CG Telecom Timeline History in Nepal

In this post you will be reading about the timeline history of cg telecom in Nepal. CG telecom is one among the 40 companies under Nepal’s billionaire Binod Chaudhary’s: Chaudhary Group(CG). Before CG group investing in Telecom, they have been investing in food, hospitality, education,real estate and many more. With wide success on instant noodles named “Wai-Wai”, CG group have been remarkably grown and having hands on various company under the umbrella Chaudhary Group(CG).

Let’s crack the history of CG Telecom

Chaudhary Group formally entered into telecom sector in the year 2013. Under its subsidiary group CG Telecom, they acquired 80% stake of rural telecom service provider STM Telecom‚ owned by US based STM Communications Service Inc. STM, which operates under the brand name Gramintel, has been providing telecom services to around 5,500 subscribers across 628 village development committees (VDCs) in 52 districts.

License Details according to Nepal telecommunication Authority under named C. G. Communications Pvt. Ltd.

License Type[ Rural Telecommunication Service ]
License NumberRTS-EDR-01
AddressLalitpur Metropolitan-2, Sanepa, Lalitpur
Issued Date2060/08/05
RemarksLicense Name Amendmend  from STM Telecom Sanchar Pvt. Ltd. Dated 2072/11/21

In 2017, Prime Minister Puspa Kamal Dahal directed the NTA to give unified license to STM. However, STM telecom have already applied for unified license in 2012. After the direction from Puspa kamal Dahal, former NTA chairperson Digambar Jha speaks on the license as- “And that will happen only if the company fulfills all other requirements. The license will be conditional.” He added that NTA may give a license with a condition that the company must erect base transceiver station (BTS) towers at first.

Unified license is the license where the operators will get GSM and CDMA license, thus enabling the operators to launch latestmobile services(3G/4G).

According to NTA-All telecom service providers are required to have adequate BTS towers and exchange centers before they are issued a unified license.

NTA had previously denied the license to STM stating that it hadn’t fulfilled the requirements for the license. So, Ministry of Information and Communication under the leadership of former minister Surendra Kumar Karki had taken the matter to the Cabinet and directed the NTA to issue the permit.

Besides establishing a BTS tower network, the telecom service provider will have to pay at least Rs 650 million to the government.

STM needs to invest Rs 350 million in obtaining a unified licence. It will also have to pay Rs. 270 million as frequency fee and Rs. 30 million as a royalty fee. To add to that, according to NTA, STM hasn’t cleared its liabilities other than its contribution to Rural Telecommunications Development Fund (RTDF).

For this reason, NTA have rejected the license for CG Telecom. And in opposition, CG Telecom have taken this issue in supreme court. In December 27,2018, Supreme Court instructs NTA to give permission to CG telecom for Mobile service operation. This decision creates a new level of excitement not only for CG but also for nepali citizen because CG have declared to start 4G services within 2019. Some even used to believe that CG Telecom will be the next Jio.

Also Read: List of Telecom Operators in Nepal

Later after few months, NTA invited telcom operator for the auction of residual spectrum in 900/1800/2100 MHz band. This auction hinders CG to get the basic spectrum needed to operate the services. Thus CG have gone to Supreme Court against the decision of NTA. The Supreme Court decision directs NTA to treat CG telecom in the same way as other telecom operators. Putting the spectrum auction on hold, Supreme Court instructs NTA not to hinder in any way for the operation of Mobile service by giving permission to bring equipment and operate with frequency spectrum.

Later, NTA have not given any authority to import the telecom equipment’s for CG thus CG remained stagnant to start its services. And this reamins till today.

There is rumors that, if Puspa Kamal Dahal become prime minister: the door for CG telecom will be open to start their services.

This is how the CG (Chaudhary Group) marks its timeline history in Nepal as telecom operators in Nepal.

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