Information and Communication Technology

INFORMATION AND INFORMATION AND COMMUNICATION TECHNOLOGY COMMUNICATION TECHNOLOGY

The COVID-19 pandemic has highlighted the vital role that telecommunications (telecom) infrastructure plays in keeping corporations, governments, and communities linked to each other and going. Given the rapid spread of COVID-19 and the rise in the number of countries implementing travel restrictions, our everyday lives have necessitated us spending more time at home and using more internet data use work and leisure, thus putting a strain on the telecom industry. Telecommunications companies (telcos) are concentrating on improving network resiliency and assessing how COVID-19 would affect their future investments, especially in 5G. Telcos are also making improvements to support consumers, who need networking services more than ever during this time. In some countries, internet data is being used as a tool to track and contain the spread of the virus.

5G network testing to being in

four Nepali cities: The Ministry of Communications and Information Technology (MOCIT) of Nepal has announced that 5G network testing will begin in Kathmandu, Pokhara, Birgunj, and Biratnagar in the near future. The National Radio Frequency Policy Determination Committee has approved the tests. The Nepal Telecommunications Authority (NTA) has proposed using low-band spectrum (700MHz, 900MHz, 2300MHz, and 2600MHz), mid-band spectrum (3300MHz, 3400MHz, 3600MHz. and 4100MHz), and high-band spectrum (26GHz), and NTA will now determine which frequencies will be assigned to operators for 5G services.57

Increasing access to telecommunication and data

services: The NTA recorded the tele-density of the country at 131% with 811,850 fixed line subscribers (2.7%) and 38.7 million mobile subscribers (128%). Similarly, the number of internet data subscribers stood at 25.4 million subscribers. The internet penetration rate as of mid-February 2021 stands at 84%. As shown in Figure 4, the internet penetration is largely driven by mobile broadband services, which account for approximately 61% of the internet penetration, and fixed broadband (wired & wireless), which contributes to 22% of the internet penetration.58

Market share of telecom operators: As shown in Figure 5, the market leader Nepal Telecom (NTC) recorded a total of 21.2 million (GSM & CDMA) subscribers, while Ncell had 16.09 million GSM subscribers.

Figure 4. Growth trend of voice telephone and data service penetration

Figure 5. Telecom Operator Market Share

Nepal Rastra Bank grants NTC

mobile money license: Nepali Digital Payment Company, a joint venture between state-owned telecoms provider NTC) and Rastriya Banijya Bank, has been granted permission to operate a mobile money service by Nepal Rastra Bank. The company will use NTC’s mobile number as a digital wallet, enabling customers to use their mobile balance for digital transactions such as money transfers and bill payment.59

Note: NTC stands for Nepal Telecom, STPL stands for Smart Telecom Pvt. Ltd.

Budget highlights:

Out of the total federal budget of NPR 1.67 trillion (USD 13.87 billion) for the upcoming FY 2021/22, NPR 7.74 billion (USD 64.2 million) has been allocated to the Ministry of Communication and Information Technology (MoCIT). The budget highlights of the ICT sector are as follows:

• Broadband internet services to be expanded to 60% of public schools within the new FY.

• The Minister of Finance also announced the Mobile Device Management System (MDMS). This system will allow the authorities to control and enforce the government’s policies on smartphones and tablets.

• To broaden communication and broadband access among the youth, the government will provide a SIM card each for people above 16 years of age.

• Nepal Telecom (NTC) customers can now buy a share of the company. NTC will allocate 22% of its share up for mobile, landline, and internet customers.

OUTLOOK

Network usage is increasing with many telcos reporting significant increases in voice and internet data traffic. Network reliability is an ongoing focus of telcos. Network infrastructure in Nepal is witnessing spikes in dropped-call rates and lower audio quality. Telecom operators and internet service providers will need to invest in new infrastructure and bandwidth to ensure reliability of networks. The testing of 5G services comes at a critical juncture when the demand for high-speed connectivity is greater than ever. It is expected that the implementation of 5G services will reduce the cost of connectivity, and end users can experience ultrafast data speed, lower latency, and better and faster connectivity. The telecom sector is all set to guide innovation through the “new normal” as network demands grow larger by the day due to the Covid-19 pandemic Consistent connectivity and enhanced customer service can become the two key elements for the future of telcos.