Nepal Telecom postpones 5G test plan

Nepal Telecommunications Company (NTC) has postponed its plan to test the 5G service.

The company had earlier announced to launch 5G test from todday. However, the plan has been put on hold as the number of mobile phones that are compatible with the 5G service is low among its users, according to the company spokesperson Shobhan Adhikari.

"We have completed the preparations but the plan has been put on hold due to technical reasons," he said, adding that the 5G devices that are compatible with the 2,600MHz required by the system are found very low in the market. "That’s why the plan has been put on hold now."

5G is a next-generation technology believed to change the way people live and work at present.

According to telecom experts, the network will be around 10-100 times faster than the existing 4G networks. "This improvement in the network could lead towards a wave of possibilities for new kinds of tech products in different sectors like health, business and automobile to name a few," they claim.

Mobile networks have evolved continuously for over time from 2G, 3G, 4G before the 5G.

Most of the Nepalis are currently using a 4G network, but Nepal Telecom and also the private telecom service provider, Ncell, are working on to provide 5G network services in Nepal also.

The government has recently allowed Nepal Telecom to carry out a test about the use of 5G internet technology in Nepal. Likewise, Worldlink, an ISP company, has launched a 5G wi-fi service with limited coverage.

If Nepal Telecom, Ncell and WorldLink succeed to provide 5G services in Nepal, the country will be the first to bring the 5G network in the South Asia.

Many countries are already competing to have the fastest, largest and more efficient 5G network. The 5G networks offers businesses access to lightning-fast data transfer speeds and improved network reliability.

According to the experts, the 5G network uses a type of encoding, which is similar to the encoding that 4G uses. But the air interface is designed for much lower latency and greater flexibility than 4G.

A 5G network can be built in different methods, mostly depending on the type of bands a wireless carrier has, they claim, adding that a low-band network will have a wide coverage area but will only be 20 per cent faster than 4G, and a high-band network will have superfast speed but has a smaller range and the signal gets disrupted through hard surfaces. "There are also mid-band networks that balance the speed and coverage."

Along with speed, a 5G network will also provide greater bandwidth, which means it can handle many more devices at once than the previous networks.

The 5G technology is very quick and is capable of supporting a large number of devices that can help digitise many industries. It will also help in preparing for the new wave of automation and AI.

But a consumer also have to have a 5G-enabled device to get the benefits of a 5G network.

Though most of the big companies like Samsung, Apple, Huawei, OnePlus, and Xiaomi have already launched devices that support a 5G network, the Nepali consumers with 5G devices that are compatible with the 2,600MHz required by the system are found very low in the domestic market, which has forced the Nepal Telecom to put its plan on hold.

But the 5G network also has some drawbacks like it will drain the battery quickly, due to which the 5G-enabled phones must have significantly large battery storage. The service seekers also have to invest in infrastructure and devices to be compatible to the 5G network, which is added cost for them.

Finally, Ncell to go public

Yet another multinational company – after Unilever Nepal – is going public soon.
A private telecom service provider, Ncell Pvt Ltd has converted itself into a public company, in line with the Nepal Telecommunication Authority (NTA) directives.
The company has also been renamed ‘Ncell Axiata Ltd’ from its earlier registered name Ncell Pvt Ltd, giving an indication to float share to the general public. Axiata is its parent company. Axiata is a multinational telecommunications conglomerate listed in Malaysian stock exchange.
Issuing a notice today, the first private mobile operator said that it has renamed ‘Ncell Axiata Ltd’ and got transformed into the public company following a decision of the Office of Company Registrar on Monday.
Earlier in 2016, a leading Asian telecommunication group headquartered in Malaysia Axiata Group acquired Ncell from TeliaSonera and Reynolds Holdings at $1.365 billion. The deal secured Axiata an 80 per cent equity interest and controlling stake in Ncell.
Nepal Telecommunication Authority (NTA) – the regulatory body of mobile service providers – had issued a circular to the licensed telecom service providers to offer their shares to the public. 
Another telecom service provider Nepal Telecom is already listed at Nepal Stock Exchange (Nepse). Ncell will be not only the second multinational company to be listed at the stock exchange but also second telecom service provider to be listed in the stock exchange.

