Nepal’s leading telecommunication giant Ncell celebrates today its 19th anniversary. Having started as Mero Mobile back in 2005 and to date serving as Ncell, the private telco has been a pivotal force in Nepal’s digital transformation goals and a key protagonist for connectivity. In this article, we chronicle Ncell’s journey in Nepal, its contribution, and the challenges of the telecommunication industry as it enters its 30th year.
Ncell has seen it all and given it all. That should be the right phrases to summarize Ncell’s role and contribution. Ncell’s journey started as Mero Mobile, established in 2004 and operating since 2005. It’s the first private-sector GSM cellular telecommunication service. On the occasion of its 19th anniversary, Ncell hosted an event where it announced Ncell Foundation, its latest CSR project to head more community projects.
The company’s role catapulted connectivity in Nepal. When Ncell began its service in 2005, only 6% of Nepalese were connected by mobile subscriptions. Fast forward to 2024, Ncell alone serves 16 million users while mobile service has reached over 115%.
To its credit, Ncell gave customers affordable data and voice services in a time when the same were not or less available making mobile services approachable to regular people. To say the least, Ncell made it easy to get SIM cards which was unthinkable when it started. Remember the time when people had to line up since the dead of the night to get an NTC SIM? Ncell started differently with convenience, affordability, and accessibility for the customers in mind.
The company also launched its high-speed 3G broadband services in hotspots such as Everest Base Camp (EBC) in 2010, a milestone for the company as well as the country.
Still, the ambition is high at the private telco. The company continues to work to connect everyone in Nepal with high-quality, advanced, and cost-effective services from far-flung remote regions to those in urban areas.
With Axiata leaving Ncell in late 2023, Spectrlite UK Limited now acquires 80% of equity shares in Ncell which also means it owns 100% shares of Reynold Holdings. Ncell says that Spectrlite UK, a UK-based company, is driven by more innovation, investment, and life-changing services for the users.
Axiata, a Malaysian telecommunication giant took over Ncell in August 2020. The company was later converted into a public limited company.
Ncell’s technology: From EDGE to 4G
Since its inception, Ncell has remained instrumental in providing advanced telecommunication services. The company has introduced innovative technologies that ensure users get the best services possible.
In key milestone years up to its 19th anniversary, Ncell has had some key years. Before we list all of them below, let’s talk about the major two years. The company launched 3G in 2010 and then 4G in 2017 giving customers modern and enhanced mobile data services. 3G gave users high-speed data that enabled video content without buffering while 4G brought a remarkable transformation.
In sum, the company has deployed GSM, EDGE, 3G/HSPA+, DC-HSDPA, 4G, VoLTE, and eSIM in its network. It has also started Carrier Aggregation using an additional 2100 MHz band. If you want to know what these means, check out this post: Meaning of mobile network signs
Ncell enjoys over 90% of 4G coverage across Nepal. However, only 2 out of 10 use data regularly. Nepal’s mobile data usage is one of the lowest in South Asia. It’s also more startling that despite a six-fold growth in smartphone access and 48% data penetration, data usage has not been incremental. According to Ncell, only 13% of subscribers use mobile data.
Find: How to easily get an Ncell eSIM subscription
Socio-economic contribution
Ncell continues to remain the government’s key economic contributor and support for building a sustainable business for the country’s advantage.
As of FY 2023/24, Ncell has contributed Nepal government with over Rs 320 billion in taxes and fees supporting a range of public financing for the government.
Also, the telco paid Rs 47 billion in Capital Gains Tax (CGT) for a change in shareholding in 2016. The contribution goes beyond this. The company has direct and indirect employment support across the country giving opportunities to 25,000 people.
Social Contribution (CSR)
The leading telco consistently plays its role in various community upliftment projects relating to education, health, disaster recovery, environment, etc. complying with the government’s CSR law and efforts to achieve the Sustainable Development Goals (SDGs). So far, it has contributed over Rs 2 billion to various CSR/sustainability projects.
Other valuable contributions remain in the Ring Road Green Belt, the Telemedicine and Personalized Health Programme for underserved communities, and the establishment of high-tech Digital IT Labs in 60 government/community-run schools across the country.
Ncell’s role was also conspicuous during the COVID-19 pandemic earning national and international recognition including the World Communications Award 2021. The company also joined in efforts during the flood and landside in 2014, the earthquake in 2015, and the Jajarkot earthquake in 2023.
Related: Ncell CSR community projects underway across all 7 provinces
Current telecommunication environment
But despite Ncell enjoying huge subscriptions across Nepal, the current outlook of telecommunication is not at its brightest. Both Nepal Telecom (NT) and Ncell are facing revenue decline owing to the growth of OTT services, the ILD (international long-distance services) fall, and low data service contributions.
Ncell data has been instrumental for the company to generate revenue, however, their prices have fallen consistently due to competition. The lack of government provisions to balance service charges with investment and inflation has further worsened the situation. As a result, the revenue has dropped 25% in the last five years.
