Nepal Telecom, the state-owned telecommunication provider, has decided to roll out an ultra-fast 5G network in standalone mode.

This means that if the plan materialises, the longstanding partnership with China’s Huawei—which developed Nepal’s 3G and 4G network infrastructure—will effectively end for 5G, though the company will continue supporting existing services.

There are two approaches to launching 5G: non-standalone and standalone. Non-standalone builds on existing 4G LTE infrastructure and relies on the 4G core for functions such as authentication, mobility management and session handling.

Standalone mode, by contrast, is a fully independent 5G deployment.

Nepal Telecom launched its 4G service using Huawei technology and conducted 5G trials on the same platform under its bid agreement.

Now, for the commercial launch of 5G, the utility has chosen an entirely independent 5G system.

“Our company has decided to roll out 5G in standalone mode,” said Rabindra Manandhar, spokesperson for Nepal Telecom. “It’s based on our internal report and consensus.”

“In standalone mode, the 5G network operates entirely on dedicated 5G infrastructure—both the radio access network and the core network—without relying on existing 4G systems.”

Officials say standalone 5G is a complete, end-to-end network built on a new, cloud-native 5G Core (5GC). It is an independent system designed to unlock the full potential of 5G technology, which non-standalone networks cannot achieve alone.

The telecom plans to conduct an open competitive bidding process to procure 5G technology, though it has not disclosed a timeline.

“The service provider has the exclusive rights to choose the technology modality it wants to adopt,” said Min Prasad Aryal, director at the Nepal Telecommunications Authority (NTA). “The authority plays a facilitating role in providing spectrum and carrying out regulatory work.”

There has been widespread speculation that Nepal’s four-year delay in rolling out 5G is linked to geopolitical factors, particularly concerns over the government’s earlier decision to allow China to operate the network from 3G through 5G.

Nepal currently uses Chinese technology for radio equipment and core systems for 2G, 3G and 4G.

Experts say that in choosing the technology provider, telecom companies must avoid firms that pose national security risks.

“Internationally, some companies provide data of other countries to their security agencies, which threatens national security,” said Vijay Kant Karna, former ambassador to Denmark and a geopolitical analyst. “Before giving any foreign company control over Nepal’s communication sector, we must ensure it does not compromise national security.”

He said the company’s global track record should be thoroughly reviewed based on assessments by national and international security agencies, given vulnerabilities in Nepal’s critical infrastructure. “The company should not simply choose the cheapest bidder under procurement rules.”

In February 2019, Nepal Telecom contracted two Chinese companies—Hong Kong-based China Communication Service International (CCSI) and ZTE—for its Rs19 billion nationwide 4G expansion. ZTE supplied core equipment, while CCSI handled Huawei’s radio equipment installation and testing. Under that agreement, ZTE and Huawei were also obligated to provide free equipment for 5G trials.

Officials have long argued that Nepal adopted Chinese technology as it offered cheaper systems compared to other competitors.

Chinese firms have executed most telecom-related projects in Nepal, including those for Nepal Telecom, Ncell, the national data centre, Nepal Television, and Radio Nepal.

As part of the 5G rollout process, Nepal Telecom has asked the regulator, Nepal Telecommunications Authority (NTA), to provide 80 MHz of 5G spectrum at no cost.

“It has been a month since we wrote to the NTA requesting free 5G frequency. We haven’t heard back from the regulator yet,” Manandhar said.

NTA says frequency pricing decisions are taken by the Frequency Determination Committee under the Ministry of Communication.

However, an official at the ministry said it is not feasible to provide free frequencies except for trial purposes. Service providers must first acquire a licence before rolling out services. Frequencies are priced per MHz.

No meeting of the Frequency Determination Committee has been held so far, the official said. The technical teams of the regulator and ministry first calculate the price, after which a sub-committee recommends it to the main committee led by the communication minister.

According to NTA’s Management and Information System report up to mid-September, Nepal has 821,292 ‘3G’ subscribers and 25.97 million ‘4G’ users across Nepal Telecom and Ncell. The country has 30.11 million internet subscribers, including mobile broadband and wired connections.

Nepal Telecom launched 4G/LTE service in Kathmandu and Pokhara in January 2017.

The government initiated plans to launch 5G under its Digital Nepal Framework 2018, which focuses on eight sectors: digital foundation, agriculture, health, education, urban infrastructure, energy, tourism and finance.

Nepal Telecom originally planned to begin 5G trials in mid-July 2021, aiming to be the first in South Asia to introduce the technology. But changes in government stalled progress.

Private operator Ncell has also raised concerns about long-term investment security, saying it seeks a stable and predictable environment for 5G rollout.