Last updated: 9 Jan 2020 Update History
Report Pages: 89
Analyst: Sebastien De Rosbo
Over the years, efforts to expand the telecom sector in Nepal have met with many challenges. The fixed line market in Nepal remains underdeveloped. A major reason for this is due to the dominance of the mobile segment. Overall penetration reached only 2.8% in 2019.
The market is predicted to decrease slightly over the next five years to 2024 as the mobile segment continues to grow for both voice and data/broadband usage.
Fixed broadband penetration in Nepal remains very low mainly due to a limited number of fixed lines and the subsequent dominance of the mobile platform. Also, the declining number of fixed lines is restricting more widespread development of fixed broadband. However, the market has grown strongly over the past five years from a very small base with penetration increasing from 0.9% in 2014 to 3.9% in 2019.
Fibre-optic networks are developing all over the country under private and public funding. The growing demand for high speed internet will strongly push the development of fixed broadband. Over the next five years to 2024 strong growth is expected to continue. Fixed broadband penetration is predicted to reach 10% by 2024.
Between 2018 and 2019 numerous ISP announced contracts with Nokia to deploy fibre-to-the-home (FTTH) in the country. This is in line with the government’s vision of a digital society, whereby 90% of the population will have access to broadband services by 2020.
The NTA announced the launch of the first Nepalese satellite in 2022. Thales Alenia Space will build the national satellite telecom system.
Nepal’s mobile market is now relatively developed and has experienced extraordinarily strong growth over the last years. Slower growth is predicted over the next five years to 2024. The market will be constrained from higher growth due to an already high penetration rate.
In November 2019, the Nepal Telecommunication Authority (NTA) took a drastic decision and revoked the licence of Nepal Satellite Telecom. The company has NPR1 billion in unpaid fees and other liabilities to the NTA. This is the first step in the fight between NTA and the telecommunication operators , as they all have unpaid fees.
Nepal has seen a very rapid increase in mobile broadband penetration over the past seven years driven by increasing numbers of 3G and 4G mobile subscribers. However, the mobile broadband market is still at an early stage of development with penetration well below most other Asian countries. Strong growth is predicted over the next five years to 2024.
Nepal Telecom; NDCL; United Telecom Ltd (UTL); Ncell; TeliaSonera; STM Telecom; Nepal Satellite Telecom Pvt Ltd (NSTPL); Smart Telecom Pvt Ltd (STPL).
Well “Thank you” so much for your informative & prompt reply – it is refreshing to actually get an answer as so many companies ignore their support or enquiry requests – sad really. I really do appreciate your information.
Brian Pollett, Genuine Wealth Creation Consulting Pty Ltd
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