Last Updated on September 20, 2024
Ncell has issued its official statement as news of it supposedly reaching a deal to buy Classic Tech took the market by storm. Releasing a presser, the private telco gave its position regarding whether it’s in a final state for a takeover of the prominent internet service provider without explicitly mentioning its name.
Ncell deemed the claims that it has already acquired shares of an ISP “premature and speculative”. There were suggestions that the company bought Classic Tech’s shares at Rs 90 per unit, however, the telco has dismissed them.
But the company did reveal that it’s “actively exploring opportunities in the ISP market,”. Ncell added, “We remain committed to conducting thorough discussions and assessments. Our goal is to ensure that any potential decisions align with both the strategic objectives of Nepal and the broader telecommunications industry.”
By issuing this statement, Ncell has tried to calm the speculations about its takeover of an ISP (Classic Tech). The news broke on Thursday, September 19 that it had acquired shares of Classic Tech and is prepared for a takeover.
Ncell further added that it remains committed to contributing to the digital ecosystem in Nepal and stressed expanding its services.
“We believe that by expanding our offerings, we can empower individuals, support businesses, and ultimately foster a more connected and digitally inclusive Nepal,” the telco said.
Check out: The top internet service providers in Nepal and make your decision for your home WiFi.
Is Ncell buying Classic Tech or not?
There were suggestions that Ncell eyed Classic Tech for its ISP venture to diversify its businesses and be more competitive. The telco hasn’t implied that there is no deal with Classic Tech so, that allows us to believe that the agreement between the two could be in an early stage.
Ncell says that it prioritizes transparency and open communication with stakeholders and will provide information to the public with latest development. The telco also requested media outlets to authenticate facts before publication. It said that its decisions are always reflected in the best interest of Nepal, customers, and stakeholders.
Don’t miss: Ncell’s TikTok pack for unlimited access | Volume, price, subscription
Ncell does reveal its interest in the ISP business though!
Ncell has declined that it’s cut a deal for Classic Tech acquisition. However, the telco clearly states that it is “actively” seeking an ISP opportunity. And if it materializes, it will be the first time that a telecom company will have acquired an internet service provider with fiber service. The will move also catapult Ncell in the active fixed internet market. Regulator Nepal Telecommunication Authority (NTA) has talked of ISP merger but Ncell could be on a unique adventure here.
Ncell has recently renewed its GSM cellular license for the next five years. Entering the ISP business will be meaningful. The telco reaches 25 years in service in 2086 and might have to think of what is after it. The takeover of an ISP could be important for its sustenance and business diversification.
Although telcos and ISP fall into different service categories, they seem to be competing for a market like Nepal where fewer people use mobile data on the go and WiFi (with mobility) is everywhere. However, Ncell wants to use the internet network to complement each other in this challenging environment.
Ncell’s immediate competition- Nepal Telecom (NT) operates both mobile and FTTH internet under NT Fiber. Ncell could still be on the path to emulating the same with the acquisition of an ISP whether it’s Classic Tech or else. Speaking of which, Classic Tech has 1,63,160 users across the country. Recommended: Latest fiber internet user data in Nepal
What do you think of the entire development? Is buying an ISP going to be a monumental decision for the private telco? Do share your opinion in the comment box below.
