SINAMANGAL, KATHMANDU

Term Paper
On
“ Policies and Regulations
on
Telecommunication in Nepal ”

Submitted By:
Krishna Kumar Shah
MBAe, Sem-V

Submitted To:
Mr. Ananda Raj Khanal
Course Coordinator
 Contents
1. Introduction to Policy Environment for Telecommunication Sector in Nepal ......... 3
2. National Communications Policy 1992 A. D................................................................. 4
3. Telecom Act 1997 and Telecom Regulation 1997......................................................... 5
3.1 Establishment of NTA: ................................................................................................... 5
3.2 Licensing Provision ......................................................................................................... 6
3.3 Formation of RFPDC: .................................................................................................... 6
4. Communication Policy 1999........................................................................................... 7
4.1 Objective .......................................................................................................................... 7
4.2 Classification of Services: ............................................................................................... 8
5. Long term vision for Communication ......................................................................... 10
5.1 Objectives....................................................................................................................... 10
5.2 Policy .............................................................................................................................. 10
5.3 Working policy .............................................................................................................. 11
6. Telecommunications Policy of 2004 ............................................................................ 12
7. Conclusion ..................................................................................................................... 13
References ................................................................................................................................. 15

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 1. Introduction to Policy Environment for Telecommunication Sector in Nepal

Nepal has developed a progressive policy and legal framework for telecommunications. The
first National Communications Policy was adopted in 1992 and updated in 1999 to encourage
private sector participation. A sound Telecommunications Act was passed by Parliament in
1997, establishing the Nepal Telecommunications Authority (NTA) and a Radio Frequency
Policy Determination Committee. The Policy was revised once again in 2004. The policy
formulated in 2004, (http://www.nta.gov.np/articleimages/file/TelecomPolicy_2004.pdf) aims
to remove restrictions on investment and accelerate broad market opening. The Government’s
guiding documents for the sector are uniformly articulated, purposeful and well reasoned. On
paper, Nepal has consistently adopted a “global best practices” approach to sector reform. In
actuality, progress has substantially lagged behind the lofty language of the strategy papers and
market growth has overwhelmingly failed to meet expectations.

Nepal’s telecoms have suffered from recent years of political instability. In the time since the
reforms began, and despite a proper regulatory platform, only one alternative provider has
emerged to the incumbent operator, Nepal Telecom (NDCL). With the absence of meaningful
competition, expansion of basic (and mobile) services has been predictably disappointing.
Rural regions average one line per 1,000 populations while more than 60% of rural districts
have no telecommunication services of any kind. Virtually no investment has been in rural
areas since 2000. Kathmandu, by contrast, has a telephone density of about 21%. With a
waiting list estimated to top 290,000 lines, market demand clearly outstrips supply, even with
the economy’s low purchasing power.
Given the Government’s recognition of telecommunication as a prerequisite for development,
the clear sector roadmap defined in policy and obvious consumer demand, international
investors invariably ask: why has Nepal’s telecoms market not taken off?
The first and most obvious answer is that the Government has not had the political constancy
required to implement its own meticulously crafted reform program. Over the past 13 years,
Nepal has had 13 governments. Since the dissolution of Parliament in May 2002 and the
sacking of the Prime Minister in October of that year, the Government has been unable to steer
a steady course for the sector. In the absence of apparent executive direction, efforts to
liberalize the economy and introduce competition have largely failed to materialize.
The enthusiastic support on paper for reform has been no match for the traditional inertia of the
established state institution. Within Nepali telecom circles, the sentiment to protect NDCL runs
deep. It has been treated like a national treasure. The chairman of NDCL is the Permanent
Secretary for Ministry of Communications. The chief of NDCL routinely assumes the position
of the nominally independent NTA. To date the checks and balances have been weak between
the Government, the incumbent and new market entrants. As a result, competitors have had a
rough run.
In 2000 a tender stipulated by the 1999 Policy was held for a first GSM service operator to
compete with NDCL. An award was issued to Modi Group, the Indian mobile service provider,
and a local investor, Khetan Group. Despite auspicious beginnings, the venture quickly became
encumbered by a series of barriers. First, a formal protest to the contract was issued by the
NDCL trade union. While NDCL was not directly complicit, a petition from the labour union
had special resonance in a society combating a strong Maoist opposition. The consortium
overcame this impasse only to be instructed to apply for a radio spectrum license, a process
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that introduced a nine-month delay. Once the license and spectrum issues were agreed, the
Government demanded a bank guarantee for bid insurance – a condition that was not a part of
the initial tender. The issue was resolved after months of negotiation when a local bank stepped
in. Finally, after all the legal, labour, regulatory, spectrum and financial impediments failed to
deter the entrepreneurs, the Government threatened criminal inquiry and invoked an
investigation by the Commission for Investigating Abuse of Authority. The group was cleared
of charges. In the end, after four years of wrangling, no investment has been made and the
company has failed to initiate operations. In the mean time, NDCL’s operations have
prospered.

