Kathmandu- Two Chinese tech companies bidding to install Nepal Telecom’s new billing system have close ties, raising concerns about fairness. Whale Cloud, which is mostly owned by Alibaba, works closely with ZTE. Huawei is the other Chinese bidder.

Both companies already control Nepal Telecom’s main network systems and radio access network (RAN) infrastructure.

If the current process continues, one of them is expected to win the billing contract too.

Nepal Telecom is still moving forward with the deal, even though experts, regulators, and the court have raised objections.

In the initial round of bidding, only one company applied, and none were from China. That tender was cancelled. Later, Nepal Telecom released a revised tender that seemed to favor Chinese firms. Many observers believed that the new tender looks suspiciously designed for a Chinese company.

One of the key changes in the new technical criteria is a significant downgrade in hardware standards. The current system runs on stronger hardware (Intel 2.4 GHz and RISC 5 GHz), but the new specs only require 2.4 GHz.

This change helps Huawei, which can’t access newer hardware due to international sanctions. Due to sanctions from the U.S. and Europe, Huawei has not had access to new telecom equipment since 2019.

Most global companies now use more advanced technology, but Huawei still uses older, cheaper equipment. The lowered requirements make it easier for them to qualify.

Huawei also lacks its own Customer Relationship Management (CRM) system. Hence, Huawei would likely partner with either Whale Cloud or AsiaInfo, both Chinese firms.

 If it uses AsiaInfo, it could continue using the existing system, which would lower costs.

Since Huawei and Whale Cloud are linked, the competition between them lacks any genuine competition.

This could lead to outdated, low-quality services and lock Nepal Telecom into using the same vendors long-term.

This 'vendor lock-in' means NTC would find it incredibly difficult, if not impossible, to switch providers in the future, leaving them at the control of a single foreign entity.

There’s also political concern. Lokendra Karki, who represents Whale Cloud’s parent company in Nepal, is said to be supporting the deal. He is the brother of Gyanendra Bahadur Karki, a Nepali Congress leader and former communications minister.

Biznessnews has previously reported on these risks, yet Nepal Telecom proceeds undeterred. If a Chinese firm secures the billing system, it could further cement its dominance at the cost of competition and security.