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NTA announces 90% subsidy to expand broadband service

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KATHMANDU, March 3: Nepal Telecommunications Authority (NTA) on Saturday announced that it would provide 90 percent subsidy to telecom operators if they expand optical fiber network in the districts of mid-western and far-western regions that are so far devoid of such an infrastructure.



The telecom sector regulator also unveiled a plan to provide 60 percent subsidy to operators if they expand optical fiber network in the central, western and eastern regions that have no access to broadband services. [break]



NTA Chairman Bhesh Raj Kanel made such an announcement addressing a function held to mark its 14th anniversary. "We are providing subsidy mainly in order to encourage the companies to develop infrastructure in the rural areas and expand the penetration of broadband services," he stated.



Fiber optic communication is considered the most reliable means of transmitting data and voice from one place to another as transmission of pulses of light through optical fiber ensures that the signals are not distorted.



Kanel said NTA would provide subsidy from the Rural Telecommunications Development Fund (RTDF). Going by the existing rule, telecom operators and internet service providers contribute 2 percent of their total annual revenue to the RTDF. It presently has a fund of more than Rs 5.2 billion.



NTA estimates that expanding the optical fiber networks to all the district headquarters would cost around Rs 3 billion.



Kanel, meanwhile, expressed dissatisfaction over low internet penetration. Although the number of people having access to telephone has increased 57 percent, internet subscribers presently account for only 15 percent of total population.



Minister of State for Information and Communication Sunita Kumari Sah too urged the telecom operators to focus on expanding data services.



"Development today is connected with ICT. Hence, making broadband services more affordable and accessible is crucial," she stated.



Sah lauded the companies for lowering tariffs, but asked them to improve quality of service.



Earlier, NTA organized an interaction with telecom operators, seeking their opinion on the penalty amount to be slapped to the illegal VoIP operators. Existing law is silent on the matter.



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