CG Telecom – the company under Chaudhary Group- owned by billionaire Mr. Binod Chaudhary, is preparing to provide fiber internet service to the Nepalese. The company has already started the preparation and is currently building its datacenter at Satungal, Kathmandu. According to the sources, about 25% of the data center work has been completed.
- Also Read: WorldLink To Build 14 Data Center With The largest And Internationally Accredited Data Center
The company has also acquired the license for Internet Service Provider and Network Service Provider from Nepal Telecommunication Authority.
The company could not gain a unified license, which led it to work on the 5G service. CG Telecom is also now a public limited company.
It provided the services as CG Communication Pvt. Ltd., which is now changed into GC Communication Limited. According to the General Manager of CG – Mr. Madhusudan Poudel, the company has already changed its name through the company registration office. This may lead the company to offer shares to the general public through IPO.
CG has been struggling to get the license of mobile services from the Nepal Government. If the case were a success, it would provide the internet and mobile service half the price of what we are paying right now with free voice calls. But the agreement could not conclude.
However, the company is now working to provide internet service at a low cost, trying to fulfill its promises. A few months from now, CG Fiber internet will be available in some places, including Satungal. Also, Point to Point Fiber Connection, OLT (Optical Line Terminal), Routers, and other infrastructural goods are in the process of being bought.
It will be amazing to have the internet service from the CG at a low price, which will oblige the other private ISP to lower their rate.
Why could CG Telecom not get the unified license?
The unified license enables the operator to run its telecommunication services throughout the country.
A few years back, the government decided to provide the unified license to CG Telecom; however, it was declined by the NTA, accusing the company of not clearing all the pending fees and not abiding by the government rule. The unified license was also denied due to its failure to expand the limited mobility services in eastern Nepal.
Also, as per the rule, the telecommunication company wishing to acquire a unified license has to pay Rs 50 million during the first year of its operation, increasing to Rs 1.50 billion in the ninth year. The company that has given the application needs to settle a fee of Rs 20.13 billion within ten years of the unified license issuance.
CG communications argue that the government had asked to pay the amount in advance, which does not match the existing law. The company had also officially asked the government to justify the reasons for not issuing the unified license to CG Telecom. But, the government has not responded yet.
CG tried its best to obtain the unified license. The company also announced the collaboration with Huawei to launch the 4G service in Nepal, with a signed deal worth $100 million. It was a dream project for Mr. Binod Chaudhary. The political affairs of Mr. Chaudhary may also have brought rifts between the company and the government.
