1

Table of Contents
Abstract............................................................................................................................................3

1. Introduction..................................................................................................................................4

2. Background of the Company.......................................................................................................4

3. Management Challenges..............................................................................................................7

4. Recommendations........................................................................................................................9

Enhancing Business Ethics: Transparent Financial Reporting and Compliance Measures.........9

Strengthening Global Management: Local Leadership and Regulatory Collaboration...............9

Boosting Innovation and Competition: Investments in 5G and Digital Transformation...........10

Strengthening Sustainability: CSR Expansion and Eco-Friendly Business Practices...............10

5. Conclusion.................................................................................................................................11

References......................................................................................................................................12
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Abstract
The research analyzes Ncell Axiata Limited as Nepal's leading telecommunications service
provider while investigating its main management hurdles within present-day business
operations. The study points out four essential management hurdles that Ncell Axiata Limited
must overcome including business ethics and global management and innovation and
competition and sustainability supported by corporate social responsibility. The tax controversy
together with legal disputes involving Ncell affected both its financial stability and public trust
levels. Being part of Axiata Group presents Ncell with challenges to synchronize Axiata's
international operational plans with Nepal's specific regulatory requirements. The market
competition between NTC and Smart Telecom has increased the need for Ncell to advance its
technology particularly in the areas of 5G and AI-driven services. Brand reputation along with
corporate responsibility depends on sustainability and CSR initiatives for its sustenance.

The report presents four suggested strategic solutions to tackle these problems which include
financial transparency practices alongside enhanced regulatory coordination and technological
investment and social corporate responsibility expansion Ncell's business success will continue
through long-term development by implementing these strategic measures to enhance market
position and operational efficiency and drive digital development in Nepal.
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1. Introduction
Modern organizational management faces numerous tricky issues which require proper strategies
to address them. This paper aims at assessing the current managerial issues in Ncell Axiata
limited as a leading Telecommunication service provider company in Nepal. Thus, the aim of this
academic study is to identify key issues of Ncell Axiata Limited as a company having analyzed
business ethics, management, and competition, innovation and sustainability with
recommendations of improvements.

Therefore, the primary objective of this analysis is to examine Ncell’s approach to managing
challenges that are inherent to business operations while continuing to maintain its competitive
hegemony in the marketplace. This paper evaluates businesses’ success using the Analysis of
Ncell Communications’ taxation issues and regulations and Technological advancement and
Corporate Social Responsibility as a way of providing some guidance towards industrial
sustainability. The research also performs an orderly evaluation to enhance comprehension of
contemporary trends of handling business in the telecommunication industry.

Ncell Axiata Limited was incorporated as a private telecom operator in Nepal in the year 2004
and it is wholly owned by Axiata Group Berhad (Malaysia) since 2016. Ncell Axiata Limited is
engaged in offering mobile telephony and data services, products and connectivity solutions to
millions of users across Nepal. This paper analyses how since the first telecoms operator in
Nepal since 2004 Ncell positively impacted digital advancement however the company faced
challenges from regulation policy, market competition force; and technological advancement.

2. Background of the Company

Company Overview

Ncell Axiata Limited is the leading private telecommunication service provider throughout the
country of Nepal. Mero Mobile was established in 2004 and later on transformed into Ncell in
2010. Ncell was acquired by the Axiata Group Berhad in September 2016 through the
completion of a massive corporate takeover of the Nepalese firm by the multinational
telecommunications firm from Malaysia. Ncell’s major owner is the Axiata Group Berhad
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through which Ncell is in a better position to support the expansion of the regional operations
(Ncell, 2024).

Services and Market Presence

Ncell Axiata Limited is one of the best private telecommunication service providers in Nepal and
offers millions of customers including mobile and digital communication products in the country.
The main business of Ncell Axiata Limited is providing an unimpeded telecommunication
connection in terms of voice and Short Message Service or SMS throughout the geographical
region of Nepal. Ncell Axiata Limited integrates 4G LTE services with mobile data because
cellphone users require quick internet most of the time to ward off the personal customers as well
as business clients (Skillednepal, 2024).

