Kathmandu: Nepal Telecom is facing growing internal resistance as it tries to move forward with the implementation of a new billing system, with opposition now emerging from within its own workforce. The situation has become more complicated after a government-appointed study committee raised serious questions about the tender process, pushing the project deeper into uncertainty.
The controversy stems from findings in an official report that accused Nepal Telecom of drafting tender specifications in a way that effectively narrowed competition and favoured a single company. After these concerns were formally documented, moving ahead with the billing system has become increasingly difficult.
On one hand, Nepal Telecom is under pressure from tight timelines that require it to advance the new billing system. On the other, the company finds itself trapped in a grey zone, unable either to confidently implement the existing tender or to scrap it and begin a fresh process. This policy paralysis has created a serious operational dilemma.
Adding to the confusion, the government study committee merely questioned the tender process but stopped short of recommending whether it should be implemented or cancelled. The absence of clear guidance has left Nepal Telecom in an awkward position, with responsibility but no direction.
As disputes over the billing system have intensified, cooperation from employees has noticeably weakened. Even senior officials within the organization have been reluctant to take ownership of the project. Those in key decision-making positions have hesitated to move forward, fearing that approving and implementing the tender could later draw legal or political consequences.
In some cases, senior staff have reportedly chosen resignation over responsibility. Rather than risking involvement in a potentially controversial decision, certain officials have opted to step aside altogether.
One prominent example is Surendra Karmacharya, a Level-10 officer at Nepal Telecom and director at the Mobile Services Directorate. He chose to resign instead of accepting responsibility related to the billing system. Karmacharya had recently been transferred from mobile services to the Information Technology Directorate in Jawalakhel, the unit expected to take the lead in advancing the already-invited billing tender.
With the tender already under dispute, Karmacharya—who is already pension-eligible and only seven months away from mandatory retirement—was unwilling to assume the risk associated with such a sensitive project. He resigned from his post around two weeks ago after declining to take charge of the IT Directorate.
While Karmacharya has publicly stated that his resignation was voluntary and driven by personal reasons, sources indicate that the billing tender controversy was the decisive factor. He has said he lacked the motivation to take on additional responsibilities and was dissatisfied with the nature of the role assigned to him in recent months.
He has also pointed out that, having already qualified for pension benefits and being close to retirement, he saw little reason to take on a controversial assignment at the final stage of his career. He denied acting under pressure, instead arguing that his expertise lay in a different field and that being reassigned to an unfamiliar domain influenced his decision to resign. Notably, he was also on the list for a possible promotion.
Following Karmacharya’s departure, Nepal Telecom assigned Bimlesh Jha, a director based in Biratnagar, to head the Information Technology Directorate.
Even if the existing process continues without interruption, officials say it would take at least two months to award the contract, followed by another 14 months for the selected contractor to fully implement the new system.
Nepal Telecom spokesperson Rabindra Manandhar, however, downplayed the significance of the resignation. He described voluntary resignations as a normal occurrence within any institution and rejected claims that employees were refusing to take responsibility for the billing system.
Manandhar said that although the billing system falls under the IT Directorate, Karmacharya had not explicitly refused to implement it. According to him, the resignation was based on personal considerations, including the proximity of retirement. He emphasized that staff turnover is natural and that responsibility for the project has now been reassigned.
He also rejected any direct link between the billing tender dispute and the resignation, insisting that Nepal Telecom must continue to operate its billing system uninterrupted. Manandhar said no final decision has yet been made on the disputed tender and that the company is still working through possible options for implementing a new billing system.
Nepal Telecom’s current billing contract remains valid until September 2027. To ensure continuity beyond that date, the company began the process of selecting a new vendor well in advance. Even if the existing process continues without interruption, officials say it would take at least two months to award the contract, followed by another 14 months for the selected contractor to fully implement the new system.
This means that a minimum of one and a half years is required to complete the process. Delaying further could leave Nepal Telecom without sufficient time to either finalize a new system or correct flaws in the current tender, placing the organization in an increasingly precarious position.
According to Manandhar, the lack of a clear government decision has added to the uncertainty. However, given the essential nature of telecom services, he said Nepal Telecom is now under pressure to reach a decision within days, not months.
The tender for the new billing system was first issued on 7 May 2025. Two companies—China-based Hol Cloud Technology Company Limited and Huawei Technologies—submitted bids. Nepal Telecom later qualified only Huawei for the financial proposal stage, despite receiving bids from both firms.
This decision has been challenged in court. Hol Cloud filed a case at the Patan High Court after being disqualified at the technical evaluation stage, demanding an explanation for why its proposal was rejected. The case is currently under judicial review.
The government study committee concluded that the billing tender involved serious irregularities, including tailor-made specifications favoring a single bidder, the formation of a bid evaluation committee in violation of procurement laws, breaches of the Public Procurement Act, collusion in technical criteria, and conflicts of interest designed to benefit particular parties.
The committee’s findings have only deepened the uncertainty surrounding Nepal Telecom’s billing system procurement. The report, prepared by a committee led by former chief secretary Maniram Gelal, was submitted to Communications Minister Jagdish Kharel on December 19. Titled a study on the initiation of bidding for a “new technology-based billing system” at Nepal Telecom, the report has left the company facing more questions than answers.
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