Do not sell more than two sim card for each person: NTA

As multiutilisation of mobile number has been suspected of increasing criminal activities, the telecom regulator has made it stricter for the telecom service providers not to sell more than 2 sim cards in a bid to check the supposedly misuse.
Nepal Telecommunications Authority (NTA) has directed telecommunication service providers to stop selling more than two SIM/RIM cards to each person in a bid to stop the misuse especially in criminal cases. The NTA had directed cellular companies to enforce the new provision from July 8, according to the telecom regulator that also claimed that multiple uses of SIM/RIM cards pose a potential risk on digital payment and banking systems.
However, customers can take two sim cards from each service provider.
The increasing use of digital payment systems has made transactions more efficient in several ways but the untraceability of digital cash may encourage criminal activities such as money laundering, according to the regulator. “It could also pose a potential risk for criminal activities, with the utilisation of multiple cards on other digital services and social media which stores customer information in the phone,” it said, adding that the limited distribution of cards for each individual will, however, make it easier to trace the activities. “As the government is also planning to introduce a Citizens Apps, where mobile phones will be the primary way to access it, the limited distribution of SIM cards will minimise potential criminal activities.”
In line with the regulator’s directive, Nepal Telecom (NT) has also directed service providers to issue a limit of three SIM/RIM cards per person using CDMA service. “The parents should provide a proof of relationship document as well as other documents when getting a SIM card for minors,” the directives reads, adding that telecom service providers can only issue one SIM or RIM card per minor. “In case of customers, who already have registered more than one SIM card from telecommunication service providers, the cards need to be registered under the names of people who have been using it.”
The regulator has also warned the telecommunication service providers that they will face action as per the Telecommunication Act, 2053, if they do not follow the directives by the authority.
There are four licenced telecommunication service providers, but Nepal Telecom (NT), Ncell and Smart Cell have been providing the service.

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.”

Nepal Telecom to start 4G service in 50 cities

Nepal Telecom (NT) is bringing 4G services into operation in 50 urban areas throughout the country from Wednesday.
The telecom service provider is announcing the expansion of the 4G service by organising a programme – in Kathmandu – which would be addressed by Prime Minister KP Sharma Oli, according to the Nepal Telecom spokesperson Pratibha Baidya. “The BTS towers have been installed at more than 110 places to roll out the 4G service,” she said, adding that the number of BTS towers will reach 150 by Wednesday.
The 4G service will be started in Chandragadhi, Birtamod, Damak, Biratnagar, Inaruwa, Dharan, Dhankuta, Janakpur, Jesleshwar, Malangawa, Bara, Parsa, Simara, Kalaiya and Gaur. Similarly, the service will also be expanded to Dhading, Kavrepalanchok, Sundhupalchok, Bidur, Manthali, Bhimeshwar, Sindhulimadhi, Parbat, Kushma, Baglung, Chitwan, Sauraha, Taulihawa, Butwal, Devdaha, Tulsipur, Ghorahi, Nepalgunj, Kohalpur, Surkhet, Bhimdattanagar, Jhalari, Pipaladi, Chaumala and Attariya.
The 4G service is reaching more than 50 places at the same time, according to the Minister for Communications and Information Technology Gokul Prasad Banskota’s directive.
“The goal is to expand the 4G LTE service throughout the country by February 12, 2020,” she added.

