World Bank approves loan for telecom sector reform
VDCs in Eastern Region to benefit

BY A STAFF REPORTER

Kathmandu, Dec. 12: The World Bank today approved a US $ 22.56 million loan to the His Majesty’s Government to help finance the Telecommunication Sector Reform Project in the country, stated a WB press release issued today.

The Project supports the implementation of the government’s sector reform agenda that includes the permission of private sector to provide all forms of value added services and enacting the Telecommunication Act aimed at creating a level playing field for all operators and increasing competition in this sector, among others.

"The government recognizes the importance of telecommunication to be a key factor for its economic and social uplift of the people," said Kehichi Ohashi, the WB Country Director in Nepal.

Ritin Singh, the WB team leader for the Project said that it would help to provide information to farmers regarding the prices of crops so that they can sell them at the right time. The project would also provide access to phones to the rural people and empower women there with business opportunities to generate income by selling telecommunication services.

The Project launched some years ago also aims at establishing regulatory agency and articulating an innovative rural access strategy and deciding to license a private rural operator to rollout services rapidly.

After the introduction of the multi-party polity in the country some one decade ago, the government had opened the door for the private sector involvement in basic, cellular and value-added services. The second private cellular license was awarded in March 2001 and private national operator was selected to provide service in May 2001 and over 65 new operators are authorised to provide value added services such as Internet, paging and data transmission.

The Project supports the licensing of a private rural operator through a market mechanism to provide telecommunication service in 534 VDCs in the Eastern Region, accounting for roughly 25 per cent of rural areas of the country without any access to telephone services.