The government finally issued licences to two companies to operate satellite phone services in Nepal, ending the state monopoly in the telecommunication sector. The new licensee, Constellation, will start selling phones within a week, while Avco International has said it would wait till next month to begin its service. ('Satellite phone still stuck', Nepali Times, #138)

The government called for bids from private service providers to operate satellite phone more than a year ago and four private companies applied. The unofficial explanation for the delay is the government's fear that the Maoists would use the phones. But with the ceasefire and the huge potential in rural telecommunications and the tourism industry, the delay is now getting difficult to defend. Satellite phones smuggled in from abroad are already on the black market. An estimated 300 sets with pre-paid SIM cards from Thai and Filipino companies are reportedly in use. NTA has fixed the licence fee at Rs 1.5 million that the service provider has to renew every five years by paying Rs 1.4 million. The service providers identify trekking agencies, mountaineering expeditions, the Royal Nepali Army and Kathmandu-based aid agencies as their main buyers.