Nepal Government plans of expanding mobile network in remote parts of the country, utilizing the RTDF fund. Till now, the RTDF fund has been used for broadband expansion and internet in some unconnected areas. But this is the first time, Government could decide to use the fund for mobile network expansion. Find out how this initiative helps in improving mobile connectivity across Nepal.
Normally telecom operators do not find it lucrative to expand the mobile towers in remote areas with low population density. Nepal has the most uneven and difficult terrain in the world. So, the country still has significant unconnected areas. Where the infrastructure cost and installation are high. So, telcos hesitate to invest heavily in such geographically difficult areas, due to ROI issue. But it may not be the case always, as some of the most difficult terrains provide higher return too.
RTDF (Rural Telecommunication Development fund) is a fund collected from telecom companies to support connectivity in rural areas where commercial expansion does not seem viable. The main objective of the fund is to bridge digital divide and promote rural economic growth. NTA (Nepal Telecommunication Authority) collects RTDF fund with 2% of total annual income from telcos and ISPs. It is a huge fund ready for building infrastructure like backbone network, telecom towers, high-capacity microwave links etc. In FY 2080/81 alone, 63 service providers contributed NPR 2.32 billion to the RTDF. Among them, the highest amount is from Ntc and Ncell, that contributed NPR 683 million and NPR 678.5 million respectively.
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Using RTDF for building mobile network in rural areas
NTA has now put forward this idea of mobilizing funds from RTDF for mobile network expansion. Although telcos are building networks in commercially viable areas but for low population rural and highways are lacking mobile towers. However, NTA has identified such areas where RTDF fund is going to be used for building mobile network.
For which, NTA has submitted the proposal to Ministry (MoCIT) to agree in principle for the mobilization of RTDF fund. As known, they have already identified 500 new locations to put up mobile towers. Assuming the cost of each tower in most difficult rural areas to be around 1 crore, the total cost of the project comes around 5 billion NPR.
Currently, there are 4 projects that utilizes RTDF fund. Among them, 1 such project is for building broadband network in local bodies, schools and health institutions in 74 districts. Similarly, other RTDF projects are for broadband in earthquake affected districts, broadband in community schools and 1 for the construction of information highway (using optical fiber) in mid-hill highway.
As mobile networks require heavy infrastructure investment and costs are even higher in rural areas, using RTDF fund for the mobile network expansion is a necessary approach to provide wider connectivity and ensure digital inclusion. Though the modality of utilizing the funds is not finalized yet, it seems NTA will assign the RTDF based mobile network expansion project to Nepal Telecom for the implementation.
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FAQs
No, RTDF fund has not been used for mobile network expansion in Nepal.
RTDF is a fund collected from telcos, ISPs to expand connectivity in rural and unconnected areas.
NTA (Nepal Telecommunication Authority), the regulator of telecom sector manages the RTDF.
Nepal Telecom and Ncell contribute the most to RTDF.
The benefits of using RTDF for mobile network expansion are digital inclusion promotion, digital economy boost, disaster response improvement etc.
The total cost of building mobile tower (from infrastructure to telco equipment) is around 1 crore NPR.
