Indian security agencies have expressed their apprehensions over Nepal Telecom’s decision to award a contract for installing next generation networks (NGN) to ZTE Corporation and Huawei.

As per the conditions of the contract, ZTE would install the equipment for the network in Kathmandu, while Huawei would do so in the rest of Nepal. The two companies are expected to complete the project, estimated at $19 million, in six months.

ZTE and Huawei are also expected to erect 2,500 towers all over Nepal, in addition to the 700-odd towers of Nepal Telecom already in operation for its CDMA network.