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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

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