Bar Telecos with dues from adding services, facilities and increasing capital

Parliamentary Finance Committee directed the telecom regulator to bar telecos from adding services, facilities and increasing capital until they clear their dues.
The committee has asked the Nepal Telecommunications Authority (NTA) to recover Rs 2.96 billion dues from different telecommunication companies. After the committee's diktat, the regulator had issued a notice on February 11 giving telecommunication companies one-month deadline to clear their dues. The deadline has already expired on March 10.   But the telcos asked the regulator to extend the deadline till mid-July – instead of paying the dues – saying that they need more time to induct more shareholders and investors to pay their dues.
The outstanding dues include taxes and fees like income tax, value added tax, frequency fee, renewal fee and compulsory contribution to Rural Telecommunication Development Fund, according to NTA.
Smart Telecom owes the highest at Rs 1.4 billion, whereas United Telecom Limited (UTL) and Nepal Satellite Telecom Pvt Ltd owe the government Rs 794 million and Rs 735 million, respectively, according to the regulator, that has decided to extend the deadline till mid-July as requested by some telecom companies. Though some companies has not yet responded to NTA's ultimatum, mid-July is the final deadline extension for them to clear dues, claimed the regulator.
The UTL is increasing paid-up capital to clear the dues, while Smart Telecom is planning to clear dues after bringing new investors. Likewise, Nepal Satellite Telecom is planning to clear dues in installments, after the regulator's letter.
The parliamentary Finance Committee had earlier instructed the Finance Ministry and Communication Ministry to recover the dues from different telecom companies. The committee had also instructed the NTA to start the process of scrapping operating licenses of the telecos that failed to clear dues within the deadline.
Meanwhile, the committee concluded that there are serious flaws in tax assessment systems, after studying tax compliance by telecom companies. "While studying ownership transfer of Ncell, the committee had asked all ministries concerned to submit details of shares transfer of Ncell and Spice Nepal, all minutes of decisions, and the list of officials of Finance Ministry, Nepal Rastra Bank (NRB), Inland Revenue Department (IRD), Large Taxpayers Office (LTO), who took decisions on assessment of CGT in Ncell buyout.
Chairperson of the Finance Committee Krishna Prasad Dahal said that government agencies cannot violate instructions given by the parliamentary committee. 

NTA chairperson Jha resigns

After three month-and-a-half of his appointment, the chairperson of Nepal Telecom Authority (NTA) Digambar Jha has resigned from his post. He submitted his resignation to communication minister Gokul Baskota today afternoon.
Sensing that the incumbent KP Sharma Oli-led government is going to sack him due to the pressure from within the party, he has put in this paper today afternoon. Before the election, he was appointed by the then Sher Bahadur Dueba-led government. But Jha lost his job after a cabinet meeting on July 4 decided to scrap the appointment made by the erstwhile government of Deuba. Jha had moved the court against the decision of the government. But after agreement with the communication minister Baskota, he took his case back.
Later, Jha was re-appointed as the chairperson of the regulator of the telecommunications sector on September 6 through 'open competition'. It was his third stint as the chairperson of the NTA. But his appointment was controversial within the ruling party itself, and outside of the party.
After a Standing Committee meeting of the Nepal Communist Party (NCP) last week extensively criticised his appointment, some 43 leaders of the ruling party – the day before – has also submitted a memorandum to the chairperson duo KP Sharma Oli and Puspa Kamal Dahal 'Prachanda' asking them to sack the 'corrupt' Jha. Minister Baskota has been blamed for appointing him by taking bribe.
Feeling the heat, Jha today morning organised a press meet and blamed the ruling party for his character assassination. He also challenged them to prove the corruption charge. He claimed that he was going to scrap the licence of UTL, STL and CG as they have been only holding the licence. "There are only two players, Nepal telecom and Ncell, which are serving the customers," he said, adding that one additional multinational player will be enough for the domestic market.

