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UNITED TELECOM LIMITED |
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UNITED TELECOM LIMITED |
Boost In Investment Despite adverse economic
situation, a major joint venture investment in telecom starts operation By SANJAYA DHAKAL The three-decade-long monopoly over the
telecom sector of the state-owned Nepal Telecommunications Corporation (NTC) finally came
to an end after the joint venture United Telecom Limited (UTL) formally announced its
entry into the Nepalese market last week.
Kamal Thapa, Minister for Information
and Communications, Local Development and Health and Arun Shourie, Minister for
Communications, IT and Disinvestment, government of India, jointly inaugurated the UTL
service amid a function in the capital on September 10. The UTL is a joint venture among Indian
telecom giants Videsh Sanchar Nigam Limited (VSNL), Mahanagar Telecom Nigam Limited
(MTNL), Telecom Consultants India Limited (TCIL) and a Nepali partner – Bishal Group
(NVPL). All the Indian partners of the UTL are
prestigious players in the Indian telecom field. Together they have invested around a
billion rupees in this venture. “We have the equity share of 26.66 percent or Rs
233.2 million in UTL,” said G.D. Gaiha, chief managing director of TCIL and a
director of UTL. Indian Minister Shourie who flew to
Kathmandu specially to inaugurate the UTL service said the venture was another milestone
in the Indo-Nepal relations. “It is good to know that Indian joint ventures like
Nepal Lever and Dabur Nepal are doing well here. The UTL will widen the spectrum of
economic relations,” he said. Shourie said that opening up the telecom
sector to private players would result in immense benefits for consumers. “In India
we have seen that rates of cellular calls fell from Rs 16 per call to Rs 2 per call in the
last two years due to competition,” he added. The technology adopted by the UTL called
Wireless in Loop (WLL) is said to be especially useful for countries like Nepal where
there are difficult terrains and settlements are scattered. According to minister Kamal Thapa, only
1500 out of total 4000 VDCs in Nepal are linked by telecom. “There are 200,000
applicants waiting to get lines from NTC. So, the UTL’s service will be greatly
welcomed by them,” he said. “The UTL is committed to provide world
class service to Nepalese clients,” said N.R. Mukharewale, chief executive officer of
UTL. The UTL will be providing WLL-based
telephony service. In the first year of its operation, the UTL will provide 50,000 new
wireless connections in Kathmandu Valley. At present, there are over 200,000 applicants
for the new connection with the NTC. The UTL expects to lure these applicants. Within
three years, the UTL plans to expand its services to all major towns in the country. And
within ten years, it plans to expand its services to half a million connections. The UTL had been awarded the license to
operate WLL by the Nepal Telecom Authority a year ago. “The UTL is committed to bring
telephone service within reach of all Nepalese. We will also be providing job
opportunities and world class service,” said Narendra Sharma, chairman of UTL and
chief managing director of MTNL. “The technology we have used is most secure and
utilization of frequency spectrum is our major advantage.” The UTL uses telephone sets and other
equipment from Korean company LG electronics. It currently has 40 stations and promises to
provide connection within 72 hours of applying for the service. The analysts and observers have welcomed
the entry of UTL in the Nepalese market saying that it could lead to better services in
reasonable prices. At a time when the country is reeling under the adverse economic situation caused by instability, the entry of a huge investment also provides fillip to the sagging economy. |
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