Nepal Telecom announced the cancellation of its Rs5 billion billing system bid on Sunday, following a Friday decision. The state-owned firm ousted Huawei, citing violations of Nepal’s public procurement law. The project aimed to install a convergent real-time billing and customer support system. Spokesperson Rabindra Manandhar confirmed the move, which leaves options open for a re-tender.
This Nepal Telecom Huawei bid cancellation highlights growing scrutiny on foreign telecom deals in South Asia, where geopolitical pressures from the US and India often clash with China’s infrastructure influence. It could delay Nepal’s digital upgrades, affecting millions of subscribers amid the shift to 5G networks.
Huawei Nepal Billing System Details
Nepal Telecom initiated the tender last year for upgrading its Huawei Nepal billing system. Huawei and Whalecloud Technology qualified technically on 25 August 2025. Whalecloud, owned largely by Alibaba and linked to ZTE, was later disqualified. Huawei’s financial proposal remained unopened.
The Huawei Nepal billing system upgrade was meant to replace the current setup handled by Asia Info Linkage Technologies since 2011. That contract, extended multiple times, faced allegations of irregularities. In June 2025, the Commission for the Investigation of Abuse of Authority (CIAA) filed a corruption case against Nepal Telecom Managing Director Sangita Pahadee, former MD Sunil Paudel, and 16 others. The CIAA claimed losses from “unnatural price rates” in the annual maintenance deal.
Rabindra Manandhar stated: “There were clauses in the bid documents that did not meet the requirements of Nepal’s public procurement law.” This Nepal Telecom procurement law violation led to the halt. The Ministry of Communication and Information Technology intervened on 24 October 2025, forming a study committee on 30 October. The committee’s report, submitted in November 2025, flagged issues like potential vendor lock-in and governance gaps.
Nepal Telecom Ousts Huawei Amid Probes
Nepal Telecom ousts Huawei in this case, ending a long partnership. Huawei built Nepal’s 3G and 4G infrastructure. An anonymous Huawei source said: “Although the tender process was initiated to upgrade this system through transparent competition and defined technical standards, repeated obstructions have stalled the process, creating serious barriers to Nepal Telecom’s digital transformation plan.”
The Nepal Telecom procurement law violation ties into broader CIAA probes. A government committee noted tender conditions favouring Huawei, risking system quality and data security. Bid details were shared via pen drive, and the evaluation lacked a legal representative. These flaws prompted the fast-track CIAA investigation.
Nepal Telecom had 15.92 million subscribers by mid-December 2025, holding 53.5 percent market share per the Nepal Telecommunications Authority report. The Huawei Nepal billing system failure could disrupt services for this base. Past extensions of the Asia Info contract affected reliability, with complaints of outdated tech.
Background
Huawei’s role in Nepal dates back over a decade. The firm won the original billing contract in 2011 for 10 years, extended in 2021 and 2022. Similar concerns arose in 2023 when Nepal Telecom cancelled a Point of Interconnection deal with Huawei over monopoly fears. That move followed opaque 5G testing by Huawei, raising corruption alarms.
The current Nepal Telecom Huawei bid cancellation echoes these issues. Geopolitical factors play in, with US and India pressuring against Chinese vendors. Beijing expressed concerns via former ambassador Chen Song during a farewell to Prime Minister Sushila Karki. This links to the $215.96 million Pokhara International Airport probe involving Chinese firms.
South Asia’s telecom sector faces similar tensions. In India, Huawei faces bans on security grounds. Pakistan and Bangladesh balance Chinese investments with Western alliances. Nepal’s decision could influence regional procurement norms, emphasising transparency amid economic ties with China.
The interim government, tasked with elections, faces criticism for mishandling such deals. The Nepal Telecom procurement law violation probe underscores anti-corruption drives, with CIAA prosecuting 18 officials in related cases.
What’s Next
Nepal Telecom plans a re-tender after stakeholder input. Manandhar added: “We will go for a re-tender and take suggestions from stakeholders before announcing it.” Huawei remains eligible to bid.
This could align with Nepal Telecom’s 5G rollout in standalone mode, potentially diversifying vendors. Delays might push back upgrades, affecting subscriber growth. The CIAA probe continues, with possible charges if more irregularities surface.
Observers watch for impacts on Nepal-China relations. A successful re-tender could resolve the Nepal Telecom Huawei bid cancellation saga, ensuring compliant procurement.
The Nepal Telecom Huawei bid cancellation marks a pivot towards stricter oversight, safeguarding public funds in telecom projects.
Published in SouthAsianDesk, January 20th, 2026
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