Amarasekera appointed as new Ncell managing director

Ncell has replaced its managing director Simon John Perkins with Suren J Amarasekera.
Perkins, according to the company, will assume a new role at the head office of Axiata – Ncell’s parent company – in Kuala Lumpur supporting South Asia operations.
Amarasekera brings with him 25 years of extensive experience in the telecommunications industry, including nine years of experience as chief executive officer and 16 years of senior management experience in globally renowned telecom companies such as Singapore Telecommunications, Sri Lanka Telecom’s Mobitel, Maxis Berhad in Malaysia and Aircel in India, reads a press note issued by Ncell.
"I am proud to have been given this opportunity," he said, adding that he will be looking forward to joining Ncell and building on the brand to be one that is loved by its consumers, while contributing to the vision of digital Nepal and delivering on Axiata’s vision of advancing Asia.
Amarasekera has previously served as strategic projects director in Axiata Group Berhad’s corporate headquarters in Kuala Lumpur, Malaysia, focusing on key group initiatives across its South Asian operations in Bangladesh, Nepal, Sri Lanka and Pakistan.
The board directors of Ncell have stated they are confident that Ncell will achieve new milestones under his leadership, including digital inclusion for the overall advancement of the country.

Government delaying action against tax cheaters

Despite clear direction of the Parliamentary Accounts Committee (PAC) to investigate and penalise responsible authorities for not recovering capital gains tax (CGT) from the seller of GSM operator Ncell, concerned authorities, after 10 months of the shares transfer, are arguing on who should pay the CGT.
According to domestic and international laws, the CGT has to be paid by the seller.
Though PAC, on May 29, wrote to the Commission for the Investigation of Abuse of Authority (CIAA) to investigate the transaction from the very beginning and penalise the officials responsible, neither the CIAA nor the government has heeded the PAC directive.
The government could lose the CGT, if the dilemma and misinterpretation of the law continues any further.
Albeit late, the cabinet last week decided to recover capital gains tax (CGT) from the seller ie Swedish telecom operator TeliaSonera on the basis of decision of the Public Accounts Committee (PAC) of May 29 and Finance Committee of June 3.
Malaysian telecom giant Axiata had bought Reynolds Holding, which held a majority stake in Ncell, from TeliaSonera at around US$ 1.03 billion in April last year. Reynolds Holding was TeliaSonera's wholly-owned subsidiary registered at Saint Kitts and Nevis, a tax haven.
The TeliaSonera had sold its entire stakes in Ncell as part of its strategy to exit Asian and former Soviet markets to focus on Europe and its home Nordic region. The Swedish firm had sold a 60 per cent stake in Ncell and also dissolved its interest in an additional 20 per cent stake owned by local partner in December 2015. Ncell officially became a part of Axiata Group Bhd on April 12, 2016.
But the Nepali taxmen started an initiative to tax the transaction only after TeliaSonera exited Nepal.
The largest transaction in Nepali corporate history has been in news – affecting Ncell's plan to rollout 4G services – also due to some of the responsible government officials, including director general of Inland Revenue Department Chudamani Sharma and chief of the Large Tax payers' Office (LTO) Shovakanta Poudel. Sharma has been claiming that TeliaSonera does not need to pay CGT in Nepal, whereas Poudel has not yet calculated how much CGT the government owns to the TeliaSonera, currently Telia.
TeliaSonera has been however claiming that there is no need to pay CGT in Nepal since the transaction had taken place elsewhere. Responding to an email query press officer of TeliaSonera Johanna Hansson said that recent reports in Nepali media do not change TeliaSonera's view on the tax situation. "We are still of the firm belief that Telia should not pay CGT on the international part of the transaction relating to the sale of Ncell," she added.

