Huawei’s Bullying in 4G Expansion: Pressuring Project Clearance Without Connecting 6,000 Small Cells

It has been found that the quality of Nepal Telecom’s 4G network has been compromised due to failures in adhering to the contract for the 4G project, which involved an expenditure of 19 arba Nepali rupees. Despite significant investment, neither consumers nor the company have benefited as expected, and irregularities have been identified in the 4G implementation process.

The 4G project has been highly controversial since the tendering process. Quality has been affected due to the actions of the main supplier, the Chinese company Huawei.

A key component, costing around one arba rupees and essential for maintaining service quality, has not been installed. The necessary ‘small cell’ devices, crucial for enhancing the speed of 4G and 5G networks, were not connected.

Due to collusion between Nepal Telecom leadership and the supplier company, 70 crore rupees have been paid without completing the required work. China Communication Service International (CCSI) is identified as the main culprit in the irregularities surrounding Nepal Telecom’s 4G expansion, with Huawei being the primary contractor. The contract stipulated the installation of 6,000 small cell devices, but the company has failed to perform work valued at 70 crore rupees. Consequently, the quality of Telecom’s 4G service has deteriorated due to the non-installation of these devices.

Issues have emerged with the 4G service not functioning in underground areas and the top floors of tall buildings. The company is now indicating that it will not connect the small cells. According to the agreement, after completing the 4G infrastructure and other works, a study on coverage capacity was required before connecting the small cells. The initial study indicated that around 6,000 small cells needed to be installed, and the agreement was made accordingly.

Nepal Telecom has obtained frequencies from the 1800 and 2300 MHz bands for 4G. The small cells were meant for the 2300 MHz band. Despite the completion of all other 4G expansion works, clearance has not been given because the small cells have not been connected. Telecom Managing Director Sangita Pahadi stated that clearance has been withheld because the company did not install the small cells as per the contract for the 2300 MHz band.

The agreement with Nepal Telecom included the construction of 640 BTS towers and the installation of approximately 6,000 small cells within the 19 arba rupees budget.

According to company sources, the current leadership and high-ranking employees are afraid to speak about 4G because the authorities are investigating the installation of Chinese antennas by Huawei on the towers, which is contrary to the agreement. No one is willing to talk about small cell issues when employees are questioned.

Sources indicate that the connection of small cells is included in the bilateral agreement, valued at 70 crore rupees. The tender’s preliminary study specified that small cells should be installed at around 6,000 locations, specifically for the 2300 MHz band.

The agreement states that after the completion of the 4G expansion work, including the connection of necessary equipment and the commencement of service, the coverage and capacity of 4G would be studied, and small cells would be connected as needed. However, despite the completion of all other work for small cell connection, the study has not been conducted. The company is allegedly using lobbying and power to seek immunity without completing this task.

The company has already stated that it cannot connect small cells due to the US ban on Huawei, which has caused issues with small cell connectivity. The chips used in small cells are only available in the US, and the company claims it cannot proceed without them. The company, which compromised the quality of service by using Chinese equipment on towers where European/American-made antennas should have been used, is now attempting to avoid connecting the small cells.

Telecom employees assert that these companies are merely making excuses to avoid work. They suspect a scheme to obtain payment without fulfilling their responsibilities. Telecom now needs more than half an arba rupees to complete this work. If the connection is not made, there will be frequent quality issues with 4G in the valley. 4G does not work well on the lower floors of large buildings and underground.