As Nepal's telecommunication sector is on the brink of crisis, the government should put special emphasis on security and protection, according to stakeholders.
In a program on 'Revitalizing the Telecom Industry' organized by the Nepal Economic Journalists Association (SEJAN) in Kathmandu on Wednesday, the stakeholders said that the positive intervention of the state in the telecom industry has become inevitable. Presenting a working paper at the
program, telecommunication expert Manohar Kumar Bhattarai said that the mobile industry is a basic means for promoting the digital economy. He presented the data that the contribution of telecom sector has decreased from 3.6 percent to 1.8 percent recently. He said that although 90 percent of the population has 4G coverage, only 2 out of 10 users use data regularly. He said that Nepal's mobile internet usage is very weak compared to other neighboring countries.
Bhattarai said that as the use of 4G increased, the operators began to invest heavily to protect their existence, but as the returns did not come accordingly, the business of the service providers began to decline. He said that there is pressure on income due to more reinvestment in the telecommunication sector. He was of the opinion that the situation is not looking good due to the continuous decrease in income as the service providers need 6 billion rupees annually just to operate their services smoothly.
Chief Executive Officer and Managing Director of Ncell, a private sector telecommunication service provider, Jabbor Kayumov said that Nepal's telecommunication sector is close to a major crisis. He appealed to everyone to be alert. He expressed concern that Nepal, which was ranked 117 two years ago in the mobile connectivity index, has now fallen to 119th rank. He said that due to the lack of a comfortable environment in the telecommunication sector, foreign investment could not be attracted.
Since the business of Nepal's telecommunication sector is continuously going down, the tax rate going to the government is also continuously decreasing, so everything should be serious in this situation, he said. Kayumov expressed his concern that the role of the regulator Nepal Telecommunication Authority should be more focused on facilitating service providers and that it is paying more attention to revenue collection. He said that although operators have already invested heavily in the expansion of 4G, the state is ready to participate in the talk of spectrum for 4G, but the appropriate spectrum should be ensured. He said that Ncell is preparing to stop 3G service by the year 2025 and for this the government should restrict the import of phones that do not use VoLTE technology. In addition, he said that there should be no delay in moving Nepal's telecom business to subscription model. Bhupendra Bhandari, Chairman of Nepal Telecommunication Authority, said in the
program that if the coverage of 4G is not 100% across the country, it will be completed within a year. He was of the opinion that it would be more appropriate to stop 3G first than to stop 2G immediately according to the capacity of the consumers. Stating that the quality of telecommunication services has been decreasing recently, Bhandari said that it needs to be improved. He argued that it is wrong to say that the size of telecommunication services has decreased and that the business has shifted from telecom to ISP. He suggested that new investment in the telecommunication sector should be focused on ways to increase business. Bhandari said that 5G can be started in the main 8 cities of the country and argued that it is not true that the technology is too expensive.
President Bhandari informed that the authority is ready to give approval within a week after the operators applied for 5G. He said that there is a need for a discussion regarding the complaint that WiFi mobility is affecting the income of telecommunication operators. He also said that it is necessary to put an end to the situation where 48 percent of the total income of the telecommunication company goes to the state under various headings. In the
program, Minister of Communication and Information Technology Prithvi Subba Gurung said that it is necessary to organize the telecommunication sector and overcome the challenges. Minister Gurung suggested the telecom operators to work with a new style. Pointing out that a new style is needed in telecom companies to solve the problem of declining income, Minister Gurung said that the government is serious about reforming the law. Admitting that the regular role is not enough, he informed that the draft of the new Telecommunication Act is in the process of preparation. He also said that work is being done to draft a new law to make it up-to-date by covering issues such as permit fee, new technology, etc. He instructed the regulatory body, Telecommunication Authority, to do the work of regulation without being biased.
Communications Secretary Radhika Aryal said that the financial situation of telecom companies is deteriorating and the situation has added to the concern. He said that the time has come for all agencies involved in regulation, implementation and planning to sit together. She urged all service providers to strictly implement the law. He said that once there were 6 telecommunication service providers, now there are only 2, making this sector more risky.
