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Smartphone penetration in Nepal and the impact

Recent years people prefer smartphones for their ability to make people dumb. Kidding!! Not really, we mean to say smartphones helps to make our life easier for the ability to perform several stuffs. Now, smartphones have also taken over many other gadgets like Camera, GPS, PDA and even Computers. People even use smartphones as makeup mirror, Credit or debit card and many more.

As a matter of fact, smartphones are now ultimate companion of human being. But better not to be addicted. Check for yourself your addiction level here. This post is not about what smartphones do, their preference reason and the addiction. But it is about the percentage of people having smartphones in Nepal, a.k.a Smartphone penetration.

Most of the developed countries have smartphone penetration in the range of 70 to 90 percentage. But the average smartphone penetration of the world is around 50 percent now. It is due to the developing countries and LDCs. Although these countries have lower values of smartphone percentage, the numbers have rapidly grown in the last few years.

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Smartphone penetration in Nepal

The measure for the smartphone users in Nepal was also way below if you see the data before some years. It was 15 percent in the year 2013 according to Kantipur post. Now with the availability of many affordable smartphones and soaring applications, the smartphone percentage in Nepal has grown rapidly.

According to the Ncell report in 2018, the smartphone penetration in their network was 52 percent then. As we can consider the same kind of penetration in state-owned company Nepal Telecom. So, we can say the smartphone penetration in the country had crossed 50 percent mark back in 2018.

That means every other person is using the smartphone in Nepal or in another way more than half of the Nepalese use smartphone today. It also lies in the same range as World’s average smartphone penetration.

Latest trend of smartphone penetration in Nepal shows it grows by 10 percent in total each year. In the year 2016, the value crossed 40 percent whereas this value reaches 50 percent in 2017.

There are several reasons for this penetration to go up. First people (either working or studying) who come from abroad bring smartphones with them. Secondly, it is due to the availability of cheaper Chinese brand mobile phones in Nepal like Xiaomi, Huawei, Vivo, Oppo, ZTE and many more. It is also due to people’s preference for different telco services and better use of social media applications in the smartphone.

It seems the growth of smartphone penetration has also slowed down. The latest Ncell data of 4Q 2019 shows the smartphone percentage to be 62%. As there is no such data from Ntc, we can assume the smartphone penetration in sixties for Nepal for the beginning of 2020.

What will be the impact of higher smartphone penetration?

As we find the smartphone penetration growing significantly over the years, there are many advantages in the telecommunication market with it. At first, it will help the operator to migrate their customers to new technology like 4G. The newer technologies being more efficient will help the operator to be effective in handling their network.

More the smartphone users, there will be more cellular internet users for telcos with an increase in the data usage volume. This will have a good impact on the revenues of telecom operators. So, the smartphone penetration helps to tackle the challenges of telecom operators.

Similarly for the higher smartphone use, means the better market for new applications, digital advertisement,  mobile money. It has also a significant contribution to encouraging innovative startups. The digital life enhanced by smartphones is also taken as the upheaval of overall living quality in the country.

Impact of increase in smartphone penetration

  • Increase in high data usage including multimedia content
  • Good impact in Revenue of telcos
  • Increase in usage of applications.
  • Positive impact in innovative startups based on mobile apps.
  • Make better and efficient life for individuals.
  • Addiction to the phone may increase, reducing in-person communication.

Tell us if you use a smartphone and the reason for using it in the comment section below.

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