Four companies occupy more than half of total internet service market share in Nepal

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Four companies occupy more than half of total internet service market share in Nepal

April 10:
Four out of a total 40 internet service providers (ISPs) have captured more than a half of the  internet service market share in Nepal.
According to the latest Management Information System report released by Nepal Telecommunications Authority, four ISP—WorldLink Communications Ltd, Subisu Cablenet Pvt. Ltd, Vianet Communications Pvt. Ltd and Classic Tech—occupy 63% share in the broadband service market that includes 1.4 million internet service subscribers.

WorldLink Communications Ltd has the highest internet subscriptions with 451,766 subscribers. This company alone occupies 32.34% market share alone, shows the MIS Report of Magh (between mid January and mid February).  
This is followed by Subisu Cablenet Pvt. Ltd which has 184,529 subscribers to hold 13.17% of the internet market share.

With 9.45 percent market share and 132,442 subscribers, Vianet Communications Pvt. Ltd stands at third in the list of top internet service providers. Classic Tech occupies 9.11% market share with 127,761 subscribers.
According to the MIS report, fixed broadband penetration has reached 22.62 percent of the total population compared to 61.47 percent of mobile broadband penetration.  
The low penetration of fixed broadband is attributed to the concentration of ISPs in urban areas.
Fixed-broadband refers to high speed internet service delivery to a fixed location using wire or without use of wires.

“Higher cost of expansions, higher taxes has dissuaded internet service providers to take service to rural areas. Due to geographical complexities and lack of basic infrastructure, ISPs alone can’t extend service to rural areas so we have been urging with the regulatory body for the establishment of Infrastructure Company,” Sudhir Parajuli, President of Internet Service Providers’ Association of Nepal (ISPAN), told New Business Age.

Broadband Policy 2071 has a target to connect all local units with wired/wireless broadband service by 2020.

Though the government has missed its target, officials say that they have expedited works to bring all local units under broadband network coverage.

To facilitate broadband network expansion, Nepal Telecommunication Authority (NTA) has taken an initiative to build broadband network infrastructures utilizing Rural Telecommunication Development Fund (RTDF).

Nepal Doorsanchar Company Ltd, the government-owned telecommunication company popularly known as Nepal Telecom, has implemented 18 broadband packages to connect 702 local units, 5,933 ward offices, 5,225 secondary schools and 4,122 health institutions of the country.

According to the NTA, Nepal Telecom has achieved 78.35 of progress so far, providing connections to 550 local units, 4,474 ward offices, 3,792 secondary schools and 3,153 health institutions.

Similarly, NTA has also been implementing three packages to lay optical fiber along Mid Hill Highway. NTA officials say that only 35.19 percent of works related to optical fiber has been completed.  

 

 

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