Research and Markets: Nepal - Telecoms, Mobile, Internet and Forecasts - 2012

A number of factors had been slowing the development of Nepal's telecom network up until now. Certainly the country's mountainous topography has made it extremely difficult to develop its telecommunications infrastructure. Furthermore, Nepal had been struggling under an adverse economic situation caused largely by political instability. Over the years, acts of terrorism and the activity of the Maoist rebels operating throughout the country have taken their toll on the telecom network - both directly and indirectly.

In its early development phase, telecommunications in Nepal were basic and limited, with the first telephone exchange not being established in the country until 1960. Despite an absence of any substantial foreign investment, telecom services steadily expanded from 1995 onwards, mainly as a result of assistance provided through foreign grant-aid and the introduction of transparent tendering, which increased threefold the number of lines that could be purchased for the same amount of funding. Nevertheless, for a long time the number of fixed-line connections remained woefully low. Unmet demand remained high and the waiting time for a fixed-line service could be five or more years.

Despite all the effort, there remained a significant disparity between the high coverage levels in the cities and the coverage available in the underdeveloped rural regions. Progress on providing some minimum access had been good, however. Of a total of 3,914 Village Development Committees across the country, only 306 were unserved by December 2009. In order to meet future demand, it was estimated that Nepal needed to invest around US$135 million annually in its telecom sector.

Market highlights:

• By late 2011 mobile penetration in Nepal had quickly moved to around 45%, with mobile subscriber numbers having increased fivefold in just four years;
• Fixed-line growth in Nepal was particularly slow and there was little sign that this segment of the market was picking up;
• The challenge for the fixed market was not just to increase the lowly 3% fixed-line penetration, but to continue the expansion program into the underserved rural areas;
• The deployment of WLL services has certainly provided a boost to the fixed market; by 2012 this technology platform supported around 50% of all fixed-line services;
• After being sluggish for years, the internet segment of the market finally started to move in 2010; user penetration jumped quickly in that year to surge to around 9%.
• As for broadband, subscriptions remain low consistent with a lowly penetrated internet market; broadband however represented around 75% of all internet connections by 2011.
• After years of uncertainty Nepal's economy continued to struggle in 2011 and into 2012; however, it was hoped that a rebuilding process has finally started.
• Coming into 2012, the telecom sector continued to undergo reforms, although progress is somewhat erratic; most importantly the various government regulators were no doubt having a major impact on the market in the way they are performing their watchdog roles.
  

This report provides an overview of the trends and developments in the telecommunications markets in Nepal.

Subjects covered include:

• Key statistics;
• Market and industry overviews;
• Major operators (mobile and fixed)
• Regulatory environment;
• Infrastructure;
• Mobile market;
• Internet market;
• Telecom market forecasts for 2015 and 2020.
  

Key Topics Covered:

1. Executive summary

2. Key Statistics

3. Country overview

4. Telecommunications market

5. Regulatory environment

6. Basic telephone service providers in Nepal

7. Telecommunications infrastructure

8. Internet market

9. Mobile communications

10. Notes on forecasting

Companies featured:

- Nepal Telecom (formerly Nepal Doorsanchar Co Ltd)

- United Telecom Ltd (UTL)

- Nepal Satellite Telecom (NST)

- Smart Telecom

For more information visit http://www.researchandmarkets.com/research/1f574b82/nepal_telecoms

Research and Markets
Laura Wood, Senior Manager.
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Sector: Telecommunications and Networks