Does the telecom sector in Nepal need a wave-like Jio brought in India?

What could wonder than an affordable sim card provider to a market with one of the world’s most expensive data! The market of telecom in Nepal is very limited and hence quite expensive. 

Nepal has one of the most expensive mobile data in all of South Asia! To put in perspective how high the prices are, Nepalese spend 2.8% of their per capita income on mobile data. Whereas countries like India and Pakistan spend less than 1 %. This is the fact released by the report of International Telecommunication Union’s stat.

The fact that Nepal spends more on mobile data than developed countries like India gives us an idea about the demand and agreeing consumers. 

mobile users

Despite the high prices, Nepal’s telecommunication market has been growing significantly throughout the years. There were 40,789,198 telephones (fixed plus mobiles) users reported in May of 2019! 

The market of Nepal seems to be almost desperate. The numbers are quite high for the pricey rates.

There are only 8 licensed companies in the market out of which 5 have heavy foreign influence.

The most popular ones as we already know are Ncell and NTC. Unfortunately, Nepalese are being exploited yet again, foreign companies utilizing the weak market.

Among the most popular ones NTC and Ncell, NTC does have a cheaper rate. Yet Ncell flaunts many kinds of discounts and packages which attract people. 

Also Read: Covid-19 and Its Impact On Ecommerce In Nepal!

HOW JIO CHANGED TELECOM SECTOR IN INDIA?

A sim card that came by storm to entire India and its telecommunication market.

Reliance Jio, launched in 2015 was so much more than its cheap rate. It paved an entirely new path for the telecommunication market of India. It provided light to the people in the dark, who were not able to afford the internet. Airtel who was struggling to attract consumers to its pricey 4G package was soon left behind with the free 4G offers on Jio.

The Jio sim card has shaken the entire market. Not only did they already provide cheap sim cards, but they also released the Jio Phone. Making smartphones as well as the internet widely accessible and cheap across India. 

The market could not just sit back and observe. The competitors also had to lower their prices to last in the game. Aircel, a telecommunication company went bankrupt after being unable to last the blow of Jio. 

Jio had a great impact on its people and the internet also. With more users on the internet, Indian content on media grew and gained more views than before. And that is how a simple sim card from Reliance made such a great impact on India.

COULD THE SAME HAPPEN IN NEPAL?

The previously announced CG telecom has the same amount of potential to stir the entire telecommunication market of Nepal. They also intend to release their sim cards and 4G at cheaper rates accessible to everyone. If this were to happen, a VERY SIMILAR CASE would ensue.

At present, it costs Rs 1 per MB for Nepal Telecom and Rs 2 for Ncell when using mobile data exclusive of tax. Whereas, Smart Cell costs Rs 1.92 per MB inclusive of tax. These rates are without any data pack.

But these prices could be more affordable if CG launches.

Also, 4G would be used in rural parts of the country as well. With the spread of the internet, the entire community of Nepal could also change. Rapid growth in internet access stands to shorten the opportunity gap between rural and urban areas.

Access to the internet also means access to services that can improve the quality of life for many people. It could develop and progress, a good change. 

Most importantly, pricey telecom sectors in Nepal would have different scenarios. The launch of one affordable alternative is all it takes to start a stir in the market. 

Nepal is quite in need of such a project. Consumers have been spending too much money on mobile internet and there is a high need for a breakthrough in the telecommunication market of Nepal. 

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