Nepal telecom probes Huawei contract amid monopoly and transparency concerns

Nepal Telecom seeks to cancel Huawei contract over monopoly fears, sparked by opaque 5G testing and corruption concerns.


Nepal Telecom is reportedly terminating its ‘Point of Interconnection’ agreement with Huawei due to concerns regarding potential corruption and monopoly in the country’s telecommunications sector. Huawei had been conducting 5G testing in Nepal with limited transparency, which raised suspicions. By canceling the contract, Nepal Telecom addresses these concerns and aims to ensure transparency and fair competition in the telecom sector. This move is significant considering Huawei’s prominent position in the global telecom market. It also aligns with the increasing worries worldwide about Huawei’s involvement in developing 5G infrastructure, resulting in several countries placing restrictions and bans on the company’s participation in their 5G networks.

While Huawei denies any misconduct and claims the safety and security of its technology, the concerns expressed by various countries have led to precautionary measures to protect their networks. Nepal Telecom’s decision to cancel its contract with Huawei demonstrates its focus on transparency and fair competition. The repercussions for Nepal’s telecom sector and its 5G network development progress remain to be seen. Overall, this development sheds light on the ongoing debate surrounding Huawei’s role in global telecom networks and the efforts to address potential security risks.