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Impact of COVID-19 in Nepal’s Telecommunications sector

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1 February 2021, Kathmandu

Nepal’s telecom sector has shrunk by high numbers due to the Corona pandemic. Nepal’s telecommunications sector has forced to shrink drastically.

Due to the long-term lockdown and low use of telecommunications services around the world, including in Nepal. For the prevention and control of the coronavirus pandemic.

Looking at the statistics of the last fiscal year. It is seen that the Nepali telecommunication sector will shrink to Rs. 90 billion.

According to the Nepal Telecommunications Authority, total revenues for the telecommunications sector are projected to be about Rs. 90 billion in the fiscal year 2076/77.

According to NTA, the telecom service providers have managed to earn around Rs 87.30 billion in the current fiscal year.

According to NTA, the total telecommunications sector decreased to Rs 90 billion. As per the financial statements of the telecommunications service companies which submitted their financial statements by mid-December 2020.

According to the information, in the last fiscal year, 57 companies submitted their financial statements to NTA from telecommunications service providers. According to NYA, some 116 companies are expected to file their financial statements last year.

Many major companies have already issued their financial statements. Any large Internet service providers and small businesses did not submit their financial statements by mid-December.

Among the companies that have not submitted their financial statements till mid-December are Broadlink Network and Communications Pvt., Classic Tech Pvt., Mercantile Communications Pvt., Techminds Network Pvt., Web Surfer Nepal Communications Pvt.

Based on the fact that major and large telecommunication service providers have already submitted their financial statements. It is seen that the Nepali telecommunication sector will be around Rs. 90 billion.

The telecom sector has crossed the 100 billion mark in the previous year. But it has shrunk by about 11 billion rupees in the last fiscal year. In the previous Fiscal Year 2075/76, the overall revenue of the Nepali telecommunication sector was Rs. 101.35 billion.

NTA Director and Spokesperson Min Prasad Aryal said that COVID-19 has also affected the telecommunications sector.

‘Nepal’s telecommunications sector appears to have received about Rs 90 billion in revenue last year. This is much less than in the previous year. COVID-19 has influenced both the economic sector as a whole and the telecommunications sector,” said Aryal, spokesperson.

According to him, some companies are yet to provide information. The current Rs 87 billion will add a few billion rupees. But this amount would be much less than the previous year.

Spokesperson Aryal speculated that the profits of the companies may have been decreased because the use of telecommunications services was very limited. Except for data services, when people were living in their homes.

State-owned Nepal Telecom and private firm Ncell Axiata accounted for the largest share of overall revenues. They have received about Rs 71 billion on their own. According to NTA, Nepal Telecom has earned Rs 34.73 billion in the last fiscal year. While Ncell Axiata has earned Rs 46.76 billion in the same fiscal year.

Earlier, large telecommunications firms had made public their negotiated sales through their quarterly financial statements.

Similarly, numerous estimates have shown that there will be no clear development and change in the global telecommunications sector until 2023.


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