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TermsofReference(ToR)forhiringconsultanttodraftguidelinesandrecommendmodalitiesonTelecom
InfrastructureSharing1) ProjectBackground
NepalTelecommunicationsAuthority(NTA)isanautonomoustelecommunicationsregulatorybody
established on March 4, 1998 (Falgun 20, 2054 BS) as stipulated within the framework of the
TelecommunicationAct1997(2053BS)andTelecommunicationRegulation1997(2054BS)withthe
viewtomanageandregularizetelecommunicationsservices.
TherearethreeBasicTelecommunicationsServiceoperators,twoRuralTelecommunicationService
(RTS)operators,twomobiletelecommunicationserviceoperatorsand36InternetServiceProviders
licensed
by
NTA
till
date.
Nepal
Doorsanchar
Company
Limited
(Nepal
Telecom),
the
incumbent,
is
operating nationwide and providing a full range of telecom services such as fixed line, cellular
mobile and Internet/Email services. Furthermore, Nepal Telecom is providing telecom services
based on various technologies such as GSM, CDMA, WCDMA, ADSL etc. by building its own
infrastructure.Furthermore,NepalTelecomhasalsoinstalledeastwestopticalfiberlink.Inthecase
ofcellularservices,NepalTelecomandSpiceNepalhavebuiltmanyBTSsalloverNepalwithhigher
concentrationespeciallyinmetropolitancitieslikeKathmandu.
Similarly,UnitedTelecomLimitedhasbuiltitsowntowers,BTSsandhaslaiddownitsowncablesto
extend itsnetworkoutsideKathmanduValley. Ithasbeenusingoptical fiberofNepalElectricity
Authority (NEA) for itsnetworkexpansionoutsidevalleyand isprovidingbasic telephone service
basedonWLLwithlimitedmobilityasanadditionalfacilitytoitsusers.Currently,ithasalsostarted
distributingRUIMtoitssubscribers.
SpiceNepalPvt.Ltd. isanothercellularmobileoperatorwhichhasbeenprovidingcellularmobile
service by establishing its own network. It is also expanding its service to various parts of the
countrybyinstallingitsowninfrastructures.Ithasextendeditsservicestoabout34districts.
Nepal Satellite Telecom Pvt. Ltd. and Smart Telecom P. Ltd. are the upcoming telecom service
providersandtheyarebeingprovidedlicensestooperatebasictelecommunicationserviceandrural
telecommunicationservicerespectively.Theyareexpectedtocommenceoperationssoon.
InthecaseofInternetservices,thereare36InternetServiceProviders(ISPs)and9NetworkService
Providers(NSPs)inexistenceasofFebruary2009.
Ingeneral,therearearound1500BTSsalloverthecountry.Basedonthedataprovidedbytelecom
operators, it has been estimated that nearly 900 BTSswill be added each year to the existing
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networktocaterthegrowingdemand.Usingtheruleofthumb,roughly10,000BTSsareneededto
providemobiletelecomservicestotheentirepopulationofthecountry.
Theoperatorsmightbesharingtheir infrastructurestosomeextent;however,NTAdoesnothave
anyguidelinesthatprovidethemamechanismorstrategyfor infrastructuresharing.Section13of
theTelecommunications
Act,
1997
(2053)
has
directed
NTA
to
carry
out
different
activities
which
is
basically related to telecommunicationsbut themain themeof thisSection isworkingofNTA to
have anationwide telecommunicationnetwork toprovide serviceswhich are affordable, reliable
and accessible. To achieve this goal, Infrastructure sharing can be one of the tools. Most
administrationsandtelecomregulatorsofothercountrieshavealreadydevisedorareworkingon
devisingInfrastructuresharingmodalities.
Duplicationofinvestmentiswasteofresources.Insomecasesduplicationisevennotpossibledue
tonaturallimitationse.g.vantagelocationssuchashilltops,orspaceforadditionaltowersorsolar
panelsorrightofway.
Optimumutilization
of
resources
can
bring
down
investment
cost.
In
the
end,
cost
savings
through
optimumutilizationofscarceresourceswillpassontotheendcustomersoftelecom.Infrastructure
sharingwillalsoallowoperators toaccelerate service expansionand thus increase the access to
telecom services. Even aesthetics of a landscape can be stopped from deteriorating further by
enforcinginfrastructuresharing.
2) ObjectiveoftheconsultancyTheobjectiveoftheconsultancyistofindoutandrecommendmodalitiesonInfrastructureSharing
and develop guidelines related to it in consultation with operators and other stakeholders.
Furthermore,
the
consultant
shall
prepare
a
consultation
paper
on
Infrastructure
sharing
and
should
incorporatefindingsandfeedbacksreceivedduringconsultationintohisfinalreport.Whilecarrying
out theassigned task theconsultantshouldconsiderpresentsocioeconomicaspectofNepaland
should strictly focus onNepalese perspectivewhile giving higher priority to enhance ICT access
(includingmobiletelephony) inruralareas,especiallymobileand internet.Moreover,areashaving
leasttelecompenetrationandlowercoverageneedhigherattention.