2. National Communications Policy 1992 A. D.

National Communication Policy appeared in 1992. A 30-page documents for the first time,
recognises importance of regular audiences survey and recommends them but the policy for
advertising was also limited to the government organisation only. National Communication
Policy-1992 enclosed policies relating to advertisement. The Communication Policy has
clearly stated to provide government advertisements to private newspapers on the ground of its
regularity and classification. Also manage the environment to provide the government and
semi-government industry’s advertisement to the private newspapers those classified. This
provision would also work for monthly, bi-monthly, tri-monthly and the literary newspapers.
This policy opened door for private sector including NRN who can invest their capital in ICT
industries for the development of national income. This policy recognizing the need to make
available all kinds of information to the people emphasizes the development and expansion of
telecommunications services as a very essential service in order to foster it as an infrastructure
of national development, and encourage participation of private sector investment. With the
implementation of National Communication Policy in 1992, the concept of security printing
developed. Printing press of the Department of Printing has been made autonomous to provide
professional and quality services for which construction of building has been completed and
the printing has begun.
The Policy-1992 for Radio Nepal and Nepal Television discourages the advertisement of
alcohol and tobacco. Likewise, for the quota of advertisement and newsprint the press council
would work for auditing and circulation until the associated publisher, advertisers and the
advertising agency are not involved in classifying the published newspapers.
This policy was basically for development of the entire communication system rather than
concentrating in Telecommunication sector. The Telecommunication development was in the
evolving phase during this period. Thus more emphasis was not given to the
Telecommunication sector in this policy. Only liberalization of sector was given a priority.

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 3. Telecom Act 1997 and Telecom Regulation 1997

Telecommunication Act was enacted in 1962. Telecommunication Act, 1962 was replaced by
1997 which has opened telecommunications services for the private sector participation. The
Act established a regulatory body, the Nepal Telecommunications Authority (NTA), as an
autonomous and corporate body, with a mission of “managing and regularising the
Telecommunications Service and making it reliable and easily available to the public”. After
the establishment of NTA, different value added telecommunications services have been
liberalized and opened for private participation.

3.1 Establishment of NTA:

Authority to be an Autonomous and Corporate Body:

i. The Authority shall be an autonomous and corporate body with perpetual succession.
ii. The Authority shall have its own seal to carry out its functions.
iii. The Authority may, like an individual, acquire, use or otherwise manage movable and
immovable property.
iv. The Authority may, like an individual, sue and be sued by its name.

