Kathmandu: Nepal Telecom's contract with Huawei International Singapore about awarding the “Installation and Commissioning of Point of Interconnection” is undergoing a cancellation process, Khabarhub reported on Monday.

It reported that the decision has been taken after concerns about an emerging monopoly within Nepal Telecom.

According to Khabarhub, the bidding process was not fair as Chinese technology firm ‘Huawei International Singapore’ was the only firm that participated in the bidding.

Which led to the matter being sent to the evaluation committee and is now in the midst of a cancellation procedure.

As per the Khabarhub, the decision faced opposition from Nepal Telecom’s senior personnel, and regulatory authorities also expressed concerns.

Despite the regulatory authority’s growing concerns about the potential unfair business deal and monopoly within Nepal Telecom, the cancellation process was eventually initiated.

Adding to the situation, the Commission for the Investigation for Abuse of Authority (CIAA) has commenced an inquiry into potential instances of unfair business dealings and the emergence of monopolistic practices within Nepal Telecom.

Following a technical evaluation, Nepal Telecom deemed three out of the four companies vying for the contract as technically ‘unqualified’.

Earlier, it was reported that Chinese telecom giant, Huawei is conducting 5G testing in Nepal with little transparency, raising concerns over potential corruption issues and monopoly in the country’s telecom sector, Nepal-based Khabarhub reported.

The Chinese telecom giant, which is seen as a security risk by the US and European governments was testing the 5G technology, with little transparency, in Nepal using a frequency of 2600 MHz. The testing has raised concerns among authorities and triggered an investigation by the Commission for the Investigation of Abuse of Authority (CIAA) over potential corruption issues.

Since the company is already under scrutiny for allegedly being involved in bribery and clandestine operations worldwide, the issue of national security remains a significant concern in its global expansion efforts.

As the company faces allegations of intellectual property theft and espionage in several countries, the issue of national security remains a significant concern in its global expansion efforts, according to Khabarhub.

Additionally, Huawei’s business dealings have led to bans in certain countries and investigations by international authorities.

Earlier, the US and European governments had said that Huawei is a security risk due to concerns about state influence and the potential vulnerability of its fifth-generation networks.

This has also led to objections from countries like India, which have raised red flags against deploying Huawei gear in their own 5G mobile networks.

The company has faced multiple accusations of bribery and corrupt practices worldwide, reported Khabarhub.

Meanwhile, in Algeria, a North African country, the company’s executive was convicted of bribery, resulting in a ban on Huawei from bidding for public contracts.

Similarly, investigations are ongoing in Zambia, where the company is accused of attempting to secure an expensive contract to build cell towers in rural areas through bribery.