Nepal Telecom (NTC) suffered a slump in its average revenue per user (ARPU) owing to the slow 4G LTE and FTTH expansion. The latest 59th report by the Office of Attorney General (OAG) derives that the slow expansion of internet services has manifested in the company’s revenue losses. The report is pertinent to FY 077/78.
Among multiple services, the OAG reported PSTN, GSM, and ADSL divisions suffering losses. The findings were drawn in comparison to the previous FY 076/77 report.
From PSTN service, Ntc earned only 2 thousand, 7 hundred and 72 rupees per user in FY 077/78. This is a decrease of 15.16% from the previous FY 076/77 where the company was earning 3 thousand, 2 hundred, and 68 rupees per user.
GSM which holds the majority of Ntc’s services also suffered a revenue loss of 4.15% in FY 077/78. In FY 076/77, the company earned 1 thousand, 3 hundred, and 40 rupees per user. This slumped to 1 thousand, 2 hundred, and 84 in the following FY 077/78.
Similarly, the negative numbers also translated to the company’s ADSL service. The report shows the telco earning NPR 4 thousand, 6 hundred, and 43 per user on average in the FY 076/77. This decreased by 1.8% in the FY 077/78 to climb down to 4 thousand 5 hundred, and 56 rupees.
FTTH, lease line, and others continue to rake in big for the company
While Ntc saw a slump in revenue in some services, it has made amends with CDMA, FTTH, and Lease Line internet services.
In CDMA, the company earned an average of 4 hundred and 56 per user in the FY 077/78. This is an increase of over 138% from the previous FY where it made only 1 hundred and 95 rupees off one user.
At the same time, Ntc also made higher revenues from its popular FTTH and lease line dedicated internet services. Both divisions brought the company over 66% and 28% revenues compared to the FY 076/77. The telco’s FTTH service brings Triple Play features that include high-speed internet, digital TV, and voice service.
The slump in revenue down to Ntc facing strong data competition too – OAG opines
Meanwhile, OAG tells that Ntc has witnessed strong competition in mobile data segments. Besides, it has not expanded its 4G LTE network and FTTH service as expected. This has affected the company by drawing higher per-user revenue.
The ‘office’ suggests that Ntc introduce new technologies, focus on implementing commercial plans timely, and address the demands of its customers to up its revenue growth.
The same report also highlights the less-than-expected expansion of GSM and FTTH services. For 4G, the telco set up the infrastructure of a new core and separate Radio networks of 1 and 2. The project was to be complete by 2020, but it’s not done yet. Similarly, the fiber internet service has only upgraded 81 thousand, 3 hundred, and 83 customers which are 51% till Ashar, 2078. The FTTH service of Ntc is aimed at replacing the dated ADSL system.
At this, the OAG suggests, the company adheres to the demands and provides high-quality services to reverse the falling revenue slump.
Nepal’s largest telecom operator Ntc is a multi-purpose telecom service provider. The company turned public from a government-owned corporation back in 2061. After becoming a public company, Ntc has the backing of the government with a 91.5% share. Likewise, Citizens Investment Fund owns 0.03% shares, and the general public owns 8.47% shares. There are plans that Ntc will allocate 20% shares to the public.
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