A STUDY ON

TELECOMMUNICATION INDUSTRY
NEPAL TELECOM

Submitted by:
DHARMA BAHADUR BHUJEL
KEEPA SHRESTHA
PRAKASH CHEMJONG
SANDHYA GIRI
SAMRAT PANDEY

Submitted to:
PRADEEP RAJ PANDEY
Course instructor
Marketing management

SAIM College
(Affiliated to Pokhara University)
Mid-Baneshwor, Kathmandu, Nepal
Pokhara University

In partial fulfilment of the requirement for the degree

Of
Master’s in Business Administration (Global Business)

September 2018
 CHAPTER ONE
INTRODUCTION

1.1. Background

Telecommunication services
A service provided by a telecommunications provider, or a specified set of user-information
transfer capabilities provided to a group of users by a telecommunications system is called
Telecommunications service. The telecommunications service provider has the responsibility
for the acceptance, transmission, and delivery of the message and the telecommunications
service user is responsible for the information content of the message.

Telecom services now include fixed-network services (data retail, Internet retail, voice retail
and wholesale) and mobile services. Fixed-data services includes all dedicated/private line,
packet and circuit-switched access services (for example, frame relay, asynchronous transfer
mode, IP, Integrated Services Digital Network, DSL, multichannel multipoint distribution
service [MMDS] and satellite) retail revenue. No differentiation is made between the type of
traffic or application carried by these services. All types of transmissions non-voice data,
image, video, fax, interactive services and even voice can be carried by these services
regardless of whether the source format is analogue or digital. All revenue reflects service
provider annualized retail revenue paid for by the business and residential end user of the
service; no wholesale or carrier-to-carrier revenue is included.

Fixed-voice services is another service that reflects retail voice service revenue for all services
that are sold as such to end users and includes the provision of local and long-distance services
related to voice (calling charges, line rental/subscription and connection fees are included in
this category), enhanced voice services, data and fax transmission over the circuit-switched
PSTN, and retail voice over IP revenue — paid for by the business and residential end user of
the service; no wholesale or carrier-to-carrier revenue is included.

Mobile telecom services generate income from mobile telephone calls and mobile data usage
(Short Message Service [SMS] and mobile data access) from all mobile operators in that
regional market.. Income from mobile telephone calling charges, mobile data access, SMS
charges, line rental/subscription and connection fees are included in this category.
Wholesale/carrier services are not included as a component of business IT spending.
Wholesale/carrier services reflect carrier revenue from carrier-to-carrier service transactions.
Telecommunications services are a global market worth over US$ 1.5 trillion in revenue.
Mobile services account for roughly 40 per cent of this, while mobile subscribers worldwide
currently outnumber the use of fixed telephone lines by more than two to one. Over the past
decade, the market has witnessed far-reaching changes, with the introduction of competition
into a sector that was once principally a monopoly. There are large numbers of the players
providing the telecommunication services in recent days.
1.2 Telecommunication services in Nepal
In Nepal, telecom service was formally provided mainly after the establishment of MOHAN
AKASHWANI in B.S. 2005. Later as per the plan formulated in the First National Five year
plan (20122017 BS); Telecommunication Department was established in B.S. 2016. To
modernize the telecommunications services and to expand the services, during third five-year
plan (2023-2028), Telecommunication Department was converted into Telecommunications
Development Board in B.S. 2026.After the enactment of Communications Corporation Act
2028, it was formally established as fully owned Government Corporation called Nepal
Telecommunications Corporation in B.S. 2032 for the purpose of providing
telecommunications services to Nepalese People. Nepal Telecommunications Authority (NTA)
is the regulatory body of telecommunications in the country.
According to the latest figures, 8 companies have been licensed to operate voice based
telephony services out of which 5 are heavily invested by foreign companies. The investment
market of telecom is a subject of interest for many foreign companies and NTA itself as it has
to prepare the regulations on hand.
According to the latest Management Information system (MIS) report of Nepal
Telecommunications Authority (NTA), 97.65 percent of people in the country have access to
telephone service. The report includes data of up to 16 July, 2018. Today, there are two Major
telecommunication providers in Nepal, which have penetrated the market and other three are
slowly coming to the market with their new plans and promotions.
The most subscribed one is of Nepal Doorsanchar Company Limited which is traded as Nepal
Telecom which have Approx. 20 million customers and comes NCELL with Approx. 17
million customer base.

1.3 Nepal Telecom

Nepal Doorsanchar Company Limited is state owned telecommunication service provider in
Nepal with 85% of the government share. It was known as Telecommunication Department at
the time of establishment, its name was changed Telecommunications Development Board in
1969. After the enactment of Communications Corporation Act 1971, NTC was formally
established as fully state-owned corporation called Nepal Telecommunication Corporation in
1975. On Magh 22, 2060 BS, Nepal Telecommunication Corporation was transformed to a
public limited company. NTC is claimed to be the first Operator to provide 3G Service in South
Asia and first 4G LTE service provider in Nepal. The mission, vision and goal of NTC are
explained below:

Mission
"Nepal Telecom as a progressive, customer spirited and consumer responsive Entity is
committed to provide nation-wide reliable telecommunication service to serve as an impetus
to the social, political and economic development of the Country"

Vision
"Vision of Nepal Telecom is to remain a dominant player in telecommunication sector in the
Country while also extending reliable and cost effective services to all"
Goal
"Goal of Nepal Telecom is to provide cost effective telecommunication services to every nook
and corner of country"

Major services offered by NTC

i. PSTN
- Fixed Landline
- Toll Free Phone
- IVR Service
- Pay Phone Service
ii. GSM
- GSM Post-paid
- GSM Pre-paid
- CDMA
- EVDP
iii. Internet
- ADSL
- GPRS/3G/4G LTE
- Fibre to Home
- WiMAX Service