Case Study: Nepal Telecom

Background and Overview

Established in 2004 after being transformed from a government department into a
corporation, Nepal Telecom (NT) is the largest telecommunications provider in Nepal. As a
semi-government organization, NT serves both the urban and rural population with
services ranging from mobile and landline connectivity to broadband internet and digital
TV. Nepal Telecom has played a significant role in advancing digital connectivity in Nepal
and is instrumental in implementing nationwide infrastructure to support digital
transformation.

Key Challenges
 Infrastructure and Geographic Barriers: Nepal’s mountainous terrain and scattered
settlements pose a significant challenge for telecommunications infrastructure
development. Laying fiber optic cables and establishing mobile towers in remote areas
is costly and logistically challenging, leading to slower connectivity expansion in rural
regions.
 Intense Market Competition: The telecommunications market in Nepal is highly
competitive, with private companies like Ncell challenging Nepal Telecom’s market
share. NT faces pressure to provide high-quality, affordable services to retain its user
base amidst fierce competition.
 Technological Adaptation and Upgradation: As technology in telecommunications
rapidly evolves, Nepal Telecom faces challenges in upgrading its systems and services to
keep pace with global standards. Investment in new technologies such as 4G and
upcoming 5G networks requires significant capital, which is challenging given NT’s
public ownership and bureaucratic constraints.
 Regulatory Constraints: Being a semi-government entity, Nepal Telecom operates under
government policies and regulations that may slow down decision-making processes.
The need to align with national regulations on pricing, service standards, and expansion
plans often reduces NT's agility compared to private competitors.
 Quality of Service and Customer Satisfaction: NT has faced ongoing criticism regarding
network quality, slow internet speeds, and customer service issues. Improving these
areas has been challenging due to the need for extensive infrastructure improvements,
staff training, and a customer-centric organizational shift.

Strategic Initiatives
 Expanding Rural Network Coverage: Nepal Telecom has prioritized expanding network
coverage to rural and underserved regions. With initiatives to install base stations and
deploy wireless services, NT aims to bridge the digital divide. Government support and
partnerships have helped accelerate this expansion.
 Adoption of 4G and Planned 5G Rollout: NT launched 4G services in 2017, providing
high-speed internet to several regions. It is now testing 5G technology to remain
 competitive and meet the growing demand for data-intensive services. These upgrades
demonstrate NT's commitment to advancing Nepal’s telecommunications
infrastructure.
 Partnership with International Organizations: Nepal Telecom has collaborated with
international technology providers for infrastructure development, including
partnerships with companies like Huawei and ZTE for equipment and technology. These
collaborations have allowed NT to benefit from advanced telecom solutions and
expertise, enhancing service quality.
 Customer Service Improvements: NT has made efforts to improve its customer service
by introducing call centers, online support, and dedicated service centers. This initiative
aims to address customer grievances more efficiently, although further improvements
are needed to meet consumer expectations fully.
 Fiber-to-the-Home (FTTH) Expansion: NT has focused on expanding its FTTH network,
providing faster internet speeds to households and businesses. FTTH expansion is part
of NT's strategy to improve internet connectivity and meet the growing demand for
high-speed data in urban areas.

Outcomes and Current Status

Nepal Telecom has achieved several milestones in expanding network coverage,
particularly in rural regions, contributing significantly to Nepal’s digital connectivity. NT
remains a major player in both mobile and broadband services, with a large subscriber
base. However, its market share has been challenged by private competitors who offer
faster services and a more agile customer experience. NT’s ongoing efforts to roll out 5G and
enhance fiber connectivity reflect its commitment to improving its services and staying
competitive in the market.

Recommendations
 Accelerating Technological Upgrades: To maintain a competitive edge, NT should focus
on upgrading its technological infrastructure, particularly with a timely 5G rollout.
Investing in newer technology will help NT meet the demand for high-speed internet
and support future data requirements.
 Customer-Centric Service Strategy: NT could benefit from a more customer-focused
approach, including enhanced customer support channels and proactive service
improvements. Regular feedback collection and service adjustments based on user
experience can improve customer satisfaction and retention.
 Enhanced Marketing and Branding: To compete effectively with private companies, NT
should enhance its branding and promotional efforts. Highlighting NT’s nationwide
network and competitive pricing could attract new customers and strengthen loyalty
among existing users.
 Streamlining Operations and Decision-Making: Reducing bureaucratic delays and
streamlining operations can enhance NT’s ability to respond swiftly to market demands
and technological changes. This could involve empowering management to make agile
business decisions within regulatory frameworks.
 Strengthening Data Security and Privacy Protocols: With increasing concerns around
data security, NT should prioritize cybersecurity and user privacy. Implementing
stronger security measures and educating customers about data protection will help
build trust and differentiate NT in a competitive market.

Conclusion
Nepal Telecom has been instrumental in building and expanding Nepal’s
telecommunications infrastructure, contributing to digital access across the country.
Despite challenges in modernization, regulatory constraints, and intense competition, NT
remains a key player. Strategic investments in technology, a focus on customer experience,
and operational efficiencies could further enhance NT's market position and enable it to
continue supporting Nepal’s digital future. With the right approach, Nepal Telecom can
maintain its legacy while adapting to the evolving demands of the digital era.