Functions and Duties of the Authority:

i. To provide suggestions to Government of Nepal on the policy, plan and programme to
be adopted by Government for the development of the Telecommunications Service.
ii. To make the Telecommunications Service reliable and easily available to the public.
iii. To make necessary arrangement to avail basic Telecommunications Service and
facilities in all rural and urban areas throughout the kingdom of Nepal.
iv. To involve the national and foreign private sector investors in the operation of the
Telecommunications Service.
v. To make arrangement for the coordination and healthy competition among the persons
providing Telecommunications Service and facilities, so as to provide such service and
facilities to all public in general.
vi. To prescribe, fix and approve the standard and quality standard of the plant and
equipment relating to the Telecommunications and the Telecommunications Service.
vii. To regularise and systematize Telecommunications Service
viii. To grant Licence to operate the Telecommunications service.
ix. To approve and regularise the fees to be collected by a person having obtained Licence
for providing the Telecommunications Service.
x. To perform the functions relating to the frequency in accordance with the policy
determined by the Radio Frequency Policy Determination Committee.
xi. To carry out or cause to carry out the research about the development and use of new
technology in the field of Telecommunications.
xii. To cause to develop the skilled manpower for the Telecommunications Sector.
xiii. To develop and extend or cause to develop and extended the Telecommunications
Service in such a way that it protects the rights and interests of the consumers.
xiv. To develop or cause to develops Nepal as an International Transit for
Telecommunications.
xv. To carry out necessary and appropriate functions for the development and promotion of
the Telecommunications Service.

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3.2 Licensing Provision

The 1997 Act established a licensing regime, which has been actively pursued by the regulator.
After the commencement of this Act, no one may operate the Telecommunications Service
without obtaining a Licence. Areas that were liberalised in the Act include the Internet Service
Provider (ISP) market, radio paging and data communications via Very-Small Aperture
Terminals (VSAT). There is no limitation on the number of licences that can be issued in these
areas. In addition, the Cable TV market, which is regulated under the 1991 National
Broadcasting Act by the MoIC, is also liberalised. In Chapter 5 of the Act, the Licensing
procedure of the telecommunication services is described. Application for the License,
Provision of the License, Period of License and its renewal, Sale or transfer of License,
Cancellation of the License has been described in this chapter of the Act. NTA would provide
License specifying the areas to develop, expand, and operate Telecommunication services and
allowance of the Interconnection and use of telecommunication systems.

3.3 Formation of RFPDC:

Apart from NTA, this ACT also formed a Radio Frequency Policy Determination Committee
for the purpose of determining the policy relating to the radio frequencies and allocation
comprising the chairman and the member as follows: -
a. Minister or Minister of State, Information and Communications - Chairman
b. Secretary, Ministry of Home - Member
c. Secretary, Ministry of Defence - Member
d. Secretary, Ministry of Tourism and Civil Aviation - Member
e. Secretary, Ministry of Information and Communications - Member
f. Chairman, Nepal Telecommunications Authority - Member
g. At least gazetted first class or expert Officer - Member Secretary

The functions, duties and powers of the committee shall be as follows: -

a. To determine the policy relating to radio frequency.
b. To fix and allocate the radio frequency for different services.
c. To determine the pricing policy of radio frequency.
d. To determine the policy for international and multipurpose coordination of radio
frequency.

This Act laid the basis for the Telecom Regulation 1997. Depending upon the Telecom Act,
the Telecom regulation was formulated to be implemented by the NTA and hence the
Government of Nepal. The Regulation defined all the clauses of the Act in policy format.

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 4. Communication Policy 1999

In the context that various important infra-structures for economic and social development
have been set up and implemented after the restoration of democracy in the country, the need
of an appropriate and qualitative (standard) telecommunications services have been felt.
National Communications Policy 1992 has already been implemented to adopt the policy of
liberalization in telecommunications sector for the fulfilment of this need and to develop the
telecommunications service as a pre-requisite for development by having the private sector
participated in the business of development and expansion of this sector. The
Telecommunications Act 1997 has already been enforced for the purpose of having the service
operated in a fair competitive atmosphere by the telecommunications service operators and
service providers in order to speed up the process of development of telecommunications
services in Nepal in line with the said Policy.

