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NT to Finalise International Bandwidth Deal with China

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NT to Finalise International Bandwidth Deal with China
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June 20: Nepal Telecom (NT) is planning to finalise commercial deal regarding purchase of international internet bandwidth with China. Earlier NT had concluded project agreement and has accessed optical fibre connectivity with China.

Under the project agreement, successful trial of set devices has also been completed. Deputy Spokesperson of NT, Dilli Prasad Adhikari informs that NT has set target of sealing the deal within mid-July 2016. “Legal teams of both sides are studying the matter. Bandwidth will be commercially imported from China shortly,” he says.

Along with it, NT has become the first service provider to access fibre connectivity through Chinese path. The connectivity has also ended Indian monopoly on international bandwidth in Nepal. The to-be purchased bandwidth from China will be cheaper than the bandwidth purchased from India. Moreover, internet charge will decline in Nepal due to the competition between the bandwidths.

Commercial deal with China is expected to reduce internet charges in Nepal, says Adhikari. He also informs that Chinese bandwidth entering Nepal will not be impacted by the banning of websites including Google and Facebook in China. “Only Chinese path is being used for importing bandwidth. The international bandwidth will be purchased from Hong Kong that has global IT transit,” he explains. Operation of fibre network from north will increase the quality of internet services and decrease the latency period. It will significantly decrease outgoing amount spent for the purchase of international bandwidth by Nepal.

As internet service providers do not have their own network to reach worldwide digital network, they purchase bandwidth from international wholesaler service providers. Even though it is impossible to end dependency on international bandwidth, such dependency can be drastically reduced by producing ‘Local content’, says experts of IT sector.  Bandwidth is the service capacity that a user gets in a fixed amount of time. In Nepal, with the increase in internet users, service providers also increase link capacity of the bandwidth.

Presently, the international bandwidth cost USD 30-40 per MBPS which was USD 400 in 2010. The bandwidth price cost USD 4-5 per MBPS per month in UK and USA. Similarly, it cost USD 8 in Singapore. According to Adhikari, NT spends Rs 600-700 million per month for the purchase of international bandwidth. He also informs that NT consumes 50 percent of total bandwidth imported in Nepal.

NT has laid 90 KM optical fibre from Kathmandu via Galchi of Dhading, Dunche of Rasuwa to Rasuwagadhi, border of China. After connecting the optical fibre on last mid-June, technical teams of both countries had concluded fibre testing.

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