STM Telecom Sanchar Private Limited

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STM Telecom Sanchar Private Limited was awarded a 10 year renewable license to provide telecommunication service (local, domestic long distance and international telephone service) in the eastern development region of Nepal that comprised of 534 village development committees (VDC). The license was awarded by Nepal Telecommunications Authority (NTA), Nepal’s telecommunications regulator, in an effort to increase the access to telecommunications in rural areas. NTA used minimum subsidy auction to select the rural service provider. A consortium led by STM Communications Services, a US based Satellite and equipment provider, won the auction with the lowest bid of US$ 11.9 million. The license was issued by NTA to STM Telecom Sanchar Private Limited in November 2003. STM Telecom Sanchar Private Limited had the following ownership structure - STM Communications Services (55 percent), Samart Communication Company Limited of Thailand (15 percent), STM Networks Inc.(10 percent) and Apollo Investment Pvt. Ltd. (20 percent). Government of Nepal funded the subsidy through a line of credit from International Development Association (IDA) of the World Bank Group. STM Telecom Sanchar Private Limited was granted limited exclusivity for five years to provide telecommunications services in the 534 VDCs. The license required STM to install and operate at least two public access lines in each of the 534 VDCs. The license also specified standards for quality and availability of service but did not dictate the technology that STM must use. To ensure completion of the project, the service provider was required to submit a performance guarantee that would be forfeited if it failed to meet its obligations. STM began to roll out its network in April 2004 and had launched service in half of the VDCs by December 2004. Not sure of the ownership structure - STM Telecom Sanchar Private Limited had the following ownership structure - STM Communications Services (55 percent), Samart Communication Company Limited of Thailand (15 percent), STM Networks Inc.(10 percent) and Apollo Investment Pvt. Ltd. (20 percent). Sent email to Ritin Singh and Tenzin Dolma of the World bank - 06/06/05 and 06/28/05 Source for capacity data: Nepal Telecom Authority's MIS Reports available at http://www.nta.gov.np/en/content/index.php?task=articles&option=view&id=36