8.34 million Nepalis have access to mobile banking services

The number of mobile banking users has increased by over 4.5 times in the past four years. “Some 8.34 million Nepalis have access to mobile banking services – a fivefold jump compared to four years ago from 1.75 million to 8.34 million – as of mid-October,” according to a report of the central bank.
An expanding number of smartphone users and increased coverage of 3G and 4G services are attributed to the sharp rise in the number of mobile banking and internet banking users, read the report ‘Situation of Access to Finance in Nepal 2019,’ launched today.
Though, Nepal Telecommunications Authority (NTA) records, however, reveal that the number of mobile internet users has jumped to 14.65 million as of April 2019, the internet banking users stand at only 917,344. “Some 168,307 Nepalis use branchless banking. Likewise, there are some 1,530 branchless banking,” according to the report.
The rising popularity of mobile banking – a service provided by banks that allow clients to conduct financial transactions remotely using a smartphone – has also helped increase the number of mobile banking users.  Banks are competing by focusing on new technologies to provide different and easier services to their clients also due to easy access of smartphones and internet connectivity. But there is security concern about mobile banking as well as other banking services that use modern technology. In September, five Chinese nationals were arrested for stealing Rs 12.6 million from several ATMs of the Kathmandu Valley, causing people to be concerned about security features of modern banking services. Due to security concern, the central bank has fixed limit on transaction through mobile or internet. The central bank has set limits of transaction through mobile or Internet. “Only Rs 5,000 can be transacted through mobile banking at one time,” according to the new directives that dictates the weekly and monthly transactions of Rs 10,000 and Rs 50,000, respectively.
But mobile banking has become very convenient for people – especially for household purposes – and getting popular due to its convenient features. Though the expansion of branches – particularly in rural areas – and increasing use of technologies like mobile apps have helped increase the number of users of mobile and internet banking in recent days, the numbers of people using ATM, internet banking, credit card, and debit card have also significantly increased.
“There are 6.7 million people holding ATM cards, up from 4.13 million people six years ago,” the report reads, adding that some 123,146 people have credit cards, up from 57,898 card holders in 2014. “The number of ATM outlets across the country has doubled to 3,316 in the last six years.”
There are 27.8 million deposit accounts and 1.44 million credit accounts of individuals, according to the report. “As of mid-October, banks had enrolled 168,307 customers from their branchless banking outlets in 1,530 locations.”
Despite the rapid progress in the banking sector, some 14 – out of the total 753 – local units in the country still have no bank branches, though central bank has asked the commercial banks to open a branch in each of the 753 local units across the country.
“The bank branches are crowded in Kathmandu as in Province 3, one banking branch serves 2,770 people, whereas in Karnali Province, there is one banking branch for every 4,958 person, and in Sudur Pashchim Province, one banking branch serves 4,409 people,” the report reveals, adding that in Province 5, access to commercial banks has reached all local levels. “Six local units in Sudur Pashchim Province are still have no banks, whereas one local unit each in Province 1 and Gandaki Province lack access to banking and Province 2, Province 3 and Karnali Province have three unbanked local units each.
According to the report, some 60.9 per cent of Nepali population of 29.6 million now has banking access.

