How much do the ISPs in Nepal earn? The question may leave you wondering as the fiber internet users close in on 1.7 million and the ISP market is booming with the internet speed war. So here, we will detail how much Nepal’s prominent companies collected last FY year 077/78.
In the list, WorldLink stays atop. Also Nepal’s largest ISP in terms of subscribers, the company collected over 4 billion, 21 crores, 98 lakh in revenue. The report submitted to telecom regulator NTA reveals, Techpana reported.
The regulator has provisioned that every telecom company in Nepal shall contribute 2 percent out of their income to the authority. The amount goes to the Rural Telecommunications Development Fund (RTDF). Then there is another 4 percent payment in royalties. For RTDF, WorldLink contributed a total sum of 8 crores, 43 lakh, 97 thousand last Fiscal Year. Meanwhile, the company paid 16 crores, 67 lakh, and 95 thousand in royalties.
Subisu came as the top second-highest revenue collector but the margin with the top grosser WorldLink remains wide. The cable internet pioneer pulled in 1 billion, 21 crore last FY 077/78. Out of it, the ISP paid 2 crores, and 42 lakh for RTDF. Likewise, it paid 4 crores, 93 lakh, 67 thousand in royalties.
Earning of ISPs
Vianet ranks third with more than 1 billion, 14 crore, and 31 lakh in the same period. The company paid 2 crores, 28 lakh, 62 thousand for RTDF. As for royalties, it paid another 4 crores, 58 lakh, and three thousand.
Another private ISP Websurfer came ahead of other notable names. The company had generated 32 crore revenue last FY. Communications, and Communicate drew in 23 crores, and 61 lakh.
Meanwhile, Classic Tech, Broadlink, and Tech Minds among other ISPs have not paid their RTDF and royalties in time.
The earning statistics show a wide gulf between the ISPs. There is a difference of 3 billion rupees. But it is also obvious as each company’s earnings are determined by the number of its subscribers. WorldLink serves more than 5.5 lakh customers in Nepal. Subisu serves below 2.5 lakh which is less than 3 lakh subscribers of WorldLink.
However, the gulf improves down the line. Both Subisu, and Vianet average around 1.17 billion. Although at the tail, it is very less.
As per NTA, there are currently 53 ISPs in Nepal serving fiber, cable, and wireless internet. Main ISPs buy their bandwidth from upstream providers Airtel and Tata in India. Other companies in Nepal buy their bandwidth from the major ISPs in Nepal. The source of bandwidth purchase also significantly influences the ISPs’ earnings.