Under Threat

As all-round attacks against Nepal Telecom continues from different vested interest groups, Nepal ’s oldest and largest government entity is struggling to survive

By A CORRESPONDENT

From a private-owned Mero Mobile, a joint venture of Russian billionaire of Nepali origin Upendra Mahato, who is also a shareholder in Kantipur Television - which currently represents an anti-establishment media, and Kumar Raj Bahadur Singh, son-in-law of King Gyanendra to the United Telecom Limited (UTL), a joint venture of India, all seem to be in a mission to destroy state-owned Nepal Telecom.

Recently, in response to a public interest litigation, which was reportedly backed by Mero Mobile and UTL, Supreme Court (SC) issued a stay order against Nepal Telecom not to distribute wireless telephone.

Nepal Telecom – which annually pays more than Rs 6 billion revenue to the government – has already purchased equipment worth billions of rupees for operating wireless telephone. Thanks to the stay order by the Supreme Court – which issued show cause notice in a public litigation case on the detention of former prime minister Sher Bahadur Deuba who has already filed petition against Royal Commission for Corruption Control – and its denial to issue any other order to allow Nepal Telecom to install wireless telephone, the NT is in a limbo.

Although the government has already declared that it will encourage Nepal Telecom to go for competitive environment, the private sector like Mero Mobile is pressing NT to provide its infrastructures with minimum cost.

Following six months of suspension of mobile telephone and weeks-long suspension of other telephone services in the aftermath of February 1, Nepal Telecom has already lost billions of rupees of its income. As the pressure is mounting on NT to allow Mero Mobile to use its infrastructures in nominal rent, it is set to lose billions of rupees in revenue.

As pressure is mounting on the management of the Nepal Telecom to make deal with Mero Mobile, it is certain that Nepal Telecom’s management will be compelled to sign agreement on Mero Mobile’s terms.

The recent meeting chaired by Minister of Information and Communication Tanka Dhakal has already taken the progress made by Mero Mobile as hundred percent achievements in its annual program.

In other countries of the world, private companies pay money in accordance with the market price. It seems that the operators of Mero Mobile, combination of investors with diverse interests, will finally take control of Nepal Telecom’s infrastructures.

Like other countries in the region, Nepal also needs to open its telecom sectors to the private parties but it must be allowed in accordance with the competitiveness and business practice. “We are ready to compete with any private company in accordance with international business norms,” said a senior official at Nepal Telecom. “We have competitive manpower to compete with private sectors including the major joint ventures like United Telecom Limited.”

At a time when Nepal Telecom is struggling to get fair justice, it is uncertain what will be the future of Nepal ’s largest government undertaking, which pays billions of rupees as an annual tax.

It has already knocked the door of apex court seeking the justice to do fair and competitive business and offering similar kinds of challenges to the private sector.

Whether it is just a coincidence or something else, quality of Nepal Telecom’s mobile service is getting worse of late. How will Nepal Telecom survive in an attack coming from within and outside remains to be seen? Many supporters of present form of government blame previous governments for selling the government industries in throwaway prices. How the present government proves itself different also remains to be seen.