House approves amendment to Company Act

The Company Act Amendment Bill has finally been endorsed by the parliament.
The bill, which couldn’t get through the parliament on Friday due to lack of a quorum, was endorsed today. The new law is expected to simplify entry, operation and exit of companies in Nepal.
One of the key laws that could encourage prospective investors – both domestic and foreign – in Nepal, the amendment to the Company Act (2063 BS) has made things easier for companies, which are defunct for long and are looking to wind up their operations legally, according to industry minister Nabindra Raj Joshi.
The amendment has also relieved individuals and firms of liability to pay fees and fines piled up for several years. Such individuals and firms will have to pay only one per cent of their paid-up capital, according to a provision in the new law. Companies, which failed to report their operation details and pay liabilities for several years, can enjoy this facility for one time only.
“Around 50,000 defunct companies can benefit from this exit scheme,” according to the ministry.
According to the Act that has given exit chance to domestic and foreign firms in Nepal that are registered but are no longer in operation, any defunct firm can exist by paying 0.5 per cent of its paid-up capital or 0.5 per cent of due taxes that such companies owe to the government – whichever is less – in the next two years.
According to Joshi, the amendment, which started five years ago, has a number of provisions aimed at easing doing business and creating more jobs in the country.
“Apart from easy exit, the amendment has also made entry of a company easy,” Joshi said, adding that the amendments in the Company Act are expected to improve doing business environment and also attract private sector investments including foreign direct investments. "The Act has also given validity to online registration of companies and use of digital signatures."
With the introduction of online company registration three years ago, Nepal’s doing business indicator had progressed by five points.
The new law has also raised the threshold of paid-up capital of firms requiring compulsory formation of three-member auditors committee for auditing of their financial operations to Rs 100 million from existing Rs 30 million. Likewise, a firm can donate up to Rs 100,000 in a fiscal year up from Rs 50,000 in the existing law.
The legislature has also capped administrative cost of firms not distributing profit in the past year at 25 per cent of their annual expenditure. This measure is also believed to tighten screws on unscrupulous firms reporting loss by showing bloated meeting allowance and other unnecessary costs.
Similarly, the new Company Act has also increased the upper limit of number of promoters in a company from 50 to 101. The government has also introduced a provision whereby promoters of any company can participate in their annual general meeting (AGM) through video conference.

Telecommunication service providers must go public
Likewise, the new amendment has also made it mandatory for telecom companies having paid-up capital of Rs 50 million or above to float their shares to general public within the next two years. With such provision in the new law, private telecom operators will have to issue shares to the public in near future.
Except Nepal Telecom (NT), other five telecom service providers in Nepal are owned by the private sector. Among the private sector-owned telecom operators in the country, paid-up capital of United Telecom Ltd (UTL), Nepal Satellite Telecom and Ncell exceeds Rs 50 million. According to the Company Registrar Prem Kumar Shrestha, the provision is introduced for private telecom operators as they have comparatively higher direct every day linkage with the public.

Ncell's 'Early Flood Alerts' nominated for global award

Ncell's initiative of sending flood alerts to the people living in downstream river basin during monsoon has been shortlisted for the prestigious Global Mobile (Glomo) Awards 2017.
The initiative has helped people to safety and save livestock and other movable property during flood, a statement issued by Ncell said.
'Ncell Pvt Ltd for Early Flood Alerts' has been nominated under the Category 3: Social and Economic Development-Mobile in Emergency or Humanitarian Situations, GSM Association (GSMA) said in its release today.
The winners of the Global Mobile Awards 2017 will be presented throughout Mobile World Congress, which takes place on February 27 to March 2 in Barcelona, the GSMA's press note reads.
“The Glomo Awards recognise those companies and individuals that are driving innovation in the rapidly evolving mobile industry, and we are excited to this year introduce several new awards that highlight the very latest developments in this dynamic industry," chief marketing officer at the GSMA Michael O’Hara, said in the press note. "We wish the best of luck to the 2017 Glomo Award nominees."
"We are delighted that our early warning alerts initiative, which has made significant contribution in saving life and minimising loss, has been well appreciated and duly recognised by global industry community," said corporate communications export of Ncell Milan Sharma. "We value this collaboration with DoHM and are glad for being able to empower the people with crucial flow of life saving information."
In 2016 too, Ncell was crowned with GSMA Glomo Awards for Mobile in Emergency of Humanitarian Situations. The company had shared the awards with Flowminder Foundation for collaboration that tracked population movement during 2015 earthquake, contributing to effective targeting of humanitarian aid and relief support.