Nepal Telecom expands 4G across 32 districts, 50 cities

Nepal Telecom (NT) has rolled out 4G service in 50 cities of 32 districts across the country.
Prime Minister KP Sharma Oli launched – through video conference – Nepal Telecom's nationwide 4G/LTE network in Kathmandu today. Though 4G service has been available for NT users in the Kathmandu Valley and Pokhara, the government-owned telecom company has expanded the high-speed data service to 59 more cities of 36 districts of all seven provinces.
Under the 4G/LTE technology, users not only get high speed internet, but also high quality voice call service, according to the telecom service provider. “As the data speed of the 4G is faster compared to what the NT users are getting from current 3G services, they will be able to watch, download and listen audio/visual contents, play games and surf other Internet contents that require high bandwidth.”
“We have entered the age of 4G from first 2G and then 3G,” the premier said, launching the new service. “We have taken a giant stride to the new era,” he said, urging all to reap the benefit of the new technology provided by the state-owned telecommunication company.
Nepal Telecom had started 4G/LTE service – first in Nepal – in Kathmandu valley and Pokhara on January 1, 2017. However, it had been unable to expand the service outside Kathmandu Valley and Pokhara, as the Commission for the Investigation of Abuse of Authority (CIAA) launched a probe into the 4G equipment procurement process in February last year, suspecting financial irregularities, and other procedural and procurement hurdles. According to the telecom service provider, altogether 800,000 people are using the NT's 4G in the Kathmandu valley and Pokhara. However, Ncell has over three million 4G subscribers, though the company launched the service months later.
Issuing a pree note on the launch of the nationwide 4G/LTE service, the NT said mobile phones and SIM cards should support 4G/LTE. “There is no additional charge associated on activation of 4G/LTE service,” the note reads, adding that in mobile set, users can follow the direction after dialing #444#. “They can know whether they have to change their SIM card to get the new service or continue with the activation process.”
“Consumers, who avail data through NT 4G cellular technology have been offered 400 MB of data at Rs 25 for up to 24 hours upon subscription,” the press note reads.
On the occasion, minister for communications and information technology Gokul Prasad Baskota, said that NT’s 4G expansion is one of government’s biggest achievements.
Likewise, managing director of NT Dilli Adhikari said that the company was though comparatively late to expand the service, the 4G or Long Term Evolution (LTE) will cater to the high-speed internet demand of NT subscribers across 50 major cities.
Adhikari also informed that NT subscribers will have to switch to U-SIM to avail its 4G service and the company has already ensured the availability of U-SIM across places where the 4G service have been launched. “Subscribers of old SIM cards can exchange the new U-SIM free of cost.”
According to Nepal Telecom, over 6.5 million subscribers can benefit from the new 4G expansion.
Nepal Telecom had inked different pacts with China-based ZTE Corporation and China Communication Service International (CCSI) of Hong Kong to develop core network and radio network required for the 4G expansion in the country. ZTE has quoted a price of Rs 1.56 billion to install the core network. Under the plan, radio access networks will be installed in the central and mid-western regions in the first phase, whereas in the second phase, the core network will be installed in the eastern, western and far western regions, connecting all areas into the 4Gs system. “The first and second phases of the network are expected to cost Rs 8.75 billion and Rs 8.39 billion, respectively.”

Number of 4G users soars by 125 per cent

The number of fourth generation (4G) mobile network users has reached 3.6 million within three years of being introduced in the country.
According to Nepal Telecommunications Authority (NTA), the number has increased by 125 per cent compared to last year. The recently published Management Information System (MIS) report of mid-April to mid-May revealed that the number stood at 1.6 million last year. “The 4G network was first introduced in Nepal on January 1, 2017 by Nepal Telecom (NT). Currently, NT, Ncell and Smart Telecom Pvt Ltd (STPL) are providing 4G service across the country, apart from Ncell that has the largest coverage of 4G service.”
The MIS report also revealed that there are a total of 2.6 million 4G subscribers of Ncell so far, whereas NT and STPL have 762,945 and 174,816 4G users, respectively.
Although NT was the first to start 4G service in the country, till date it has been able to provide 4G service only in Kathmandu and Pokhara, whereas Ncell is currently providing the service in 1,000 different locations of seven provinces.
Within two years of the 4G launch, Ncell has expanded the service in 44 districts but the STPL is providing 4G service in four major cities – including Kathmandu, Bhaktapur, Lalitpur and Pokhara – in the country.
Meanwhile, NT has divided the 4G expansion project into three categories including Network I, Network II and Core Network. While the Nepse-listed company has awarded the Network I and Network II categories of the project to CCSI, ZTE Corporation has been awarded the contract to develop necessary core network and radio access network for the expansion of 4G or Long Term Evolution (LTE) service.
Likewise, the number of mobile data users reached 18.6 million compared to 14.3 million last year, it revealed, adding, “Of the total number of data users, 10 million are 3G users while remaining 136,573 users are using networks that are below 3G capacity.”
According to the MIS report, some 63.31 per cent, out of the total population, are using internet service across the country. “Of the total number of internet users, some 49.65 per cent are mobile network users, 12.47 per cent are fixed broadband users, while 1.18 per cent are wireless broadband users,” it stated in the report.