4.1 Objective

The main objective of Telecommunications Policy 1999 is to make the various types of high
standard and reliable telecommunications services easily available to all areas of the Nation at
a reasonable service charge. This is to be achieved in a fair competitive atmosphere with the
participation of private sector by implementing the policy liberalization in the
telecommunications sector. The policy also has the objective to develop telecommunications as
a main pre-requisite for national development. The policy recognised that telecommunications
service is an essential pre-requisite for the information oriented technology and its proper
applications and the telecommunications service has widely been using also in education and
other leading social and cultural sectors of the country.

The National Telecommunications Policy has been formulated in line with the following
matters in order to develop and expand the telecommunications services in a fair competitive
atmosphere with the involvement of the private sector.
 To make available the telephone service as per the demand and to provide new and
recent telecommunications services in accordance with the demand of the market in
addition to the basic telephone service.
 To make arrangements for making the basic telecommunications services
universally accessible to those, who do not have separate telephone of their own.
 To make available the basic telephone services in remote and inaccessible rural
areas also of the Nation.
 To develop the telecommunications as a main pre-requisite of national development
with maintaining the regional balance as well.
 To involve the private sector as well in the development and operation of
telecommunications services in accordance with the liberalization concept adopted
by GON.
 To have also the private sector participation in order to enable Nepal
Telecommunications Corporation, state owned incumbent operator, to function in a
competitive environment by changing the current composition of the corporation.
 To provide quick, fast and qualitative (standard) telecommunications services at a
reasonable price by creating as environment of fair competition among the service
providers.
 To create proper environment in order to interconnect the network of the various
service operators among each other.
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  To give priority to utilize the means and resources available within the country in
developing and expanding the service and to take also the version of producing
skilled manpower, mobilizing people’s participation and cost recovery.

4.2 Classification of Services:

Telecommunications Policy, 1999 has classified the telecommunications services into the
following three categories:
1. Basic Telephone Service
2. Mobile telephone Service
3. Other Value Added Services of Telecommunications

Basic Telephone Service:

In the policy it is stated that:

1. Provision of license will be made to one extra service provider in addition to
Nepal Telecommunications Corporation with the authorization to operate
throughout Nepal local telephone service based for the time being on Wireless
in Local Loop (WLL) technology from among the basic telephone service
through the process of bidding;
2. The operators of the telecommunications services based on the WLL may
provide the international telecommunications to its customers through its own
network from 2001AD, and may provide the circuit from its network to other
service providers or service users on lease;
3. The provision of full competition for operating all telecommunications
services including the domestic and international telecommunications services
will be made by 2004 AD.

So as to implement the government’s policy, last year the NTA called a global tender
among the private investors to provide Local Telephone Service based on the WLL
technology. Two companies had participated in the tender and United Telecom
Limited, the joint venture company with participants TCIL, MTNL and BSNL from
India, was selected for the License. UTL has started its operation since then and
expanded its network to mobility as well.

Mobile Telephone Service:

In the policy it is stated that:

1. Two licenses will be granted through the process of bidding in order to
operate the service by adopting GSM technology.
2. Among the two licenses to be granted in such a manner, one license will be
granted to a bidder selected through the process of bidding. Nepal
Telecommunications Corporation will be asked to operate the service under
the same terms of license.
In order to implement the government’s policy the NTA called a global tender among
the private investors to provide Cellular Mobile Service based on GSM technology last
year. A total of eight companies had participated in the tender. One operator has been
selected through competitive bidding process among the participants. Spice Nepal Pvt.
Ltd. got the License and started its operation since then.

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Other Value Added Services of Telecommunications:
Government has already issued gazette notifications so that NTA can grant licenses at
any time for the following telecommunications services:
 Internet including e-mail  Video text service
service  Pay Phone service
 E-mail service  Pre-paid calling Card service
 Voice mail service  Local data Communication service
 Fax mail service  Radio paging service
 VSAT  Trunk Mobile service
1. VSAT network provider  Video Conferencing service
2. VSAT user  Audio Conferencing
 GMPCS

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 5. Long term vision for Communication

Under the Long-term Policy of Information and Communication-2001, the government

introduced Long-term Policy for Advertising. This is first nationwide advertising policy
introduced by the HMG. The Long-term Policy for Advertising is divided into two sections.
The first part deals with the aim and objective and second deals with policy and programmes.
The aim and objective of the policy-2001 is to develop advertising business as national
industry, and to manage and enhance national economy. It also aims for impartial and free
press and identify advertising as the main source of revenue. Likewise, the final aim is to
make advertisement affective through inspection of use of language, style and cultural aspect.

