But Nepal's Supreme Court in August last year rejected the workers' plea. "The services will initially be launched in Kathmandu and later extended to other areas. We are working out an attractive tariff package to benefit customers," Desikan said.

He said the firm expected a sizeable portion of its revenues to come from tourists with roaming facilities on their mobile phones, but did not give details.

"Nepal is an attractive market and we are looking at adding between half a million to one million subscribers over a 10-year time frame," Desikan said. Nepal said in March 2000 that it would allow private operators to start mobile phone services as a part of its drive to liberalise the economy.

In November 2000, ModiCorp, a holding company of India's B.K. Modi Group, won a 10-year licence to run the first private mobile phone service in the mountainous kingdom in partnership with the Khetans. Nepal Telecommunications Corp began its mobile phone services in 1999, but it has faced a problem because high prices have discouraged customers.