Another objective of this consultancy is to find out areaswhere pilot projects of infrastructure
sharingcanbe initiated.Beforegoing intoa fullfledged implementationof infrastructuresharing,
pilotprojectimplementationofthesamewillgiveabasicideaabouthowtogoaboutinfrastructure
sharinginaphasewisemanner.Forafasterrolloutofthenetwork,particularlyinruralareasthere
isnoalternativetowireless,hence,pilotprojectsshouldbefocusedonthatperspective.
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3) Taskstobeperformeda) Identifytheinfrastructuresthatcanbesharedinurbanandruralareas;b) Identify the constraints/challenges in infrastructure sharing and recommend solutions to
mitigatesuchtypeofchallenges;
c) FindoutthepresentinfrastructuresharingpracticesaroundtheworldandanalyzeInternationalbestpracticesoninfrastructuresharing;
d) Develop themodalitiesand sharingcosts inparticular,of infrastructure sharingwhich isbestsuited forNepal and carry out the present cost benefit analysis of suchmodalities. For thispurpose, the consultant may require data related to projection and pattern of growth ofnetworks,towers,subscribers,etc.tofindouttherealcostofexpansionandsavingsachievablebyimplementingnetworksharing;
e) Developmodalitiesforbuildingnewinfrastructureforsharingbyserviceproviders;f) Develop modalities for technocommercial arrangement for infrastructure sharing for both
existing&tobebuiltinfrastructure;
g) Prepare consultation paper on infrastructure sharing and consultation with differentstakeholders;
h) Incorporatefeedbacksreceivedduringconsultationperiodintothefinalreport;i) Devisean incentive (mightbe full/partial financialoranyothertools)modalitywhichwillbest
motivateoperatorstohaveanagreementoninfrastructuresharing.Incentivemodalitymightbe
differentbased
on
areas
or
telecom
penetration
rate;
j) Recommendanddevelopguidelines/strategiesforinfrastructuresharing;k) Recommend plan of actionwhich has to be carried out for a successful implementation of
infrastructuresharing;
l) Identifynineunderserveddistricts/areas,threeeachfromMountainous,HillsandTerairegionswhere pilot projects pertaining to tower infrastructure sharing, can be implemented and
recommend the scopeandmodality to implement thosepilotprojects toachievea complete
coverageinthosedistricts/areas;and
m) Identifythescopeandlocationsofinfrastructuresharingfortheaboveidentifiedninedistricts.Thisincludesenumeratinginfrastructurewhichcanbesharedindetails.
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4) OutputsanddeliverablesTheconsultantshallsubmitaninceptionreporttostartthestudyandaprogressreport(midterm)
whichshouldcontainmostofthetasksmentionedinSections3Taskstobeperformed.However,
thefinalreportshallconsistofalltheoutputsmentionedinsection3Taskstobeperformed.
5) DurationandTimingThe consultant will submit the inception report, which shall be finalized within a week in
consultationwithNTA,within 15 days. The consultant shall submit itsmidtermprogress report
within60daysandconductconsultationwithin75days.Thefinalreportshouldbesubmittedwithin
120dayswhich includes35daysofconsultationperiod.Hence,totaldurationofthisassignmentis
120 days. Finally, the consultant should be available to answer questions, update any required
informationandtakepartindisseminationoffindings,uponrequest,forthedurationoftheproject.
Note:Alldurationstartsfromthedayofsigningacontract.
6) QualificationsandselectioncriteriaConsultantwillbechosenbasedonthefollowingcriteria.
a) Competencytocarryouttheassignmentandexperienceofcarryingoutsimilartasksintelecomorotherutilitysectors,tobeincludedwithreference
b) Projectproposalwithdetailedmodalityofcarryingoutthetasksmentionedinsection3Taskstobeperformed.
c) QualificationsoftheProfessionalPersonneltobeAssignedtotheProjectd) Costoftheconsultancyservicee) Consultantscapabilitytoconductconsultationwiththestakeholdersf) Other relevant qualifications of the consultant as mentioned in Evaluation Criteria for
Consultancyservice
7) Remunerationa) Thecontractwillbesignedonsubmissionofaperformancebondof10%ofthequotedamount
andthebondshallbevalidtill150daysaftersigningthecontract.
b) 20%payment1ofthequotedamountwillbepaidonsubmissionofinceptionreport.
1AsperNTAsbylaws,20%paymentofthequotedamountcanbepaidasanadvanceaftersigningacontract
againstaBankGuaranteeofthesame.
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c) TheConsultantwillreceiveanother40%paymentofthequotedamountwhen itsubmitsthemidtermreport,and
d) Thefinal40%paymentsofthequotedamountwillbereleasedwhenfinalreportissubmittedtoNTA.
8) TermsandConditionsa) Asabidsecurity,abankvoucherevidencingacashdepositofNRs.25,000/ (NepaleseRupees
TwentyFiveThousand)onA/CNo.0106011664201,NabilBank,Kantipath,hastobesubmitted
alongwiththebiddocuments.
b) NTAwillissueLetterofIntent(LoI)tosuccessfulbidderc) Consultant shall submit aperformancebondof 10%of thequoted amountwithin 7daysof
issuanceofLoI
d) Agreementwillbesignedwithin7daysofthesubmissionofthePerformanceBonde) Incaseof failuretosubmitperformancebondandagreement induetimesecondbestbidder
willbecalledtoworkonthisassignmentaftercompletingdueprocess.