CG Telecom, a unit of the first multinational company of Nepal- Chaudhary Group is going to bring its own internet service in operation. The company has been going through the construction of necessary infrastructures for setting up the fiber internet services and is planning to appear aggressively in the market.
The company is also building a data center in Satungal, Kathmandu to operate internet services. According to the sources, about 25% of the work has already been completed.
In this regard, the company will have all the necessary requisites to bring fiber internet into operation in some places including Satungal in the next five to six months. Apart from this, the company has also started the process of procuring necessary equipment and materials including point-to-point fiber connection, OLT (optical line terminal), router.
CG starts Internet in Nepal: Will it disrupt Nepal’s ISP Industry?
About CG Telecom
CG telecom is one among the 40 companies under the well-renowned conglomerate of Nepal- Chaudhary Group(CG). Chaudhary Group formally entered into the telecom sector in the year 2013. Under its subsidiary group CG Telecom, they acquired an 80% stake of rural telecom service provider STM Telecom, owned by US-based STM Communications Service Inc.
CG Telecom had also made a plan to aggressively offer 5G services by obtaining a license to operate basic telecommunication services in the construction of optical fiber networks. Because of this news of CG Telecom working to launch 5G service in Nepal, it was expected to become the next Jio for Nepal previously.
Unable to obtain a unified license to operate mobile and basic telecommunications services, CG immediately focused on internet services. Unified license is the license where the operators will get GSM and CDMA license, thus enabling the operators to launch the latest mobile services(4G/5G).
The company had applied for the unified license in 2012. However despite their interest in investing a huge amount (even up to NRS 25 billion) in telecommunications industry , NTA had not given any authority to import the telecom equipment for CG. Thus CG Telecom had remained stagnant to start its services.
The then NTA chairperson Digambar Jha had a say on the license as- “That will happen only if the company fulfills all other requirements. The license will be conditional.” He had also added that NTA might give a license with a condition that the company must erect base transceiver station (BTS) towers at first.
The telecommunication service providers should clear all pending fees to NTA along with those related to limited service licenses. CG Telecom was denied a unified license also because it had failed to expand limited mobility services in eastern region of Nepal, according to the NTA.
Since they were denied to start telecom services, they apparently shifted their focus towards fintech and internet services. As a result, CG Pay is the new product of CG Telecom launched in January 2020 as a digital wallet in Nepal.
Chaudhary Group claims that it will provide internet and telephone services at cheap rates if it gets the license.
Similarly, it is creating a buzz in the market that it has transformed the company into a limited company from a private entity. It means, the public can apply for its IPO as soon as it clears all the processes. The company, which used to operate as a private company, will now hopefully operate as CG Communications Limited.
Conclusion
There are altogether six telecom companies/operators here in Nepal; among which 5 are mobile/cellular service providers. As provided by Wikipedia, there are altogether 28 internet service providers (ISPs) in Nepal since 2019. CG Telecom is going to enter the internet industry with an aim to make a significant mark as an internet service provider with the cheapest rates and reliable services through its fiber internet connection. Led by the only one Forbes billionaire of Nepal, Binod Chaudhary, CG has expanded to become a company with a net worth of USD 1.5 billion and has tenaciously made it bigger year after year. Moreover, after the legacy has been shared by visionary leaders like Nirvana Chaudhary, Rahul Chaudhary, and Varun Chaudhary, this business group is all set to explore even more and higher.
Do you think CG Telecom would succeed in this spree? Should they be provided a unified license as well? Feel free to share your views on this.
