Tring, Tring

The telecommunications sector of Nepal took a giant leap following the introduction of mobile phone services in 1999. In the past decade, Nepal’s tele-density has scaled up to over 20 percent from a meager 2 percent, thanks solely to the available mobile services. What’s even more noteworthy is that this phenomenal spike in subscriptions actually took place in just the past five years.



Though mobile service was introduced in 1999 after the-then Nepal Telecommunications Corporation, now called Nepal Telecom (NT), received license from Nepal Telecommunications Authority (NTA), it caught the attention of popular imagination only after the introduction of prepaid mobile phone services. Then, after incoming calls were made free, it lured more people towards mobile telephone. The entry of Spice Nepal Private Limited (SNPL), a private player, marked another milestone in changing the telecommunications landscape of Nepal. Today, NT has 2.99 million mobile service subscribers while SNPL boasts of another 1.81 million.



It’s indeed heartening to see a rapid growth and expansion of mobile services in Nepal. The benefits of connectivity needs no mention; and we expect NTA to play a constructive role in enabling state and private players to expand their services to a wider populace in the future. While there certainly is enough room to take heart from the rapid growth of the service, we should also not fail to notice that 80 percent of the population is still bereft of basic telephone facilities. This also implies that there is ample scope for existing and new players to expand.



However, in the quest to grow, service providers must make sure that they don’t give quality a pass. The existing mobile phone services are pathetic at best, with subscribers having to bear the brunt of ´poor network´ everyday. NTA must not issue licenses to players that cannot prove its capability to maintain an acceptable level of quality in its services. Having said that, we are not advocating for regulations that stifle competition. Our only concern is that service providers should not be lured into this sector with the sole intention of churning out money at the expense of common Nepalis.



Like the world over, the future of telecommunications in Nepal certainly lies in mobile telephony, more so given Nepal’s topographical limitations where it’s far easier and faster to spread the reach of mobile services compared to landlines. However, growth should not only strengthen the mobile service players but also the subscribers. What should ultimately ensue is a win-win situation.

Related story

Second chance