Nepal Telecom has appointed a consultant in line with its plan to bring in a strategic partner. 

The state-run telecom giant on Tuesday signed an agreement with UK-based Analysys Mason Limited to this effect. NT Managing Director Kamini Rajbhandari and Analysys Mason’s Rohan Dhamija signed the document on behalf of their companies.

Analysis Mason will assist NT on several financial fronts, including due diligence audit, legal requirements in buying or selling, share divestment, and selecting strategic partner.

The government has reportedly planned to divest its 91.49 percent stake in NT and bring its share-holdings down to 60 percent. If this happens, a prospective partner will have to invest Rs30-40 billion, according to a study conducted by the Ministry of Finance in 2012.

However, NT Spokesperson Prativa Baidya told the Post they were yet to ascertain the exact shareholding the strategic partner will have, adding, the consultant it will help further the divestment steps.

With all the latest offers and discounts on several service tariffs, NT seems to be doing better in maintaining its competitive status in terms of market share. It also owns infrastructure such as office buildings and other forms of fixed assets in different parts of the country. 

The company has stronger and better opportunities waiting, as it has already acquired license for operating 4G service.

Having said that, everything is definitely not rosy for NT’s business. Technical glitches are occasional headache to its service users. All the services offered by NT are not equally contributing to its financial health. 

Some services such as WiMAX internet and CDMA mobile service have not been as well received in the market compared to its 3G and ADSL internet services. 

NT is also facing a tough competition from private service providers who are directly and indirectly partnered with international conglomerates. 

The strategic partnership is also expected to increase competition in telecom sector, ultimately making services more efficient.