It is estimated the revenue will drop further by Rs 16 billion in the next 5 years, which translates to a government revenue loss of Rs 3.7 billion due to a Rs 4.3 billion drop in telecom’s variable component.
In contrast, neighboring countries such as Sri Lanka and Bangladesh have seen exceptional growth of 40%.
In the past few years, we have seen telecom companies such as United Telecom Limited, Smart Telecom, Nepal Satellite Telecom, and CG Telecom losing their licenses or exiting the market due to rigid legal frameworks. Ncell says that a stable and predictable external environment is necessary to reverse the situation for the remaining two- itself and NT. The telecom industry faces multi-pronged challenges of Rs 11 billion in fixed obligations annually amidst dwindling revenue each year.
GDP is hit hard
Its impact likewise, has been felt. The telecom sector’s GDP fell from 5% to 2%. At the same time, the Rs 100 billion market has fallen to Rs 75 billion. Also, capital expenditure is almost three times profit after tax. That means companies like Ncell are investing in future growth at the expense of current profitability.
Low digital literacy and restrictions on the operation of DVAS (Digital Value-Added Services) haven’t helped Ncell as well as NT.
As revenue and profits shrink, the industry is having to invest 2-3 times its profitability only to maintain its network.
Going ahead, Ncell is ready for 5G and the company has also launched Sadhain ON Pack in line with its broader goal for the next-generation technology. However, to bring 5G in Nepal, the country will need Rs 60 billion which is 12 times higher than the current profit the industry is managing. Therefore, achieving it in the next 2-3 years looks only challenging.
While there are challenges, solutions are also there. To devise an amicable and win-win situation for the industry, the government, NTA, policymakers, and all stakeholders need to prefer a multilateral discussion. Stirring away to the more positives now, let’s talk about the accolades Ncell has received over the years.
Don’t miss: Easy steps to get Ncell VoLTE subscription in 2024
Ncell 19th anniversary offer
On the occasion of its 19th anniversary, Ncell has announced a 19% discount on Sadhain ON packs. The offer is only applicable on pack purchases via the Ncell app.
Awards and recognition
As Ncell marks its 19th anniversary, Ncell has garnered a stack of prestigious local and international recognitions. Here is the complete list of all the telco has been honored with for its exceptional cellular service and CSR projects:
- NBI Business Resilience Award 2024—Best Practitioner,
- Fastest Mobile Network in Nepal in 2022,
- Asian Telecom Awards 2022,
- Excellence in Employer Brand Award 2022,
- TM Forum 2021 Catalyst Awards,
- World Communication Awards 2021,
- Asia’s Best Employer Brand Award 2021,
- Asian-Oceanian Computing Industry Organization (ASOCIO) Awards 2021,
- World Information Technology and Services Alliance (WITSA) Global ICT Excellence Awards 2021,
- National HR Excellence Award 2028 and 2024,
- Dr. Rishi Ram Sharma Disaster Response and Readiness Award,
- Global Mobile Awards (GLOMO Awards) 2016, among others.
Major milestones of Ncell service in Nepal | Timeline
Here’s the complete list of major milestones with a timeline of Ncell from the year 2005 to 2023.
| Milestone | Content | Date |
| Mero Mobile starts service | Mero Mobile starts ringing | September 17, 2005 |
| TeliaSonera enters Nepal | TeliaSonera takes over Spice Nepal | September 27, 2008 |
| Mero Mobile rebranded | Mero Mobile rebranded as Ncell | March 12, 2010 |
| Ncell expands 3G in Everest | Ncell expands 3G to Everest region | October 29, 2010 |
| Ncell largest operator | Ncell clinches No 1 spot from Nepal Telecom | May 3, 2011 |
| Ncell largest taxpayer | Ncell honoured as the largest taxpayer | November 18, 2015 |
| Axiata’s entry in Nepal | Ncell enters Nepal | April 13, 2016 |
| Ncell’s new brand logo | Ncell unveils new brand logo | August 18, 2016 |
| Ncell 4G launched | Ncell launches 4G | May 31, 2017 |
| Ncell N4B | Ncell brings N4B for enterprises | July 25, 2019 |
| Ncell clears all CGT | Ncell enters the Nepal market | April 12, 2020 |
| Ncell changes its name | Ncell changes its name to Ncell Axiata Limited | August 3, 2021 |
| Ncell becomes public limited | Ncell converted into public limited company | August 3, 2021 |
| Ncell launches Ncell VoLTE | Commercial launch of Ncell VoLTE | September 5, 2022 |
| Ncell launches eSIM | Announcement of eSIM launch | November 25, 2022 |
| Announcement of new number range 970 | Ncell to start providing new mobile number range 970 | May 9, 2023 |
| Axiata, Ncell Confirms Receipt of ICSID’s Arbitration Award | ICSID dismisses the claims made by Axiata UK and Ncell on CGT imposed | June 9, 2023 |
| Ncell announces sale transaction | Spectrlite UK Limited enters, Axiata exits | December 1, 2023 |
As Ncell celebrates its 19th anniversary, Nepalitelecom.com extends its profound congratulations and best wishes for its future growth and achievements.
