1. NTA at a Glance
With the unprecedented innovations in the field of telecommunication services and rapid telecommunications development in the world, it has become necessary to bring the same pace of development and expansion in this sector in Nepal also. Keeping in harmony with the currently evolving new technological developments, the emerging craze for globalization and liberalization or market economy concept, it is felt that the resources and efforts of His Majesty's government alone cannot fulfill the steadily increasing demand of the telecommunication services in a competitive environment. Even though the private sector entrepreneurs are interested in investing in the novel sectors, flow of private sector capital in productive areas could not be made effective due to unfavorable environment and lack of opportunities. Taking this scenario into account, the National Communication Policy 1992 A.D. envisaged the concept of encouraging the private sector participation for providing telecommunication services to the public and to assist to the extent possible as is deemed necessary in an easily available, simple and well planned manner for the development, expansion and operation of this sector inside the kingdom of Nepal as well as abroad.
With this concept, using liberalization policy and involving the private sector in a competitive environment for the development and expansion of telecommunication sector in Nepal, His Majesty's Government of Nepal's decision dated December 25, 1995 has initiated the involvement of the private sector in the development of the telecommunication services. Nepal Telecommunications Authority as an autonomous regulatory body has been established on March 4, 1998 as stipulated within the framework of the Telecommunication Act 1997 A.D. and Telecommunication Regulation 1998 A.D. to make this work more systematic and regular.
2. Telecom Network of the Country
2.1. The Nepal Telecom (NDCL), Nepal’s incumbent telecommunications operator, has made significant progress in the growth and development of the national public switched telecommunications network (PSTN) in the last decade, particularly during Nepal’s Fifth Phase Telecom Project (1992-97).
2.2. The same tempo of growth continues in the ongoing Seventh Phase, with the number of distributed lines increasing from approximately 65,000 in 1992 to over 4,78,204 (fixed line), Post-paid Mobile Subscribers 1,02,219 and Pre-paid Mobile Subscribers 2,46,400 till 14 April, 2006 (Baisakh 1, 2063). The fully digital network offers full national and international direct dialling services.
2.3. The national trunk network is equipped with 1762 MBPS, out of which 788 MBPS broadband microwave system is being used to link Kathmandu with the rest of the country.
2.4. Rural service was expanded in Nepal under the Fifth Phase Telecom Project, through Japanese (JICA) and IDA (World Bank) fund. Country’s 75 district centres have automatic telecommunications service, including STD and ISD. This access is usually provided by NDCL or a privately operated public call office (PCO) or a phone shop. Sixty-eight district centres have communications services to some neighbouring VDCs by means of 2 MBPS microwave links, MARTS, single channel VHF/UHF or Very Small Aperture Terminal (VSAT) services. The following table summarises types of technology used to provide telecommunications services to the VDCs of Nepal as of 14 April, 2006 (Baisakh 1, 2063).
Technology used by NDCL to serve VDCs
Digital C-DOT (wire line) exchanges 39/7,054 (Exchange/Capacity)
MARTS 328/2,659 (Marts Terminals/ Telephone Subscribers)
VHF/UHF radio 1,055 (Telephone Subscribers)
Digital microwave (JICA project) 3/69 (Rural Station/Substation)
HF radio 4
VSAT 245/578 (Terminals/Telephone lines)
VDCs served with at least one PCO 1,974
Telex Service 256/105 (Capacity/Distribution)
2.5. NDCL has achieved the following rural service penetration levels as of 14 April, 2006 (Baisakh 1, 2063). Percentages identified in the table refer to the percentage of VDCs with at least one PCO in the specified region.
Region
Total
VDCs VDCs Served with at least one PCO % of VDCs Served with at least one PCO
Nepal 3,914 1,974 50.4%
Eastern Development Region 893 462 51.7%
Central Development Region 1199 602 50.2%
Western Development Region 864 498 57.6%
Mid-Western Development Region 575 218 37. 9%
Far-Western Development Region 383 194 50.7%
2.6. United Telecom Limited (private sector basic telecommunications operator based on WLL technology) has started its own International Gateway from 19th April 2004 and is providing its service in Kathmandu Valley. Total subscriber of WLL telephone service is 45,032 as of 14 April, 2006 (Baisakh 1, 2063).
2.7. Spice Nepal Pvt. Ltd. (private sector mobile operator) has started its operation from 1st October, 2005. Total subscriber of SNPL is 109759 (1365 post paid & 108394 pre-paid) as of 14 April, 2006 (Baisakh 1, 2063). It has recently started its service in Pokhara and Hetauda.
2.8. Limited Mobility service is introduced as a new service to allow movement within the local calling area. United Telecom was granted license on Chaitra 11, 2062 (24 March, 2006) and it has already a subscriber base of 3000.
2.9. The total telephone penetration rate (i.e. 1 phone to 100 citizens) in Nepal is around 3.66% (2.12% in fixed line + WLL + Limited Mobility and 1.54% in mobile) (Total Population is assumed to be 2,53,42,638. source: www.cbs.gov.np)
3. Rural Telecommunications Service Policy
3.1. NDCL is providing Rural Telecommunications Service in the entire country, except 534 Village Development Committees of Eastern Development Region (EDR), where NTA has licensed STM Telecom Sanchar Pvt. Ltd. to provide at least two telephone lines in each Village Development Committee. NDCL is providing telecommunications services to 462 villages in EDR.
3.2. Being a VSAT based Rural Telecom Operator in Eastern Development Region, STM Telecom Sanchar Pvt. Ltd. has installed the hub stations at Kathmandu and Biratnagar and has installed a total of 1093 PCOs in 411 VDCs fulfilling its committed 4th milestone and has been duly certified Independent Technical Consultant (ITC). As a result of this achievement number of VDCs covered has reached the figure of 2387 out of 3914.
4. NTA Activities during the past three months
4.1. New category of License namely "Limited Mobility Service based on wireless telecommunication to be operated in specified area" was introduced to foster telecom development.
4.2. Eleven VSAT User, two Internet Service Provider (ISP) and one Limited Mobility Service licenses were issued.
4.3. Two NTA staffs took part in "Workshop in ICT indicators for benchmarking performance in network and services development" from March 1-3, 2006 and "Workshop on Regulatory capacity building" 20-23 February, 2006.
4.4. Study visit to Telecom Regulatory Authority of India (TRAI) by two NTA staffs from February 27-March 01.
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