Nepal, being a landlocked country, has limited reach with the outer world. With a population of over 30 million in such a small area, mobile penetration within the state is 100%, whereas only 50% for data services. The market leader, Nepal Telecom, has a market share worth 51%, which is followed by Ncell and Smart Cell, respectively. With the population growing at such a rapid rate, Nepal certainly requires better telecommunication services.
Binod Chaudhary, the sole billionaire of Nepal, who’s worth $1.7 Billion according to the Forbes Magazine, is an entrepreneur of Nepal having multiple investments. Proudly known as Chaudhary Group, he owns various noodle manufacturing companies in Nepal, India, Serbia, and Bangladesh. Besides, Chaudhary owns a bank, a telecommunication company already having services in rural Nepal, dozens of resorts, out of which the two recently acquired are located at the Maldives in partnership with Taj Group of India.
The Chaudhary Group has reportedly signed an agreement worth $100 million with Huawei, Chinese Telecommunication Company to start 4G services in Nepal. CG’s CEO said that they have no problem in signing a deal with Huawei based on the question raised regarding the US ban imposed on the company. The group has previously agreed with a Turkish Cellular Company, Turkcell to start CG Lifecell in Nepal as a privately-owned telecommunication company. They are now planning to give out 4G services using the infrastructures that will be provided by Huawei.
The infrastructures worth about $100 million are for the 4G network services; however, this can be used for 5G services as per necessity. The service will include free voice services; however, the key focus will be on online payment and cellular data.
Nepal Telecommunication Authority’s spokesperson, Min Prasad Aryal said that CG group had previously applied for an operator’s license for a wider region, to which he replied that if CG met the standards of the authority, they have no problem in providing them the permit regardless of whose infrastructure they use.
CG group plans to achieve at least one-third market share in three to four years since they’re introducing the latest technology to Nepal. The users in Nepal look positive towards this step and probably hope that they’ll get to enjoy the services as soon as possible.