Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Telecom’s billing system has once again collapsed, disrupting data services and certain postpaid mobile connections, exposing deep-rooted vulnerabilities in the state-owned operator’s core ICT infrastructure.
According to officials, the outdated billing platform supplied years ago by Chinese company AsiaInfo has suffered repeated breakdowns, leaving subscribers without reliable access to services.
“AsiaInfo’s billing system has become too old. Its frequent glitches are directly affecting mobile and data services. The system must be replaced, but the billing tender process itself has stalled due to political and geopolitical disputes,” a Telecom employee told said.
Minister Orders Tender Suspension
The controversy deepened after newly appointed Minister for Communication and Information Technology Jagdish Kharel instructed Telecom to suspend the long-awaited billing system tender on the eve of opening technical proposals.
A senior Telecom official confirmed, “The minister ordered us to halt the tender process, citing concerns over disputes in the technical evaluation. Based on his instruction, we issued a suspension notice.”
Geopolitical Tensions at the Core
Sources indicate the suspension is tied to geopolitical tensions between the U.S. and China. The U.S. Embassy in Kathmandu has reportedly expressed serious concerns over Chinese dominance in Nepal’s telecom infrastructure, particularly in core networks and billing systems, which provide access to sensitive national data.
Washington has been lobbying Kathmandu to bring in an alternative, non-Chinese vendor for the critical billing upgrade. However, when the project’s cost was estimated at NPR 5.5 billion (around USD 41 million), no American company submitted bids.
Only Chinese Bidders Remain
As a result, only Huawei and Whale Cloud, two major Chinese technology firms, participated in the tender. Sources say Telecom was prepared to select Huawei based on technical evaluations this week before Minister Kharel’s directive stopped the process.
Risks for Telecom and Nepal’s ICT Sector
Industry analysts warn that the uncertainty surrounding Nepal Telecom’s billing replacement threatens not just customer service but also investor confidence in Nepal’s telecom, ICT, and digital economy sectors.
The state-owned operator continues to face mounting pressure:
Service reliability: Old billing systems repeatedly disrupt data and postpaid mobile services.
Geopolitical friction: The U.S. opposes Chinese telecom dominance, but no Western firm is competing for contracts.
Investment environment: A stalled NPR 5.5 billion billing project highlights bureaucratic and political hurdles that discourage large-scale FDI in Nepal’s ICT sector.
Telecom insiders fear the suspension will further delay modernization, deepening customer dissatisfaction and leaving Nepal’s largest operator vulnerable in the era of 4G expansion and upcoming 5G rollout.
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