting chief of NTA, said that the import of equipment this year contracted for companies like Smart Telecom, slowing their expansion plan.
“More investment in the telecom sector is yet to come, which will subsequently increase import,” said Khanal. Smart Telecom had obtained the unified licence in April last year, which allows it to expand telecom services nationwide. However, it has not been able to solve the share ownership dispute and boost expansion work.
NTA statistics show that Smart Telecom imported equipment worth Rs 7.86 million in the first eight months of this fiscal as compared to Rs 107.78 million in the same period last year. Imports by Ncell and United Telecom Limited (UTL) have also declined. Ncell imported equipment worth Rs 1.71 billion against an import bill of
Rs 2.02 billion, whereas UTL has not imported equipment this year.
On the other hand, with its mega project like ‘10 million mobile lines’, which is ongoing, NT’s imports
increased to Rs 1.23 billion as against Rs 868.64 million last year. Similarly, Nepal Satellite Telecom (NST)’s import has gone up as it is expanding its service, according to NTA officials. NST has bought equipment worth Rs661.12 million, up from last year’s Rs 593.75 million.
NTA officials said with Smart Telecom and UTL targeting nationwide mobile service and major operators — Ncell and NT — focusing on data service, investment and equipment import too are expected to rise. NTA record shows STM Telecom Sanchar, also known as CG Communications, has not imported any equipment since last fiscal. - See more at: http://thehimalayantimes.com/fullNews.php?headline=Import+of+telecom+equipment+slows&NewsID=411004#sthash.TSOl2XWJ.dpuf
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