Chaudhary Group inks deal with Huawei to launch 4G services in Nepal; initial investment estimated at $250 Million

Chaudhary Group is all set to bring 4G services to Nepal after it signed a deal with Chain’s Huawei Technologies worth about $100 Million.

Following the footsteps of Reliance Industries Limited’s Jio, CG plans to take the telecommunication market by storm with an initial investment of $250 Million in the new 4G network. The services will include free voice but focus on data, online payments and other services.

For the launch of 4G service, Huawei would supply equipment worth $100 Million. The service can be later upgraded to 5G.

Although US has lifted its ban on Huawei, it has advised its allies to reject Huawei technologies arguing it could by vulnerable to Chinese eavesdropping. However, Huawei is a still a major competitor for 5G equipment deals around the world, denying the allegations put by the US.

While Huawei will be providing the infrastructure, Lifecell, a subsidiary of Turkey’s Turkcell, will provide the technical and design services to CG as per the deal made.

Moreover, CG hints at setting up a venture in the cement industry with a Chinese manufacturer adding that collaboration with Chinese companies has never been an issue.

Spokesperson for Nepal’s telecom regulator, Min Prasad Aryal said that CG has applied for license of much wider network including cities adding that the telecom sector will have no objection if the specified standards are met.

CG is already running telecommunication services in some rural areas.

The mobile penetration of the country is estimated to be 100% while that of data services is only about 50%.

Source: Reuters