INTRODUCTION

Company’s profile

NEPAL TELECOM was registered on 2060-10-22 under Company Act, 2053. Then Nepal

Telecommunications Corporation (NTC) was dissolved and all assets and liabilities were transferred to

Nepal Telecom effective from 2061-01-01 (i.e. 13th April 2004). The company with its long history is on

the way of customer service and nation building.

In Nepal, operating any form of telecommunication service dates back to 94 years in B.S. 1970. But

formally telecom service was provided mainly after the establishment of MOHAN AKASHVANI in B.S.

2005.Later as per the plan formulated in First National Five year plan (2012-2017); Telecommunication

Department was established in B.S.2016. To modernise the telecommunications services and to expand

the services, during third five-year plan (2023-2028), Telecommunication Department was converted

into Telecommunications Development Board in B.S.2026. After the enactment of Communications

Corporation Act 2028, it was formally established as fully owned Government Corporation called Nepal

Telecommunications Corporation in B.S. 2032 for the purpose of providing telecommunications services

to Nepalese People. After serving the nation for 29 years with great pride and a sense of

accomplishment, Nepal Telecommunication Corporation was transformed into Nepal Doorsanchar

Company Limited from Baisakh 1, 2061. Nepal Doorsanchar Company Limited is a company registered

under the companies Act 2053. However the company is known to the general public by the brand name

Nepal Telecom as registered trademark. Nepal Telecom has always put its endeavours in providing its

valued customers a quality service since its inception. To achieve this goal, technologies best meeting

the interest of its customers has always been selected. The nationwide reach of the organisation, from

urban areas to the economically non- viable most remote locations, is the result of all these efforts that

makes this organisation different from others. Definitely Nepal Telecom’s widespread reach will assist in

the socio-economic development of the urban as well as rural areas, as telecommunications is one of

the most important infrastructures required for development. Accordingly in the era of globalisation, it

is felt that milestones and achievements of the past are not adequate enough to catch up with the

global trend in the development of telecommunication sector and the growth of telecommunication

services in the country will be guided by Technology, Declining equipment prices, market growth due to

increase in standard of life and finally by healthy competition. Converting NT from government owned

Monopoly Company to private owned, business oriented, customer focused company in a competitive

environment, Nepal Telecom invites its all-probable shareholders in the sacred work of nation building.

Mission

“Nepal Telecom, as a progressive, customer spirited and consumer responsive entity, is committed to

provide nation-wide reliable telecommunication services to serve as an impetus to the social, political

and economic development of the country.”

Vision

“NT vision is to remain a market leader in information and technology sector in the country while also

extending reliable and cost effective services to all.”

Goal

“NT goal is to provide cost effective telecommunication services to every nook and corner of the

country.”

Product and services

Nepal Telecom is the key market player as it holds about 60.30% of totals no. mobile phones and 91 % of

total no of Fixed Telephones. (NTC-MIS-2067, Aswin). It has 221 Public Switch Telephone Network

(PSTN) exchanges in 72 districts and has covered all 2915 VDC with Basic Telephone service. It offers

various products like Basic telephone, Mobile telephone, Internet, ISDN,PSTN, Leased line, CDMA

phone, sky data card, etc. It has starred SIP telephony service for the Nepalese lying beyond the country

to call Nepal from round the world in its own tariff through internet.

Objective of the Study:

Objectives of the study are guidelines by which the study can be conducted in a systematic

manner. The main objective is to assess the strengths and weakness of Nepal Telecom. The

specific objectives are:

1. To analyze the contribution of Nepal Telecom in total revenue of government of Nepal as a largest

tax payer of a nation.

2. To examine financial position of the company.

Research methodology

The first step in preparation of this report is to design the framework of the research. The task begins

with the collection of necessary data and information concerning the study. The data and information

collected has been studied carefully and presented them systematically and get them analyzed so as to

meet the objective of the report. All data provided has been thoroughly studied and then search design

was planned.

