Kathmandu: Nepal Telecom is reportedly taking steps to cancel its 'Point of Interconnection' agreement with Huawei International Singapore, citing issues in the process. The telecommunications giant's move to terminate the agreement comes in light of concerns over the contract's execution.

A senior official from Nepal Telecom disclosed that the contract awarded to Huawei for the 'Installation and Commissioning of Point of Interconnection' is currently undergoing the cancellation process. The decision has arisen due to complications in the contract's procedural aspects.

The choice of Huawei as the sole bidder during the competitive bidding process raised eyebrows and prompted inquiries into the intentions of Nepal Telecom. This concern regarding the legitimacy of the contract initiated discussions around its cancellation, despite internal opposition within the organization.

In a parallel development, the Abuse of Authority Investigation Commission has launched a probe into potential unfair trade practices and monopolies. The inquiry was initiated following suspicions of a substantial amount of money being transferred out of the country. Moreover, the Nepal Telecommunication Authority has exhibited reluctance to collaborate with Teramox, further clouding the telecom landscape.

The decision to award the contract to Huawei faced scrutiny as only one out of four competing companies was deemed technically eligible after evaluations. Huawei's eligibility, especially in the third round of assessments, has been cast into doubt, prompting apprehensions within the telecom community.

Recent history reveals Huawei's past disqualification due to document-related errors. Furthermore, authorities are expressing reservations about continuing the alliance with Huawei Singapore, given the questions surrounding the sudden shift in the company's qualification status.

Widespread concerns have emerged internationally regarding Huawei's involvement in 5G infrastructure. Several countries, including the United States, United Kingdom, India, Australia, New Zealand, Germany, and France, have taken measures to exclude Huawei from their 5G plans. Additionally, there are suspicions that Huawei is conducting opaque 5G technology testing, possibly with the aim of establishing a monopoly in Nepal, using the 2600 MHz frequency.

As Nepal Telecom navigates these complex dynamics, the discussions surrounding the cancellation of the agreement and the implications of its decisions on the telecommunications landscape are closely watched.