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State-owned Nepal Telecom (NT) has cancelled its Rs 5bn procurement of a new billing system from Chinese technology giant Huawei, even though the bidding process had reached its final stage. The decision ends a tender that had been controversial from the beginning and raises fresh questions about governance, data security, and geopolitics in the country’s strategic telecom sector.

NT opened a tender for the system on March 18 last year. Although it shortlisted Huawei and WhaleCloud, the latter was disqualified at the technical proposal-stage. On Aug 31, NT formally invited Huawei’s representatives for the opening of the financial proposal scheduled for September 15. 

The process, however, never reached that point. The financial proposal opening was first postponed to Sept 24 following the GenZ protests of Sept 8 and 9 that toppled the KP Oli-led government. It was again postponed on Sept 4 until further notice. Days later, NT cancelled the entire procurement process, stating that a new tender would be called shortly.

Although then Minister for Communication and Information Technology Jagdish Kharel had given the go-ahead to the Nepal Telecom management, sources say the cancellation came after instructions from higher authorities. According to officials familiar with the process, geopolitics played a decisive role.

Huawei faces heavy restrictions in several countries, including the United States, over national security concerns. Western governments have repeatedly warned that Chinese telecom equipment could expose sensitive data to state influence. Although Nepal has not formally banned Huawei, the pressure of operating a state-owned telecom company in a polarized global technology environment is growing.

But geopolitics was not the only factor. The tender had been disputed since its announcement. Critics accused NT of structuring the bid to favor a single vendor and undermining fair competition. Questions were also raised about the violation of a directive order issued by the Supreme Court, which had clearly warned against awarding both the core network and billing system to the same supplier. 

The court, in its order dated 10 Sept 2024, had stated that the billing system procurement must ensure the protection of fundamental rights, including personal data. It said that the vendor supplying the billing system should not be in a position to access personal data through the core network. It also warned that using the same supplier for both systems could create a conflict of interest and pose information security risks. In simple terms, the ruling effectively meant that Nepal Telecom should maintain separate vendors for its core network and billing system.

In a telecom network, the core network is the central system which handles all voice calls, data routing, switching, roaming, and mobility management. It also generates call detail records (CDRs), which contain sensitive information about who called whom, when, and for how long. The billing system is responsible for converting network usage into money. It calculates charges, prepares invoices, deducts balances, and enables packages and offers. It can work in real time, such as through an online charging system, or in non-real time, through offline billing. Since both systems are critical and sensitive, many telecom operators globally use separate vendors for them. This separation reduces security risks, avoids monopoly control, and makes fault isolation easier when something goes wrong.

Nepal Telecom’s core network is built by Huawei. Its existing billing system, however, has been supplied by Asia Info since 2011. The original contract was for three years, but instead of launching a fresh tender, NT repeatedly extended Asia Info’s contract. Citing irregularities in the contract extension process, the Commission for the Investigation of Abuse of Authority (CIAA) filed a case at the Special Court against former managing director Sangeeta Pahadi Aryal and others. The case is still under consideration.

The attempt to replace Asia Info with Huawei would have brought both the core network and billing system under a single vendor. That triggered alarms among experts and regulators.

Ganesh Gautam, associate professor at Pulchowk Campus, had advised NT that although a single-vendor model might offer minor operational convenience, the risks far outweighed the benefits. He warned of data security vulnerabilities, reduced transparency, difficulty in fault diagnosis, and the danger of vendor lock-in.

“If one system is compromised, the same method can be used to breach the other,” he explained. “When systems are supplied by different vendors, the chance of identical security weaknesses is very low.”

Gautam also said that if one system goes down due to a technical flaw, the other may also fail if both are supplied by the same company. 

Global Telco Consult, an international advisory firm, had also advised NT that awarding both systems to the same vendor could create conflicts of interest.

Many leading operators have separate vendors for core and billing systems. Even Ncell, Nepal’s private telecom operator, initially used Huawei for both. In 2018, it brought ZTE on board as its billing system provider to reduce dependence on a single vendor.

The cancellation of the Huawei contract, therefore, appears less like a sudden decision and more like the inevitable outcome of legal, technical, and political pressure converging at one point.  The larger question now is whether Nepal Telecom can restart the process in a transparent and competitive manner. 

The printing of the ballot papers for the proportional representation (PR) electoral system for the forthcoming House of Representatives (HoR) polls has been completed, the Election Commission (EC) said.  

The EC stated that a total of 20,850,000 ballot papers were printed on Monday at Janak Education Materials Center Limited, Sanothimi, Bhaktapur.

Managing Director of Janak Education Materials Center Limited, Yadunath Paudel, said that printing of the ballot papers for the first past the post electoral system will begin after the completion of the ballot papers for the PR system. 