The Policy and programme have altogether 28 points; the proposal of AAAN has also been
accepted. The policy and programmes deals with clear specification of the right and
responsibilities of all parties of an advertisement and draw up a national advertisement code
of conduct that is in line with the constitutional provisions and national values and ethics. To
introduce the policy recognising advertising agency be associated directly or indirectly with
advertising association and also recognise advertising business as service industry entitled to
all the facilities. The entry of multinational advertising agencies will have to provide 20 per
cent domestic share compulsory and use of Nepali labour and creation for its development.

5.1 Objectives

i. To have development and expansion of telecommunications means competitively in

such manner as to maintain regional balance.
ii. To extend local telecommunications service and reliable trunk service in important
places in the Kingdom of Nepal in a manner also to contribute to economic
development, and extend the telecommunications service to the rural level with a goal
of 15 telephone lines per hundred people by the end of the Twelfth Plan.
iii. To develop this sector as an infrastructure of the overall social and economic
development by emphasizing the research, use and expansion of the information
communications technology.

5.2 Policy

i. To develop the telecommunications sector in a competitive environment by expanding

the existing services, starting new services and increasing quality standards of
services and to get the private sector involved in expanding the telecommunications
service in the rural areas, as well.
ii. To make frequency management effective.
iii. To pursue appropriate strategy to attract capital required for development of the
telecommunications sector.
iv. To keep on making timely and strengthening the regulatory body in order to enhance
the private sector investment in competitive development of the telecommunications
service.
v. To expand the telecommunications service in a manner to have 15 lines of telephone
per hundred people by the end of the Twelfth Plan.
vi. To encourage the use of modern technology to diversify and upgrade standards of the
telecommunications service and do or cause to be done, research and development
acts in order to gradually have required means and resources in the country and
reduce importation and increase reliability of the service.
vii. To render assistance for the development of sectors such as agriculture, tourism,
health, industry, commerce, postal service, information technology by building
national information infrastructure, taking into account of possibility of faster
information flow that can be achieved from various means of communication in the
social and economic sectors of the country.
viii. To generate and develop capable manpower.
ix. If Nepal becomes a member of the World Trade Organization, to have according
management in view of competition that may occur in the telecommunications sector.
x. To use appropriate telecommunications technology taking into consideration of the
country's geographical remoteness.

5.3 Working policy

i. To develop and operate the telecommunications sector in a competitive environment

by expanding the existing services, starting new services and increasing quality
standards of services.
ii. In the context where the telecommunications systems requiring frequency have started
being used extensively and such systems are being developed speedily, to consolidate
the organizational structure of frequency management and make it effective.
iii. To review and update the national frequency plan.
iv. To coordinate and implement acts on the uses of orbital slot to be used by Nepal at the
international level.
v. To pursue appropriate strategy for the competitive development of the
telecommunications sector and attract the private sector capital investment.
vi. To expand the capacity of NTA in knowledge and use of new technologies found out
in the world and regulation of telecommunications regulation.
vii. To provide services in those villages development committees of the Nation deprived
of the telecommunications service so far and extend the same up to wards.
viii. To establish an Internet Node at the district headquarters in participation of the private
sector in such a manner as to assist acts such as tele-medicine, distance learning, tele-
processing and e-commerce as well as develop infrastructures of telecommunications.
ix. To establish, or cause to be established, tele-centers throughout the Nation for the
flow of information required for the overall development of the country.
x. To develop and promote programs on the use of modern technologies such as optical
fiber, wireless and satellite communications for the development of overall
infrastructures.
xi. To do, or cause to be done, research and development acts in order to encourage the
use of modern technology in the telecommunications sector and upgrade standards of
the existing service.
xii. To prepare national information infrastructure to render assistance for the
development of agriculture, tourism, health, industry, commerce, postal service,
information technology sector etc. taking into account of convergence of
broadcasting, telecommunications and computer. To build national information
superhighway and north south information highway and also to link Nepal with broad
band information network with other parts of the world.
xiii. To encourage the private sector, as well, to prepare capable manpower required for
the telecommunications sector.
xiv. To so improve the organizational structure of Nepal Telecommunications Authority
that it can act in a competitive environment.
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 6. Telecommunications Policy of 2004