International roaming from Ncell operates as an essential capability for its users to maintain
connectivity while traveling abroad. The company enhances digital economic growth in Nepal by
implementing services that include digital banking as well as e-wallet services. Through its
initiatives the company has extended financial resources to people living in regions without basic
banking services.

Enterprise solutions within Ncell continued development through connectivity services for
business operations and Internet of Things (IoT) alongside cloud computing capabilities.
Advanced technologies enable businesses to carry out digital transformation alongside better
operational performances.

Ncell has created a nationwide network infrastructure that serves all districts in Nepal to reach
both urban and rural territories. The company works to enhance its network infrastructure in
order to implement 5G technology and conducts network expansion for future mobile internet
advancements and digital service improvement (Southasiatime, 2023). The company invests its
assets in technology development and innovation to maintain its position as the top
telecommunications provider in Nepal which supports national electronic progress during the
digital era.

Core Competencies
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Ncell Axiata Limited has established itself as a leading telecommunications service provider in
Nepal through technological advancements, customer-centric services, and strategic market
positioning. One of the company’s primary strengths is its ability to adapt to technological shifts
and introduce innovative digital solutions to meet consumer demands.

 Key Strengths in Telecom Services: Ncell emerges as a leader of Nepal's telecom sector
through constant digital innovation and network performance advancement. The
company establishes its competitive position through consistently delivering dependable
mobile and data services in rural areas together with other regions of its extensive
network. Ncell, has proceeded to build infrastructures and expand the networks granting
millions of users better connection in the continuity of their services (Dahal, 2024).

 Technological Innovation: Digital transformation drives Ncell to bring substantial

investments in developing its networks alongside artificial intelligence analysis and
future-generation technologies (Neupane, 2023). Ncell develops its customer experience
through automation systems and data-driven choices and digital service delivery
platforms. The current planned implementation of 5G technology by Ncell company is a
significant strategy to continue to remain a technological giant in Nepal because of the
customers’ increasing demand for faster internet and cloud technologies.

Success Factors

1. Market Leadership & Customer Base: Currently, Ncell has established its position as
the market leader in the telecommunication sector of Nepal where its direct competitors
include Nepal Telecom and Smart Telecom. Though government backing exists for the
favor of NTC, Ncell has been able to capture large market share by offering competitive
prices and enhancing the quality of the network by offering newer services in the market.
The other factor that ensures the sustenance of the company is the firm’s ability to retain
clients as it expands its number of users.

2. Strategic Partnerships & CSR Initiatives: Ncell has successfully partnered with some
of the international telecommunication firms in a bid to enhance its networks and service
provision. The partnerships make the access to international proficiency possible which
keeps the company relevant in the transformed telecom environment.
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Challenges Ahead

The success of the Ncell company presents various management challenges such as regulatory
impediment, increased market competition and sustainability challenges. Doing business in the
Nepal telecommunications regulatory context poses operational problems to Ncell as the
company strives to sustain service improvements in presence of rival companies such as NTC
and Smart Telecom (Gautam, 2016). To ensure that clients remain loyal to a particular brand,
more emphasis should be placed on environmental concerns and corporate responsibility.

Strategic recommendations together with detailed assessments of these challenges are examined
throughout this document in order to uphold Ncell's market leadership position.

3. Management Challenges
Business Ethics: Tax Controversy and Legal Issues

The main management challenge for Ncell Axiata Limited has now turned to be paying taxes
including issues to do with the law. When Axiata Group acquired Ncell in 2016 the company
engaged in a public tax dispute with the Nepalese government that attracted the public attention
(kathmandupost, 2023). Thus, the largest controversy that Ncell Axiata Limited underwent was
primarily around the capital gains tax (CGT) issue that therefore the government claimed Ncell
owed billions for unpaid acquisition tax. This prolonged conflict which coupled with legal issues
had an even greater impact on Ncell’s corporate balance sheet as well as its image. When public
pressure and governmental inspection reached out, as a result of a scandal, both the stakeholders
and the government compelled Axiata Group to bring large amounts of taxes. Businesses need to
be fully transparent and act ethically because noncompliance with the financial rules entails
extended periods of corporate image damage and disruptions to operations.