ANALYSIS AND INTERPRETATION

Sales and Services

The main services provided by the communication companies categorised and described as follows:

PSTN

1Public switch telephone network (PSTN): PSTN is a wired telephony service where a wire in the field of

Telecommunications, Nepal Telecom has been the trusted partner of the people of Nepal since 2032. In

order to make life of a Nepali easier, Nepal Telecom makes continuous effort to introduce the latest

technology of communications. As always, Nepal Telecom is devoted towards our customer satisfaction

and national development with all communicational prospect and technologies.

2 ADSL (Asymmetric direct subscriber line): It is the broad band internet service provided by Nepal

telecom where a single PSTN line is capable of providing the internet and voice data at a time.

3 Dial-Up: Dial-Up is the narrow band internet service where a modem is to be connected to the

computer. Laptop computer is unable of using dial-up connection. Using dial-up only one task can be

done.

GSM

1 3G Service (WCDMA Service):To fulfill the ever growing demands and to browse and access the web

pages like video based programs (Live TV browsing) NT installed WCDMA based 3G system which offers

384 kbps of downloading and 64kbps of uploading data speed. This 3G 1X (Third Generation Technology)

allows the subscribers to have the instant data transfer/connectivity with high speeds up. This

technology enables easier/smooth migration to other higher EVDO/EVDV systems (i.e. data only and /or

data with voice systems).

2 GPRS (General packet radio service): It is the mobile internet service provided by NTC and is most

famous amongst the users. It is the cheapest internet charge amongst the service providers. The charge

costs 15paisa per 100kb data transfer.

3 Post-paid and Pre-Paid service: This is the service where a GSM user can switch into a prepaid and

postpaid tariff.

4 WiMAX service: Nepal Telecom (NT) launched the 4G WiMAX IEEE 802.16e service first time in Nepal.

This service is available throughout the country.

WiMAX enables broadband wireless anytime; anywhere using any WiMAX enabled devices, whether it is

a laptop, desktop modem, digital phone or even a game device. Mobile WiMAX creates a seamless

broadband environment at home, in the office and on the move.

CDMA Service

1 CDMA phone: It is the service provided by NTC where the priority is given to the remote costumers.

The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that

operates in the 800MHz band and 1.9GHz PCS band. CDMA phones are noted for their call quality

2 Sky Data Card: It is the volume based internet service. It is focused for the researchers and visitors

exploring new places and connecting from there.

3 SIP PPP

It is the internet phone provided by the organization where a costumer around the globe can log in the

website and can download the software and can call Nepal as per the tariff. It requires broadband

internet.

Competitors analysis

1 Spice Nepal private limited

Popularly known as “Ncell”, Spice Nepal Private Limited is the first private GSM mobile operator in

Nepal. The company was established in 2004 and commercially launched on 17th September 2005. Ncell

is tied up with many different international Operators of more than 31 countries adding up to 74

operators around the world.

2 United telecom limited

United Telecom Limited (UTL) is a consortium of 4 companies, who have come together in a joint

venture to explore various telecom opportunities in Nepal. UTL had participated in the tender floated by

NTA for Basic Services Based on WLL Technology for the then Kingdom of Nepal. After going through all

NTA requirements, UTL was awarded the Letter of Intent by NTA to provide WLL based services,

International Long Distance, Domestic Long Distance and Lease Lines Services.

SWOT ANALYSIS OF NEPAL TELECOM

STRENGTH

Economies of scale: It is easier to create economies of scale thereby increasing return on investment.

Nepal Telecom market especially Kathmandu is a high-density area, which means more population per

tower. This means lower capital expenditure cost.

Active management team: consistent profit over a long period of time.

Manipulate price: NTC has loyal customer base. Even though the comparative prices are higher for its

services, customer are ready to pay for it.

Strong brand: People have trust and are loyal towards the company. It will not have any problem in

introducing its products and technologies in the new market.

Sustainable business modelling: Ability to sustain itself even at worst situation with the profit it has

made over a long period of time.