The new draft Policy, crafted with international assistance, defines a liberal regulatory
environment based on open licensing; widespread competition; specific service obligations
for licensed operators; a proposed regime for non-compliance; an explicit reference to WTO
interconnection obligations; and a schedule to corporatize and privatize NDCL. It is a how-to
manual for aggressively liberalizing the sector.
Selected recommendations specified in the new Policy include the following:
• Liberalize the telecommunications sector fully so that the telecommunications sector
is open to new operators without restrictions, except where radio spectrum limits the
number of operators.
• Introduce a multi-service and multi-operator environment so that any operator can
offer any service and each service can be obtained from a number of operators. The
only restrictions shall pertain to services that require access to radio spectrum.
Operators are allowed to resell services.
• Introduce an Open Licensing regime, in which new licensing methods are applied to
open the sector to new operators in a transparent manner that creates a level playing
field.
• Commercialize and privatize the incumbent, NDCL and reduce the Government’s
ownership. NDCL will be converted to a company, restructured to meet increasing
competition, and the Government is expected to eventually sell down its position.
• Promote private sector participation in operation of telecommunications. The
Government Ministry of Information and Communications and NTA are directed to
keep the private sector informed of sector reform development and licensing
opportunities in a transparent manner.
• Introduce new mobile operators through tenders on the basis of maximum rural
coverage which will define commercial coverage without subsidies. Two new mobile
licenses were awarded on early 2005. The World Bank has agreed to provide a
technical assistance grant to draft the tender documents. Solicitation and selection of
consultants finished in 2004.
• The Government will purchase services from several operators based on price and
quality assessments to demonstrate its commitment to market liberalization, rather
than obtain services from the incumbent.

Other key strategic provisions not explicitly stated in the Policy include:

• Radio spectrum will be awarded through allocation, not auction. The Government is
mindful of avoiding the pitfalls other countries have pursued with crippling frequency
charges. It prefers to ensure that scarce investment capital is reinvested directly into
the sector.
• Spectrum fees, in the form of a revenue share, are slated to be modest and intended
only to cover the operating costs of the regulator, NTA.
• Nepal is pursuing a technology neutral regulatory regime. No restrictions will be
placed on mobility services in the 800/1800 MHz bands, that is, there will be no
requirement to restrict the potential of CDMA technology based on artificial
constraints.

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 7. Conclusion

The Telecommunications Act, 2053 (1997), Telecommunications Regulations, 2054

(1997), Telecommunications Policy 1999 and Telecommunication Policy 2004 are the
main Act/Regulations/Policies determining the legal & policy framework of
telecommunications in Nepal.

Corollary to this, the Communications Corporation Act, 1972 clarified the situation
concerning the establishment of corporation for the operation of telecommunications
services. The law further mandates that the Corporation shall be established permanently,
whereby the Government has the right to change its name, office or objectives and
functions if necessary. These legal provisions imply that the telecommunication is a
government undertaking. However, to this philosophy after the restoration of multi-party
democracy in the country in 1990, the policy undertakings of the government towards
economic liberalisation and privatisation have taken a different hue.

After the restoration of the multi-party democracy in 1990, Government of Nepal is

adopting the liberalisation policy. In pursuant to the liberalisation policy, Government has
decided to expedite the development of telecommunication services through private
investment gradually.