The Center has already sent almost 1.1 million ballot papers to the EC as samples, which will be used for voter awareness and other related purposes.

The Election Commission (EC) has brought the Joint Election Operation Center into operation to immediately resolve any issues that appear in the House of Representatives (HoR) elections.

The Office of the Center is at the premises of the EC, Kathmandu. 

Officiating Chief Election Commissioner Ram Prasad Bhandari inaugurated the Center on Sunday.

Bhandari said that the Center will act immediately to resolve the issues in the constituencies if they are not addressed from the concerned voting centres. 

Secretary at the EC will lead the Center with a Joint Secretary from the Home Ministry and representatives from the security bodies as members.

The Center will collect information, analyse and take immediate decisions to proceed with the election process, it has been said.

Nepal has completed candidate nominations under its First-Past-the-Post (FPTP) electoral system, marking a critical step toward the country’s upcoming parliamentary elections scheduled for March 5. The process concluded largely peacefully, easing concerns about political instability.

Nepal’s federal parliament consists of 275 members, with 165 elected through the FPTP system and the remaining 110 through proportional representation (PR). With nominations now finalized, the Election Commission is moving ahead with the election calendar. Below are ten developments emerging from the nomination process that merit attention.

According to Nepal’s Election Commission, 3486 candidates have filed nominations under the FPTP system. Out of the total candidates, there are 3,089 men, 396 women, and one person from other categories. This figure is expected to decline slightly as parties negotiate withdrawals. Separately, 3,293 candidates from 63 political parties have registered under the proportional representation system.

Political parties have introduced a notable number of first-time candidates, reflecting growing public pressure for political renewal. Analysts link this trend partly to youth-led protests in September that called for accountability and generational change. The Nepali Congress, one of the country’s largest parties, has nominated 106 new candidates out of its 165 FPTP slots. The CPN-UML, CPN (Maoist Center), and the newly formed Rastriya Swatantra Party (RSP) have also fielded a large number of new contenders.

In contrast to the 2017 and 2022 elections—when major parties formed electoral alliances—no formal pre-poll coalitions have been announced this time. Major parties, including the Nepali Congress, CPN-UML, RSP, and the Nepali Communist Party, have fielded candidates in most constituencies. While limited seat adjustments may still occur, parties appear to be testing their individual electoral strength.

Despite constitutional commitments to inclusivity, candidate representation under the FPTP system remains uneven. Women, indigenous communities and other marginalized groups are underrepresented. While proportional representation lists are legally required to ensure diversity, no such obligation exists under FPTP, resulting in only about 400 female candidates 

One of the most closely watched races is in Jhapa-5, where former Prime Minister KP Sharma Oli faces former Kathmandu mayor Balen Shah, a popular independent figure known for his anti-establishment appeal. The constituency drew nationwide attention during nominations, with competing demonstrations of political strength and minor clashes reported.

Several senior leaders are contesting from strategically significant constituencies. Nepali Congress President Gagan Kumar Thapa has moved from his traditional stronghold in Kathmandu to Sarlahi-4 in the southern Madhes region. Former Prime Minister and Maoist leader Pushpa Kamal Dahal is contesting from Rukum (East), a historic center of the Maoist insurgency. Former Prime Minister Baburam Bhattarai has reversed an earlier decision not to contest and is running from Gorkha-2. RSP chair Rabi Lamichhane is contesting from Chitwan-2, while former top bureaucrat Kul Man Ghising is running from Kathmandu-3. Veteran leader Sher Bahadur Deuba, a dominant political figure since the 1990s, has opted not to contest this election.

Unlike in previous elections, a significant number of journalists have entered the electoral race, underscoring public distrust in traditional political elites and the media’s expanding role in politics. Television host Rishi Dhamala and several other journalists are contesting. Nepal’s state-run news agency reports that more than a dozen journalists are running for office.

The Rastriya Swatantra Party, which emerged as a major political force in the 2022 elections, has fielded candidates in 164 of Nepal’s 165 constituencies, excluding the remote Himalayan district of Manang. This positions the party alongside established parties and reflects its rapid organizational growth. The monarchist Rastriya Prajatantra Party has also fielded candidates nationwide.

Nepal’s Supreme Court has refused to intervene in internal disputes within the Nepali Congress, refusing to issue a stay order that could have delayed the election process. The decision has removed a major legal obstacle and allowed the Election Commission to proceed as scheduled. Four cabinet ministers resigned to contest the elections, drawing criticism from civil society groups and opposition figures. Critics argue that ministers should prioritize ensuring free and fair elections rather than seeking electoral office, while supporters defend the resignations as consistent with democratic norms.