Nepal Telecommunications Authority (NTA) is preparing to grant a license to a new and third telecom company in Nepal. Reportedly, the authority is open to a new telco’s entry to operate 5G services.
As per reports, NTA will soon undertake an in-depth study about allowing a third telecom operator in Nepal. This will likely up the prospect of a faster 5G approach and a more competitive industry in the future.
The authority has submitted a work plan that includes a study on a third operator and preparing a 5G roadmap in three months. The initiative follows the government’s objectives for the telco industry which is currently rife with challenges.
When will the third telecom company launch in Nepal?
According to NTA sources, the government is working on bringing a third telecom company soon to Nepal. The source said that the Communication Ministry (MoCIT) is hardly pushing NTA to deliver the achievement on a fast track.
It’s also claimed that the study is just a formality. The source shared that the current PM KP Sharma Oli and Communication Minister Prithvi Subba Gurung are eager for a new telco. NTA is waiting on a green signal from MoCIT to start its study.
Similarly, further confirmation has arrived through NTA spokesman Santosh Paudel who acknowledged that the authority has planned to initiate a study into bringing a third telco. The authority would also study if the country needs a third telco player.
“We have already contacted the Communication Ministry to start the study. If the finding derives that the country needs a third telco, we would allow a new operator in Nepal. We have also submitted our work plan to the ministry,” Paudel added.
So, we can assume that the plan for a new telco could bear fruit by the end of the current fiscal year FY 2081/82.
Do Read: How many telecom operators are needed for a country like Nepal?
New or old?
Previously, there were talks of Chaudhary Group (CG) gaining a telecom license. But the prominent business house couldn’t obtain approval, and its plans remain on hold. Instead, the business house launched CG Net which inspired a speed war in the ISP market.
The prospects still remain high for CG to get a telco license. Or, maybe, an entirely new venture would enter the market.
Check out: The Internet History in Nepal: 1995 to 2021
Issues with NTC and Ncell could lead the way for a third telco
NTA believes that Nepal Telecom (NTC)’s difficulties with 5G and Ncell’s looming license expiration in 2086 mean that the country needs a new private operator. As is known, NT’s 5G trial stalled after two years of internal testing while Ncell though claimed to be 5G ready, will likely have a license saga in the next five years. Do note that Ncell also launched its industry-defining Sadhain ON pack as a step towards 5G.
That means the government would need a competitive and financially stable telecom operator that would deliver and compete with 5G network and other advanced technologies. Both NT and Ncell have recently renewed their licenses.
Talking about the industry, there are currently two telecom companies- NT and Ncell. Smart was expected to break the duopoly of NT and Ncell but failed miserably towards the end while UTL and CG both have seen their licenses revoked.
Benefits of a new and competitive telecom company
A new telecom would bring much-needed benefits to the industry as well as the end users. First of all, users will get better quality services while services like data and voice will also come at competitive rates. According to the sources, the government also plans the same with the new operator.
Particularly, the government wants to stress the new company around data service. The government wants to improve 4G accessibility and prepare 5G infrastructure with the new venture.
“It’s a government’s responsibility to provide better services through a new operator compared to the current two active companies. There is a challenge to monetize data services while revenues from voice are gradually declining. So, we are looking for a strong operator that would invest in 5G, an MoCIT official said.
Communication Minister Gurung has recently said that the government will extend 4G to all local levels and 5G in major cities in FY 2081/82. Ntc has extended its 4G coverage to 98% local levels. However, the service remains discrepant and questions about consistent quality have been constant.
Ncell, likewise, is also expanding its voice and data services. However, the company faces its own issues with license and falling revenue just as Ntc. So, a new operator might add major value and growth to the dwindling telco enterprise.
Our thought
It could add great value to the customers as well as the industry to have a new telecom company in Nepal. So long and so far, NT and Ncell have enjoyed duopoly but the customers have often called for high-quality services. While both have invested resources and efforts, works remain in progress. A third operator might address those loopholes.
We just hope that the next telco, if there will be one, will be competitive and full of resources to sustain through hard times. We don’t want to see the fate of Smart and UTL repeated with the next ambitious company.
The current government looks highly motivated to invest and lift the game for the telecommunication industry in Nepal. The customers have long called for a new telecom company for healthy competition. This largely emanates from high-quality services and more affordable voice and data packs. Let’s see how NTA and the government work with its plan for a new telco in Nepal.
Do you want a new telecom operator in Nepal? Why and what would be your expectations? Do share with us in our comment section below.
