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Mid-Hill Optical Fibre Network Faces Service Provider Selection Delay

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Mid-Hill Optical Fibre Network Faces Service Provider Selection Delay
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November 6: Nepal Telecommunication Authority (NTA) is extending the period of selecting service provider in order to set up optical fibre network at provinces no 4 and 5. NTA extended additional one month period citing economical and technical preparation for the service providers.

The Authority had invited application from interested service providers to lay up optical fibre network in the provinces no 4 and 5 on last September 29. As per the scheduled plan, service providers were given time till November 11 to submit sealed auction tender. However, at the last minute, the telecommunication authority has extended the time limit by one month.

"The time limit for submitting sealed auction tender has been extended as per the service providers' requested so as to carry out technical and economical survey," said Min Prasad Aryal, Spokesperson of NTA.

"As per the request of related service providers and the long holiday in between the period, the authority has extended the time by one month," he added. According to the new schedule, interest service provider companies can submit the sealed auction tender for optical fibre network till December 8.

Meanwhile, the NTA has been collecting two percent of annual income for rural telecommunication development fund from various service providers operating in the telecommunication sector. The Authority is utilising the same fund to lay optical fibre connecting the Mid-Hill Highway and neighbouring districts headquarter and urban areas. 

Earlier, NTA and Nepal Telecom (NT) had made an agreement to lay the optical fibre from Aarughat of Gorkha to Chiyobhanjyan of Pachthar on the total cost of Rs 4.88 billion. Beside this, the fund still holds more than Rs 12 billion at present.

The telecommunication sector regulator is preparing to lay the fibre in the provinces 4 and 5 through a competition among the license holder service providers. The fibre will be laid connecting Aarughat of Gorkha to Burtibang of Baglung located at Mid-Hill Highway and various district headquarters under Provinces 4 and 5.

The NTA has invited proposal from the active licence holder service providers including basic telecommunication, mobile and network service providers to lay optical fibre in those areas. According to the Authority, service providers can apply for the project solely or jointly with a cap of two years period to complete the task. The service provider who asks for the least subsidy to complete the task in the competition will be allocated the project. The authority has clearly said that the subsidy amount should not exceed Rs 3 billion. The selected service provider will be granted the subsidy equivalent to auction tender amount through RTDF.

According to the Authority, the sealed auction tender proposal will be unwrapped in the presence of all applicants. The 'bid security' for the auction tender has been fixed at Rs 45 million minimum.

The laying of the optical fibre in both provinces will be completed through a single package. Under the package, a total of 2,117km optical fibre including 1,482 km underground and 635km ADSS will be set.

Similarly, under the project, 1,482km micro duct, 1,000 polls, 200 OTB, 21 Dense Wavelength Division Multiplex (DWDM), 1 NMS and 118 routers should be fixed. Likewise, under civil construction, 1,482 trenching and 1,000 Tower Installation should also be conducted. Interested service providers will have to submit the sealed auction tender disclosing all costs to set the fibre to the NTA.

 

 

 

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