Global Management: Regulatory Challenges in an International Setting

Ncell Axiata operates in its international environment which involves both international
corporate strategies and the national regulations that it has to adhere to since it is a subsidiary of
Axiata Group Berhad. Hence, NTA periodically reviews and changes legal conditions impacting
Ncell’s tariff setting and licensing terms and operational freedom. The company experiences this
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whenever decisions on the network expansion and pricing policies are constrained by the
government as this hampers Axiata’s broad strategies on general profit making (myRepublica,
2024). One problem that Ncell may encounter is that government changes policies often,
therefore the business environment becomes uncertain for the telecom sector in Nepal. The Ncell
management team thus experiences a lot of challenges in meeting their international orders on
one hand and at the same time ensure compliance with the existing regulations in the country on
the other hand. That is why, sustained leadership and sound legal advice along with cooperation
with the local authorities are the key measures for various companies to function within this
framework.

Innovation and Competition: Pressure from NTC and Smart Telecom

The current mobile phone industry in Nepal exists as a rivalry between NTC and Smart Telecom
because both are dominant competitors to Ncell. The government investment alongside with the
relaxed regulations have made NTC more competitive over Ncell since the latter is a state owned
enterprise (Gautam, 2016). Some of the market gains are compounded by the operation of Smart
telecom which is a small telecom company that offers cheap data solutions in addition to
networks. Such a competent industry environment pressures Ncell to continue investing in
technology and the upgrade of the network. One of the biggest challenge facing these providers
is the adoption of 5G technology. There are also regulatory holdup issues and infrastructures cost
which have frustrated Ncell implementation and trials have been delayed more than their
competitors NTC. The company needs to accelerate its digital transformation because it must
advance its service quality and customer interaction through data solution innovation and AI
customer service.

Sustainability and CSR: Corporate Responsibility and Brand Trust

The major operations of telecom business development of Ncell leads to the significant social
and environmental impacts that makes the sustainability and corporate social responsibility an
important part of the management system (Shrestha & Rai, 2022). Indeed, CSR is implemented
through various activities by Ncell including the promotion of digital literacy programs or
provision of disaster aid with support for projects on environmental conservation. It is important
to note that the company still struggles when they are in a quest to achieve and maintain a
profitable status and at the same time, pass out social outcomes. Telecom equipments are an
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example of electronic waste while networks give out carbon emissions and therefore specialist in
this field have to incorporate corresponding environmental solutions to the green business
solutions they undertake. Ncell has a big challenge in availing its CSR reports because of past
incidents that left negative impressions to the public thus needs to display ethical standard in its
operations and present relevant information about CSR activities.

4. Recommendations

Enhancing Business Ethics: Transparent Financial Reporting and Compliance

Measures
Ncell must establish a transparent financial reporting system since business ethics concerns
demand action on tax compliance and legal transparency issues. The company’s previous tax
dispute has greatly damaged its reputation and public trust therefore it should actively disclose
financial responsibilities and enforce strict compliance with Nepal’s tax regulations (Anjani,
2023). A solution is to use external independent firms for carrying out financial audits which
provide evidence of regulatory compliance and accountability.

Ncell must devote additional resources to enhance internal compliance programs by setting up an
exclusive corporate governance team that will maintain legal, ethical and financial rule
standards. The team will build a cooperative relationship with both Nepal Telecommunications
Authority (NTA) and tax authorities to fulfill all financial responsibilities. An internal
whistleblower system alongside regular compliance training for employees would help to
advance ethical business conduct while permitting staff to report misconduct with confidentiality.