Liberalisation has been a global trend that has a direct bearing in the telecommunications
sector as well. Naturally, it is quite obvious that the new incoming operators are endowed
with most advanced managerial as well as technological expertise. The traditional
operators on the other hand are adamant to the changes. These operators do not have the
experience of working in a competitive environment. If competition alone were taken for
granted existence of the traditional operators is a big challenge.

The new entrants might have some sort of psychological fear that they have to compete
with the well-established and well-equipped traditional operator. These entrants might be
reluctant in entering to a new field. Thus on the part of the new operator there is a fear of
size, expertise, stability and market penetration originally held by the traditional operator.
Trade unions might vehemently resist the new entrants. There is always a fear on the part
of the employees working in the traditional operator that they might lose their job. The
possible reason for resistance is that the traditional operator might retrench the employees
when there is competition.

Once the telecommunications sector is opened for private participation the donor agencies
might feel reluctant investing in basic services. The agencies may feel that private sectors
can make the investment, and it is none of our business to make investments. But the
dealing with the private sector is such that they will be interested in making investments
only in the profitable areas. Still it is the responsibility of the government to extend its
services to the non-profitable areas as well. For that matter in order to balance the
provision of universal service obligation we need resources. Thus scepticism on the part
of donor agencies is also a challenge for us.

In a monopoly situation hardly cost-based tariff exists. Owing to various reasons, the
government usually controls the tariff setting practices. Once there are private operators,
the tariff would invariably be based on cost. In this situation, there is psychological fear
13
both at the political and people level that there will be a rise in price once there are private
operators.

We have of the opinion that international telecommunications depends on countries

sharing their facilities with the rest of the world. To this end, standardisation of facilities
and technologies worldwide is essential. In the days to come, the international
telecommunication operators, manufactures and/or their affiliates need to have a different
perspective when we will be shifting from the condition of monopoly operator to that of
multi-operators.

It is rather obvious that technological explosion in the field of telecommunications has

created opportunities for independent private operators to provide a variety of services.
This demands a review of the sector's structure. The review is especially desirable in
redefining the role of the government, Nepal Telecom & private companies.

Technological innovations are striking at a higher pace in telecommunications.

Technologies found appropriate as of today may be obsolete within say five years time.
Developing countries can hardly afford necessary resources to keep themselves updated
with the ever-changing technologies. Globalisation and the multi-media revolution are
creating new service needs, as people increasingly demand the facilities to communicate
freely anywhere, at any time with anyone using a variety of media. A number of hurdles
need to be surmounted before we adapt to a new technology.

There seems to have been a debate on the prioritisation of the choice of technology
between the developed and the developing countries. It is of course quite natural for the
developing societies to head towards information super-highway. Whereas for the
developing countries, especially the least developed ones, availing of basic telephone
service is a problem. Thus there is extreme difference over the priority of the
telecommunications sector. We think the developed countries should give their attention
towards capability building of the developing countries in their efforts at augmenting the
modernisation of telecommunications sector.

Thus considering the above challenges, Nepal Government and NTA has huge
responsibility in improving the policies, regulation in Telecom Sector in Nepal. What
remains to be seen is how assertively the Government will be implementing the plan, or
whether continued political instability thwarts effective execution.

14
References
1. www.nta.gov.np
2. www.moic.gov.np
3. www.ntc.net.np
4. ICT Status Report: Nepal, Bhola Man Singh Basnet, Chief of
CPDD, NARC.
5. E-Government Initiatives in Nepal: Challenges and Opportunities,
Dr. Madan P. Pariyar, Ex-Member Secretary, HLCIT.
6. National Experiences On GATS/ WTO And Negotiation In
Telecommunication Nepalese Perspective, R.C Adhikari, Under
Secretary, Government Of Nepal.
7. Asian Forum on Information and Communication Technology
Policies and e-Strategies (www.apdip.net/asian-forum), Nepal-
Country Report
8. www.adb.org
9. www.itu.int
10.www.un.org.np

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