Kathmandu – At one point, Chinese smartphone brand Huawei dominated Nepal’s market. Its Mate, P, and Nova series redefined the smartphone experience, capturing the imagination of Nepal’s youth in 2014-15.
Huawei once generated substantial revenue in Nepal through its smartphones. However, when U.S. tech giant Google ceased providing its software for Huawei devices, the company’s global smartphone sales nosedived, and its market in Nepal dried up as well.
As Huawei’s gadget market share diminished, Chinese brands like Xiaomi, Oppo, and OnePlus capitalized on the opportunity to dominate.
Shift to Telecommunications
With its primary revenue source shrinking, Huawei pivoted to telecommunications. It became a critical partner for Nepal’s two major telecom operators, Nepal Telecom and Ncell. Having been active in Nepal for 25 years, Huawei has been managing their networks and operations. It also boasts a dedicated workforce and an Operations and Maintenance Center (OMC) tailored for Nepal and its companies.
Leveraging its expertise, Huawei has built advanced data centers for Ncell and the Nepal Electricity Authority (NEA). It has also played a direct role in Nepal Telecom’s 5G trials and supplies various equipment to internet service providers to ensure smooth connectivity for their customers.
Exploring New Frontiers: Solar Energy
Despite its dominance in telecommunications and internet services, Huawei has been compelled to explore new sectors due to declining business. The company has expressed readiness to support the commercial deployment of 5G in Nepal, should operators move forward.
However, geopolitical tensions and financial challenges have delayed the 5G rollout. Nepal Telecom, despite completing trials, has been unable to launch 5G commercially. Meanwhile, Ncell has adopted a “wait and see” approach.
Declining revenues have left both operators hesitant to invest heavily in 5G infrastructure. For example, Nepal Telecom, which has consistently provided a 40% dividend for four years, has announced a reduced 30% cash dividend for the fiscal year 2080/81 due to falling earnings. Similarly, Ncell has reported rising expenses, limiting its ability to improve service quality significantly.
In light of these challenges, Huawei is preparing to enter Nepal’s solar energy sector. Starting in January 2025, James Zhang, who oversees Huawei’s public relations, will lead the newly established Digital Power Business Unit in Nepal.
Digital Power: A Global Priority for Huawei
Having begun its journey with devices, Huawei now prioritizes digital power alongside its work in intelligent automotive solutions, connectivity, computing, and cloud services. Under its digital power initiatives, Huawei focuses on smart photovoltaic (PV) systems and energy storage solutions.
Zhang shared that Huawei is also prepared to develop smart charging networks for electric vehicles. For instance, the company has installed ultra-fast charging stations along China’s G318 highway, capable of providing a 20-kilometer range with just a 5-second charge.
Solar Energy Opportunities in Nepal
Recognizing Nepal’s potential in solar energy, Huawei has identified it as a strategic area for investment. The company claims to have produced 1.1 trillion kilowatt-hours of green energy globally and aims to leverage its expertise to help Nepal harness solar power.
Zhang highlighted Nepal’s mountainous terrain and unused land as ideal for solar energy projects. “There are many areas where crops are not grown. Installing solar panels in such places could enable Nepal to generate solar energy. I don’t dispute hydropower, but solar can be a strong energy source for Nepal,” he said.
Given the lack of significant reservoir-based hydropower projects, Nepal produces much less electricity during winter, necessitating imports from India to meet demand. Zhang suggested that large-scale solar projects, such as those in Nepal’s tea estates, could provide a viable solution.
He cited the example of China’s Qinghai region, where a 2.2 GW utility-scale PV project was built on a sheep farm, showcasing the potential for similar initiatives in Nepal.
Energy Storage and Microgrid Projects
Zhang emphasized that Nepal should also advance in energy storage solutions. Huawei’s Fusion Solar Solution is already helping develop solar energy for residential and commercial purposes.
The company has constructed one of the largest microgrid ESS plants in Saudi Arabia, the Red Sea Project, with a total capacity of 400 MW. Having worked in Saudi Arabia before moving to Nepal three years ago, Zhang brings valuable expertise to the table.
Huawei’s transition from smartphones to solar energy highlights its ability to adapt and innovate. As the company invests in Nepal’s renewable energy sector, it could play a significant role in addressing the country’s energy challenges while creating new business opportunities.