Nepal Telecom to start 4G services from January 1

The Nepal Telecom has announced that it is starting the fourth generation (4G) dervices to its customers from January 1. "The consumers will be able to use 4G telecommunication service for the first time from 2017 as Nepal Telecom, the state-owned telecom service provider, is starting the new service in two major cities from January 1," it claimed.
The telecom companies till now provide only 2G and 3G services. In July this year, the government had opened the doors for telecom companies to operate 4G service by amending the Radio Frequency Policy.
The two telecom service providers – Nepal Telecom and Ncell – had applied for the operation of the 4G services. But Nepal Telecom is the first company to receive permission from the Nepal Telecommunications Authority (NTA), the regulatory body, to start the new service.
“We are starting 4G service in Kathmandu and Pokhara from January 1, 2017” said the NT officials. "We will expand the service in other areas of the country gradually."
The 4G service is expected to help customers to operate the various services requiring high bandwidth such as video in an easier way.
Lately beside NT, three other telecom operators – Ncell, United Telecom Limited (UTL) and Smart Telecom, all privately owned, have also applied to NTA for approval to operate 4G service.
However, the NTA said that they were studying the roll out plans of the private sector telecom operators. There are currently six telecom operators in Nepal. But the Ncell claimed that they were ready to offer the 4G service to their customer, immediately after they receive the permission.
Despite the 113 per cent teledensity in the contry, according to the MIS report of the NTA, the telecoms sector has very nominal contribution to the economy. According to the various studies, increase in 10 per cent of teledensity will contribute one per cent to the gross domestic production (GDP). However, it has not been the case in Nepal.  

Indian govt approves end to FDI cap in telecom sector

The Indian government has liberalised foreign direct investment (FDI) limits in a dozen sectors, including allowing 100 per cent foreign shareholdings in telecommunications companies.
In basic and mobile services, the Indian cabinet agreed to drop the current 74 per cent cap on foreign shareholdings. In future, up to 49 per cent of an Indian operator can be acquired directly by a foreign investor, while any higher shareholding must still receive approval from the Foreign Investment Promotion Board.

India approves 100 per cent FDI in telecom sector

The Telecom Commission in India, the decision-making body of the Department of Telecommunication (DoT), approved 100 per cent foreign direct investment (FDI) in the telecommunication sector, reported The Economic Times.
Once ratified, the policy will allow foreign companies to own 100 per cent of Indian operators, and they will no longer need to have a minority shareholder based in India. Foreign companies will be able to acquire up to 49 per cent directly, with further investments subject to approval by the Foreign Investment Promotion Board (FIPB), a senior Indian government official said. "The decision will come into force once the India' cabinet approves it."
At present, FDI in the sector is limited to 74 per cent of an Indian operator.

International phone traffic up by five per cent to 490bn minutes in 2012

International telephone traffic grew by five per cent in 2012, to 490 billion minutes, according to data from TeleGeography, a data-driven international telecommunications market research and analysis agency.
The traffic increase was mainly due to international migration, the rapid uptake of mobile phones in developing countries, and steady reductions in international call prices — especially in the form of flat-rate (and even free) calling plans.

Nevertheless, recent growth rates are well below the 13 per cent average that operators could count on to offset price declines over the past 20 years, it said, adding that while international phone traffic growth is slowing, traffic from voice and messaging applications like Skype continues to increase at a stunning pace, the report shows.
The study also estimated that cross-border Skype-to-Skype voice and video traffic grew by 44 per cent in 2012, to 167 billion minutes. “The increase of nearly 51 billion minutes is more than twice that achieved by all international operators in the world, combined.”
Moreover, if Skype’s traffic were added to the volume of international phone calls, international voice traffic would have grown by 13 per cent in 2012, in line with historical trends. It suggests that although demand for cross-border communications has not declined, an ever growing number of callers have chosen to take telecoms operators out of the equation.

The pressure on carriers is expected to rise in the coming years.
The report further indicated that, while Skype is the best-known voice application, a host of alternatives, including Google (Talk and Voice), WeChat (Weixin), Viber, Nimbuzz, Line, and KakaoTalk have gained popularity.