Telephone service penetration hits 77.11pc

The number of telephone lines distributed by telecom companies has reached 20.43 million as of mid-May TELEPHONE service penetration rate has increased to 77.11 percent as of mid-May. The number of telephone lines distributed by telecom companies has reached 20.43 million. The growth in the overall telecom subscriber base is largely driven by the rise in the number of mobile phone service users. Of the total users, 18.13 million are the users of cellular phone service, according to the Nepal Telecommunications Authority (NTA). Only Nepal Telecom (NT) and Ncell offer mobile phone service. As per the NTA, Ncell’s customer base has increased to 10.09 million, while NT has 8.79 million users (including fixed line and limited mobility service). Rest is shared among four telecom companies — United Telecom Limited (UTL), Smart Telecom, Nepal Satellite Telecom and STM Telecom Sanchar. NTA officials attributed the growth in the overall telecom service users to the rapid expansion of service network by telecom companies, growing spending power of the public, cheaper technology, and competition. Stiff market competition has forced even small operators like UTL to come up with attractive schemes. The most recent UTL scheme offers customers a wireless phone set at Rs 2,400 and provides a talk time worth Rs 200 each month for up to one year for free. In 1999, when NT introduced mobile service, the telecom penetration rate was at 2 percent and was dominated by fixed line service. However, the fixed line subscription now is in the declining trend. The NTA data show 17,233 users discontinued landline phone service in the last one year. NT officials said people’s attraction towards landline is decreasing by the day. As a result, NT is more focusing on the mobile segment and is also preparing to start distribution of new mobile lines under its 10 million GSM mobile lines project. “We are targeting to start distribution of new mobile lines within a month,” said Guna Kesari Pradhan, spokesperson for NT. Ncell has dominated the market in both voice and internet services. As of mid-May, Ncell’s market share has reached 49 percent in telephone service, followed by state-owned NT with 43 percent. UTL, the first private sector telecom provider, commands 4 percent market share, while Smart Telecom and Nepal Satellite have 3 percent and 1 percent shares, respectively. The boom in mobile telephony has also boosted mobile internet service, with data service penetration rate reaching 25.23 percent. As per the NTA, there are 6.68 million internet users, and of them, 6.25 million access internet through their mobile handsets. Pradhan said the demand for all types of data services is increasing significantly. She said NT has been focusing on mobile data through its 2 million IP-CDMA mobile and the 10 million GSM mobile lines projects. Telephone Subscribers Service 2013 2012 2011 Mobile 18.13m 14.75 m 10.9 m Fixed Line 834,084 851,317 845,657 Limited Mobility Service 1.46m 1.05m 678,852 (Source: Nepal Telecommunications Authority)