CG Telecom to operate mobile service

The Supreme Court has ordered the Nepal Telecommunications Authority (NTA) to allow the CG Communications (CG Telecom) to operate its mobile service. A single bench of Justice Deepak Raj Joshee issued the verdict in this connection today, paving the way for the CG Telecom to bring the mobile service – popularly known as 4G service – within 2019.
After the apex court's order, Chaudhary Group (CG) said that the company will expedite process to launch the mobile service at the earliest. "Following the court's order, our company is now ready to launch the mobile service," spokesperson at the CG Group Madhusudan Poudel said.
The CG Communications had filed a case at the Supreme Court after the authority did not allow the company to run the mobile service even though the company had already acquired Unified license.
A cabinet meeting – on Jestha 14, 2074 – had decided to give license to the CG Telecom to operate the mobile service in May 2017. But the telecommunications regulator has been putting on hold the government the decision. 
Though the government had already decided to provide basic telephony license to CG Telecom, the authority invited telecommunications companies for the auction of residual spectrum in 900/1800/2100 MHz band on Poush 4, 2075. The CG Telecom went to Supreme Court against the frequency auction, which hinders them from getting frequency spectrum. Without frequency spectrum, no telecom operator can start any of the mobile service operation (2G, 3G, 4G).
The SC decision also directs NTA to treat CG Telecom in the same way as other telecom operators. Putting the spectrum auction on hold, SC instructs NTA not to hinder in any way for the operation of mobile service by giving permission to bring equipment and operate with frequency spectrum.
CG Telecom had already started paying the pending sum for the royalty and frequency fees in installment, Poudel said, "Out of total Rs 360 million, CG Telecom has paid the first installement to NTA."
CG Telecom is a subsidiary of Chaudhary Group (CG), the multi-national company from Nepal which manufacturers Wai Wai, owns Nabil Bank, CG Electronics, hotels, insurance and more. Paudel also hinted that the company has already finalised the Strategic Partnership with world renowned International company.

Ncell contributes Rs 129 billion to government coffer

Ncell Pvt Ltd (Ncell) today announced that it has contributed approximately Rs 129 billion to the national treasury, in the form of fees, royalty and taxes to date. As a long-term and committed investor in the country, Ncell aims to maintain its lead as the largest tax payer of the country in coming years as well, it said.
"As of May 4, Ncell has contributed Rs 128.63 billion to the government in the form of tax, royalty and fees," managing director of Ncell Simon Perkins said.
"I am encouraged that Ncell has made significant contributions to the state treasury, which serves as important source of public funding in areas where it matters the most – such as building roads, schools and medical infrastructures that are core to the well being and welfare of the people of Nepal,” he said.
Ncell is the highest taxpayer in Nepal and has contributed steadily to government coffers for the fiscal years 2012-13 (2069-70) and 2013-14 (2070-71).
"In the fiscal year 2014-15 (2071-72) alone, Ncell paid more than Rs 28.6 billion to the government as tax, royalty and fees,” Perkins said, adding that the company wishes to continue with this trend and maintain its lead as the largest taxpayer for the longer-term.”
In order to maintain the lead and take the company to the next level, Ncell on May 9, has announced its largest ever capital expenditure (capex) spend of $120 million (approximately Rs 12 billion) for the remainder of 2016, aiming to expand 3G aggressively in rural and remote areas and also to enhance quality in areas where it is already present.
Ncell presently has network coverage that reaches out to 92 per cent of population, and serves more than 13 million customers. In recent years, Ncell has been rapidly expanding 3G, and has requested Nepal Telecommunications for approval for the company to provide 4G services.
Divulging more on revenue contribution, Perkins disclosed that Ncell as of May 4, has paid Rs 30.69 billion in advance tax, Rs 39.66 billion in Value Added Tax (VAT), more than Rs 7 billion in license fees, as well as approximately Rs 8.95 billion in royalty, among others. The company has also contributed Rs 4.20 billion to the Rural Telecommunications Development Fund (RTDF).
The telecommunication company’s contribution to the state coffers has been growing significantly year-on-year, which reflects Ncell’s ambitious investment plans and growth. Ncell has also been solidly contributing towards socioeconomic development in various areas of Nepali society, the telecommunication company added.
In keeping with its unblemished profile as a responsible corporate citizen committed to the welfare of the people and nation of Nepal, Ncell also aims at working closely with the regulator and the government to fulfil national goals to benefit Nepalis populace through the use of technology that can bring immediate and impactful results in education, health and mobile financial services, among others.