Nepal Telecom Market Size (2024 - 2029)

Nepal Telecom Market Analysis

The Nepal telecom market is expected to grow at a CAGR of 7% over the next five years. Nepal's telecom industry is challenged by various topographical and financial issues that have made it difficult to build the network infrastructure and raise end-user service standards. The telecom industry in the country is consolidated with the three major telecom players, Smart Telecom Private Limited (STPL), Ncell Axiata Limited, and Nepal Doorsanchar Company Limited (NDCL).

• To make Nepal a significant center for international communications, the Nepali government has taken the initiative. In Nepal's telecom industry, the mobile market remains the key emphasis. Due to operator infrastructure expansion, Nepal's mobile sector continues to get most of the domestic capital investment. Government-sponsored reforms and policies, especially during the past decade, have fundamentally altered the landscape of Nepal's telecommunications industry.
• In Nepal, there is still room for growth in the fixed-line sector. The monopoly of the mobile market is a significant factor in this. As mobile usage for voice and data/broadband use continues to rise, the industry is expected to expand marginally more over the next five years through 2027. The overall wireless market in Nepal has grown incredibly quickly over the past five years and is now comparatively established. Due to fierce local rivalry and a relatively saturated market, the country would be restrained from seeing faster growth.
• The national telecommunications network in Nepal is massive. Robust growth in the number of telecom customers has forced network expansion to serve a larger region, necessitating a sizeable investment in telecom infrastructure. As a result of an increase in data use, the leading mobile providers are currently preparing to expand their coverage. High levels of investment have been made in new data centers due to the yearly growth in the amount of data processed and the rising need for data localization.
• With the extensive coverage of 654 local bodies and 85% of the population, Nepal Telecom expanded its 4G network to the nation's 77 districts. The fifth generation (5G) mobile internet, which would soon be available in Nepal, is supported by FTTH, making it a crucial initiative. Nepal Telecom (NTC) has long been involved in the 5G trend. In November 2021, the state-owned telecom obtained the 5G spectrum. And at long last, the business is about to start 5G trials in the nation after over a year of waiting. Sundhara and Babarmahal in Kathmandu would be the first locations where the telecom launches its fifth-generation network before moving on to more towns.,
• The COVID-19 outbreak brought attention to how crucial connectivity is to Nepal's society, commerce, and economy. Utilizing digitalization for the betterment of the nation's telecom expansion has been one of Government Nepal's main goals. It was the pandemic that accelerated this process. The government has also introduced technologies like Nepal National Single0 Window to make online import and export transactions more seamless. During the pandemic, mobile banking and mobile payment usage increased. As mentioned in an IIDS report on the Digitization of the Nepali Economy, digital transactions have increased dramatically from NPR 3.1 billion (USD 24000 million) in the fiscal year 2016-17 to NPR 221.1 billion (USD 1.70 billion in the fiscal year 2019-20. Undoubtedly, Nepal's telecom sector made massive progress during the COVID-19 pandemic.

Nepal Telecom Industry Segmentation

The report provides an in-depth analysis of the telecommunication industry in Nepal. 

The market studied is segmented by service (voice services (wired, wireless), data and messaging services, and OTT and pay TV). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.