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NT sees revenue from int'l calls drop by 50 pc

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KATHMANDU, May 1: Revenue of Nepal Telecom (NT) from international calls decreased by as much as 50 percent in fiscal year 2009/10 as compared to a year ago, thanks to increasing use of internet telephone and competitive tariffs.



NT´s earning from international call dropped to Rs 420 million in 2009/10 from Rs 814 million recorded in the preceding fiscal year.[break]



NT officials say revenue from international calls is dropping, due to emergence of alternative forms of communication. Alternative forms of communication like voice chat through Skype and Google among others are offering calls at far cheaper rates than direct telephone calls.



NT has witnessed drop in revenue from international calls in all forms of services -- PSTN, GSM and CDMA. It earned Rs 325.5 million from PSTN service, Rs 76 million from GSM and Rs 18 million from CDMA in 2009/10. Its earning from international calls in 2008/09 was almost double in all services.



NT Spokesperson Surendra Prasad Thike increasing competition amongst local operators and increasing use of internet telephone were the major reasons behind drop in revenue from international calls. “We are compelled to reduce tariff in international call because of tough competition in market. Despite of this, traffic volume has not gone up as expected,” Thike added.



Thike also said increasing internet penetration was the other factor behind drop in revenue from international calls. “People talk to their near and dear ones living abroad through Skype and Google Talk and online chat,” he said.



“Besides, internet service providers are also offering cheaper international tariff.”



Meanwhile, use of PSTN service is slowing with the growing popularity of GSM service. NT´s revenue from PSTN service dropped to Rs 9 billion in the last fiscal year, from about Rs 13 million recorded in 2008/09. Income from recharged card, however, increased by 40 percent.



“There is no reason to be disappointed, as these things happen with technological advancements,” Thike said, adding, “Now our focus is on domestic market and we are introducing new value added services to generate additional revenue.”



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