Weaknesses

Low signal strength: Large number of call drops and low quality of connection

Late adoption of new technology: Nepal is probably one of the last countries to adopt new technology.

Example3g technology, some estimate suggests that nearly 133countries across the world already had

3G technology and mobile services in one form or the other.

High overhead cost: NTC is compiled with large number of staffs. NTC is facing hard time to recruit and

assign the employees in right place at the in right time.

Low quality customer care services : NT often takes days to cater customer and their needs. Branch

offices do not give priority to maintenance and customers.

Opportunities

Technological advancement: The technology is getting more sophisticated and advanced. The telecom

firms can use such technology in their operation to improve the overall performance and customer

satisfaction. This provides the firm a competitive advantage in the market.

Expansion of territory: Still huge number of people are there who are far from any or some of the

telecommunication services.

Creation of new business opportunities- Development of telecom industry can result to creation of new

business opportunities in other sectors such as hydro power, manpower, import, export etc.

Threats

Competition: Private telecom company entering the industry with new and advance technologies

Shrinking economy: Due to unhealthy and shrinking economic condition, new telecom companies are

notable to enter and the ones who are already established are not able to expand.

Increasing rules and regulations: Due to the frequent change in the government and rules and

regulations, telecom industry is not able to take risk, explore new technology and market.

Health related problems: According to studies, there are also many health related diseases like cancer

which is caused due to the excessive use of mobile phones.

Conclusion:

Nepal Telecom, a leading company in the telecommunication sector working restlessly for decades has

been providing world class services in Nepal throughout the country covering all the 75 districts and

covering all the VDC’s. It has been providing best services regarding telephony and internet access to the

willing customers. It has completed successful seven years of privatisation. The organisation is working

for the social service and has been continuing the joint venture with the traffic police and working for

the awareness in the road accidents and helping the needy during the natural calamities. It is providing

services as telephony (GSM, CDMA, PSTN, SIP PPP) and internet as (Dial-up, ADSL,EVDO,GPRS) other

entertaining services as CRBT and free ten web sms provided. It covers about 4.5% of the national

revenue and is playing major role in the infrastructure development by revenue. It has been recognising

itself as the largest tax payer to the government and has been leading the nation by revenue.

Being a service provider it is facing a lot of challenges. The monopoly market has no longer existed

between the organisations. The competitors are giving a heavy challenge to them; the competitors

mainly Spice Nepal working under the management of Telaia Sonera, a famous European multinational

company, United telecom (UTL), Smart telecom and Nepal Satellite company limited are too involved in

the race. Beyond these services it has been implementing new technologies for fulfilling the desire of

the customers.

As a conclusion the services provided to the customers are satisfactory till now but a lot of improvement

and a regular cope-up is to be made to hold the existing customers and to attract new customers from

the competitive market as well.

Recommendations

1. Improvement in the managerial environment: managerial environment includes the circulation

of the internal commands, decisions, it is very important to cope up with the environment.

2. Improvement in the customer care: any organisation, usually the service based should always

give first priority to the customers. Holding the existing customer is more important than

planning for inviting new ones because an unsatisfied customer can stop ten new willing

customers from joining the organisation.

3. Distribution of versatile services: Customers are not properly satisfied themselves on the

provided service as they want a complete and versatile service. So Nepal telecom should always

keep flexibility of the services in majority to hold the existing customers and to attract new

customers from the competitive market.

4. Improvement in the decision making and policy: The decision making and policy formulation is

found to be worst in the organisation. Decisions based on the improvement and establishment

of the new technology has not been properly respected. ‘Right work in the right time’ must

always be kept in the prior consideration.

5. Relations between the trade unions and management: the current cooperation between the

trade unions and management is quite unsatisfactory, if the organisation wants proper survival

in the competitive environment it should always cope-up with the workers unions.

References

www.ntc.net.np

www.google.com

wikepedia.org

NT Smarika 2066