Nepal Telecom's profit plunges 16% amid increasing use of OTT platforms

Thursday 16 May 2019 | 09:33 CET | News
State-owned operator Nepal Telecom saw its profit decline by 16 percent year-on-year to NPT 3.64 billion in the quarter ended 31 March 2019, The Kathmandu Post reports. The revenue decline as mainly due to customers’ increasing preference for OTT messaging services WhatsApp and Facebook Messenger over long distance and domestic voice calls. “In recent years, due to the popularity of over-the-top services, the interconnection business was negatively affected, and the result is seen in the company’s revenue”, the company said. 

Nepal Telecom also reports it has taken measures to offset the impact of OTT services with new revenue sources. “There is an industrywide slowdown in revenue from long distance calls, which used to be a major source of income, mainly because of over-the-top services”, said Dilli Ram Adhikari, managing director of Nepal Telecom. “To offset the impact of over-the-top services, we are expanding our 4G network, particularly focusing on rural areas to meet mobile data needs, and replacing ADSL lines with fibre to the home connection”, the company executive also said. 

According to Adhikari, revenue from voice calls and mobile data services increased, but the shift from standard tariffs to packages slowed down profit growth despite the increasing mobile data traffic and subscriber base.

Nepal Telecom deployed 407 base receiver systems and upgraded another 400 base stations in the first nine months of the current financial year. The company ended march with 10 million customers across the country. Nepal Telecom is also expanding its network to replace the current ADSL system with fibre to the home technology. The operator’s network can now support 40,960 FTTH connections across the country.

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Categories: Mobile & Wireless
Companies: Facebook / Nepal Telecom / WhatsApp
Countries: Nepal
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