Smart Telecom has sought permission to import telecommunication equipment worth over Rs one billion and for spot frequency from the Nepal Telecommunications Authority (NTA). The move is targeted to expand its mobile service after launching it in the Kathmandu Valley.
With a plan to soft launch the service in the Valley before Dashain based on unified licence, the company is planning to install 200 plus base transceiver station (BTS). Hence, the company has requested the NTA to give clearance for equipment import and micro wave frequency that establishes connection between mobile towers in locations where there are no optical fibres or satellite links.
“Smart Telecom’s application to import equipment is under consideration,” said Dipesh Acharya, deputy director of NTA. The authority’s record shows that the company had procured telecom equipment of Rs 7.86 million during last fiscal year, 2013-14.
Originally, the company had obtained the licence as a rural telecommunication service (RTS) operator with a mandate to take at least two lines of phone services each in 398 village development committees of central, western, mid-western and far-western regions of the country. In April last year, it acquired unified licence, which allows operation of multiple telecoms services nationwide, including GSM mobile service with a single licence.
While issuing the licence, the company was also put a condition that required it to bring all the BTS that were installed in the government designated areas, as per old licence criteria, into operation within three months. At that time, it had a total of 171 BTS, out of which 11 were under construction and many were not in operation due to lack of electricity in those areas.
A source at NTA said that they will decide regarding Smart Telecom’s request after conforming if the latter fulfilled the preset conditions. Initially, the company had targeted to launch its service in the Valley before festive season last year by installing required mobile towers. However, it had failed to do so due to internal dispute regarding share ownership.
“The dispute has been pretty much settled now. That’s why we are preparing to expand services from Kathmandu,” said Pawan Shakya, corporate communications head of Smart Telecom. He added that the company will launch services in Kathmandu and garner around 300,000 customers before gradually going nationwide.
So far, the company has invested around Rs 3.5 billion in expanding its service networks.
Being the major market, the Valley has domination of voice services provided by other three telecom companies — Nepal Telecom, Ncell and United Telecom Limited (also the aspirant of unified licence). Shakya said that besides the service expansion, they are also working over a plan to be more competitive in the market by roping in a strategic partner.
Last year, Smart Telecom had floated a plan to invest more than Rs 28 billion for service expansion, which included more than Rs four billion for the Valley. The NTA source said that since the penetration rate is high in the Valley compared to other areas, Smart Telecom’s presence will intensify competition, while other operators will come up with attractive schemes to retain their customers.