Strengthening Global Management: Local Leadership and Regulatory

Collaboration
Ncell is part of the global Axiata Group; however, it must ensure that strategies from the top
management are adapted with local needs for its business environment. The decentralization of
decision-making autonomy for the local leaders can be held as an approach of optimizing
operational flexibility. Using its management right, Axiata Group makes multiple imperative
business decisions, which might not suit Nepal’s regulation appropriately. This is because the
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decentralized authority to local executives allows Ncell to shall and promptly respond to any
market condition changes, regulation responses as well as customer expectations. The company
should form long-term partnerships with regulatory authorities to attain strategic objectives.
However, during the times when the regulatory actions take place, Ncell needs to engage in
consultation policies with the NTA and other related authorities. To do so, the firm should
employ an opportunity to participate in industry forums coupled with the use of partnerships and
current dialogues with policymakers. Ncell can leverage better regulator working relationship
because it will be able to see changes that are likely to happen in the market and formulate
policies that make their compliance work faster.

Boosting Innovation and Competition: Investments in 5G and Digital

Transformation
To sustain the market competition in Nepal, Ncell should continue with the strong investment in
upcoming technologies such as 5G, artificial intelligence (AI), and digital services. This is
necessary for network evolution besides increasing the speed of the networks and the quality of
service offered. Indeed, Ncell must advance and develop 5G because Nepal Telecom has initiated
5G trials which will guarantee business competitiveness. The organisation would benefit from
the faster establishment of strategic partnerships for technology companies with international
operation or government entities. The 5G technology development together with the digital
transformation projects offer the valuable opportunities to enhance the client’s experience. Ncell
should adopt the artificial intelligence to enhance its customer support, apart from cloud
telecommunication and creative mobile applications that will enhance user experiences. Loyalty
programs and value added services combined with affordable ARPU further ensures that
company gets to retain more customers as it evolves to a more competitive environment.

Strengthening Sustainability: CSR Expansion and Eco-Friendly Business

Practices
The expansion of CSR for Ncell can focus these efforts on education along with environmental
management and sustaining and increasing projects and programs in digital literacy. The social
value along with the public confidence will improve due to partnering with schools, universities
and NGOs to distribute free internet and digital knowledge and scholarships (Ncell, 2025).
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Another unique strategy that the company should employ is the installation of solar-powered
telecom towers to curb adverse effects on the environment together with the elimination of
Carbon emissions in the processes that the telecom towers undertake. The two sustainable
business practices which will essentially contribute to the long-term growth include; The
program in e-waste recycling: and Efficiency of data center energy. The development of Ncell as
a brand that adheres to social and environmental responsibility will promote the overall brand
image and the public will have confidence in the fact that the company is socially responsible
and therefore support investors who will make long-term investments to the company.

5. Conclusion
Ncell Axiata Limited is a leading telecommunication service provider company situated in
Nepal; however, the company also faces numerous management issues that are best solved
tactfully. The company’s ethical dilemmas about tax affairs have followed it in terms of
tarnishing its image as well as financial viability. The operation of the company in the global
Axiata group brings some difficulties to the Ncell Axiata Limited to uphold company-wide aims
and objectives along with regional policies and regulations. Competitive rivalry observed in the
Nepalese telecommunication industry forces Ncell to be innovative and invest on 5G network
over the Smart Telecom. Thus, as one of the major and experienced telecom providers, company
has to strengthen both sustainability management and policies in conjunction with CSR
initiatives since such measures call for enhancing sustainable brand image and contribute to
better environmental outcomes.

Ncell has to address these issues since they define some of the key factors for its current business
operation in Nepal. The future of success in the Nepali context could be attributed to Ncell
regarding both the accurate financial reports as well as the improved relationship between
telecommunications and the government along with the more investment in technology and
innovations. The strategies for adopting sustainability in corporate causes together with
environmental sensitive business activities will help in boosting the confidence of the public in
Ncell and also create sustainable image for the firm. In this context, future management of Ncell
in Nepal relies on its capability to reinvent itself on grounds of government/environmental shift
and customer preferences and technology factors developments. With the intended strategic
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moves, Ncell will achieve persistent market leadership and technological advancement for digital
growth to enhance the technological needs of Nepal with a promise of long term sustainability
and revenues.

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