Briefing: Huawei inks Nepal 4G deal ahead of 5G push

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Nepal’s CG Group ties up with Huawei to launch 4G services – Reuters

What happened: Huawei has secured a $100 million contract from Nepali multinational Chaudhary Group (CG) to supply equipment for a 4G network expansion that could be upgraded to 5G in the future. A Turkish telecom company will provide technical and design services. Nepal first launched a 4G service in 2017 but only large cities like Kathmandu and Pokhara offer the service. Nepal had more than 16 million mobile internet users in October 2017, according to the Nepal Telecommunications Authority.

Why important: The deal marks another break for Huawei after US President Donald Trump and Chinese counterpart Xi Jinping agreed at last weekend’s G20 summit in Japan to return to the negotiating table to discuss trade frictions. For Nepal, the deal marks the entry of a new player into the communications sector. State-owned Nepali Telecom which makes up 51% of the market, rolled out plans in March to expand 4G coverage and bring in 5G. However, industry newcomer CG is confident of securing one-third of market share by bringing in the latest technology.