Telecom Now Responsible for Not Awarding Huawei Billing Contract, Minister Kharel Steps Back

Kathmandu: Nepal Telecom’s highly debated billing system procurement contract will now move forward. After public concerns were raised about the procurement process, the study committee led by former Secretary Maniram Gelal, formed through a ministerial decision, has concluded that the ongoing contract process should not be interrupted.

Telecom had halted the billing contract after completing the technical evaluation. Among the proposals submitted by Huawei and Whale Cloud, only Huawei was found technically eligible.

Jagdish Kharel, Minister of Communications and Information Technology in the new government formed after the Gen-Z movement, created the committee, saying a review was necessary before opening the financial proposal due to growing concerns. After receiving and reviewing the report, Minister Kharel said Telecom’s autonomy would be respected and that the ministry would not interfere in the billing procurement process. This opens the way for Telecom’s management to proceed with the remaining contract steps.

Telecom had issued a tender on March 18, 2025, to procure a new billing system worth about five billion rupees. Among the two bidders, only Huawei passed the technical evaluation.

Huawei’s financial proposal was originally scheduled to be opened on September 24, 2025. However, after Minister Kharel assumed office, it was postponed indefinitely, citing special circumstances.

Why Did Questions Arise Over the Contract?

The billing contract became controversial from the moment bids were announced. Critics argued that the process appeared designed to award the contract to a single company, suppressing fair competition. Questions were also raised about whether the procurement violated a Supreme Court directive.

The court had previously ruled that awarding the billing contract to a company already handling Telecom’s core network would create a conflict of interest and pose information security risks. The ruling emphasized that the core network and billing system should not be handled by the same supplier.

Questions also emerged that choosing Huawei alone under the “qualified” label would effectively lock out other vendors (vendor lock-in). Telecom has been using a billing system from the Chinese company Asia Info since 2011.

After the three-year agreement with Asia Info expired, Telecom was required to invite new bids. However, the same company continued receiving repeated extensions under the label of “maintenance.” Alleging irregularities, the Commission for the Investigation of Abuse of Authority filed a corruption case at the Special Court against then-Managing Director Sangita Pahadi Aryal. The case remains under review.

Because Asia Info’s billing system is outdated, Telecom’s services have suffered frequent disruptions, drawing widespread criticism.

 

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