'NT partner should invest at least Rs 30bn'

HIMALAYAN NEWS SERVICE

KATHMANDU: The committee which was formed to recommend the government about the process of bringing a strategic partner at Nepal Telecom (NT) has concluded that the new partner should invest at least Rs 30 to Rs 40 billion.

The partner must invest Rs 30-Rs 40 billion based on share value of NT at present, said coordinator of the committee and joint secretary at finance ministry Baikuntha Aryal. Bringing in a strategic partner for NT is not easy, he said. “However, government must divest its shares to make the company more competitive and effective in the days ahead.”

The government and the strategic partner must not be allowed to transfer their shares until after five years of acquiring the shares, the committee has said.

The report has suggested the government to calculate the share value of the company based on the premium valuation method. It has also suggested that the strategic partner should have an experience in operating telecom services in at least three countries including a country from the G22 group.

The aspirant partner should have an experience of handling at least 20 million subscribers in PSTN and mobile service, the report said, adding that the partner company should not directly or indirectly invest in other telecom service providers in the country.

The report has asked government to bring in only those firms whose yearly income is more than $ 1 billion. It has asked the government to include a representative from the company which will come as a strategic partner in the executive board of Nepal Telecom.

It has suggested all concerned parties to keep the option of retirement schemes open to make the company more competitive.