Comm. Minister Timilsina talks of third telco, 4G/5G, service quality issues

Communications Minister Dr. Bikram Timilsina has announced that the government is keen on a new telecom operator in Nepal. In a press meet organized on Wednesday, he also said that the 5G launch will proceed only after 4G gets wider and better. He has also touched on numerous key topics that are dominant in the telecommunications industry of the country at present. Let’s get you more details on them.

Communication Minister Timilsina talks

NTA proceeds for a new operator in Nepal

Comm. Minister Timilsina said that he felt there is a need for a third telecom company in Nepal. Currently, we have two operators. We have a realization that we need another or multiple operators.

He said that Nepal Telecommunication Authority (NTA) has already taken the process forward on this issue. He added that the authority has formed a committee to study the issue of bringing in a third mobile service provider, and a decision recommendation is yet to be made. “The process will then take place. This is another priority list of ours,” Minister Timilsina said.

Currently in Nepal, there are only two telecom operators, Nepal Telecom (NTC) and Ncell. Smart Telecom is out of service after its license revocation, while CG Telecom and Nepal Satellite Telecom are also not in operation.  

It’s expected that a third telco in the country will make the industry more competitive and enhance the finances of the sector. Since 4G users in Nepal are growing along with demand for 5G, it seems lucrative for a new telco to invest in 4G and 5G network, without any 2G or 3G.

NTA has been exploring the prospect of a third operator in Nepal since 2081, with a committee formation. CG had long been expected to start a new telecom company, but that has never panned out.

But with the new government in office, there’s a new vigor and a stronger energy in favor of opening the path for the next telco in Nepal.

First 4G then 5G

The minister gave a cautionary stance regarding the switch to the 5G network in Nepal. He shared that the government is working on making 4G as effective as possible at first, before moving to the next-generation carrier network.

In the recent past, skepticism has been shared by Ncell CEO Michael Foley, who emphasized 4G priorities before 5G.

The cost of investment, limited market, and exorbitant tax policies have been some of the hurdles for Nepali operators to launch the next-generation technology. Currently, Nepal is reaching a full 4G coverage, and the future plan may be to go for a non-standalone 5G network as it uses the existing 4G hardware.

So far, NTC has trialed 5G in some major cities. Likewise, Ncell applied for 5G trial just recently. But it’s clear that the first priority here is to enhance the quality of 4G rather than focusing on 5G launch.

But having said that, the minister also maintained that launching 5G is one of the priorities of the current government. He even said that preparations are underway to determine the necessary frequencies and distribution.

Directions to improve service quality

The minister shared that the government is keen on improving the quality of the telecommunications sector. He hinted at expanding the competition in the industry, which likely includes arrangements for a new and third telecom company. Similarly, there should be proper monitoring of Internet speeds from the ISPs. Ministry of Communication has already decided to provide more frequency to Nepal Telecom. For which, NTA has recently provided 5 MHz additional frequency in 800 MHz to Nepal Telecom.

Check out: Factors affecting 4G speed in Nepal

Minister Timilsina said that the communication ministry is in regular discussions with Nepal Telecom and Nepal Telecommunications Authority (NTA) on wide-ranging issues and is ready to provide necessary assistance for the holistic improvement of the sector.

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