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Message from the Chairman of the Board of Directors Nepal Telecom Message from the Chairman of the Board of Directors Digitalization and dematerialization have started Telecom in voice services is above 44%. Similarly, to show clear impact on how people live, learn, data/internet penetration rate has reached 31.69%, communicate, commute and work. These global and the Market Share of Nepal Telecom in data trends (i.e. digitalization and dematerialization) services is above 51%. Although these figures are the basic functions of Information and indicate that telecommunications services are Communications Technology (ICT) that convert the reaching the saturation levels, the global trend of ‘physical’ into ‘digital’ or ‘virtual’. Acceptance and personalized devices with multiple SIM cards and adaptation of this trend is permanently transforming location-based services assure that there are still the activities and lifestyles of the people globally. enough spaces to grow, multiply and prosper. User friendly applications (particularly Apps or Mobile With almost a century old legacy of Apps) that ride on data networks are gaining market telecommunications services, Nepal Telecom has and providing huge convenience to the users to been introducing and expanding huge portfolio avail services like weather forecasts, payment of of telecommunications services throughout the invoices, games, music, etc. country. The topographical and climatic challenges where common and less expensive technologies Out of the six telecom service licensees in the country, are generally not feasible, Nepal Telecom has Nepal Telecom is the only telecommunications accepted such challenges not as an obstacle, but as service provider that is serving the nation by an opportunity to provide voice and data services aligning its new business plans with the plans by devising unique, specialized networks. GSM/ and programs of the Government of Nepal. Nepal CDMA technology-based service in extremely Telecom has been providing traditional landline remote mountainous regions via expensive satellite (or, PSTN) services, highly popular GSM-mobile & backbone networks is an example of Nepal Telecom’s CDMA-mobile services, CDMA-WLL services, and determination to serve the general public even in VSAT-based services for geographically challenging extremely remote mountainous areas. terrains. Nepal Telecom is proudly serving more than 1-crore 5-lakh subscribers under its broad portfolio As of April 2014, national voice-teledensity has of services as of May 2014. reached 88.49%, and the Market Share of Nepal 2012/13 1 Annual Report Nepal Telecom On the other hand, Nepal Telecom is an ISP (Internet telecommunications services in the competitive Service Provider) that has been continuously environment has a challenge to provide ‘Touch & expanding its Internet foot-print throughout the Feel experience’ of its services to its prospective country. The highly popular ADSL service that customers, and as such has started final works provides High Speed Internet (HSI) through fixed related to establishing ‘Customer Experience Center’ lines, EVDO service on CDMA network and 3G services in 10 major cities throughout the country on high on GSM network are proudly serving more than 43- priority. These centers would provide assurances lakh 45 thousand subscribers. From the perspectives to the prospective customers that Nepal Telecom of district-wise availability of data services, GSM- provides suitable services to the countrymen based 3G service is available in 53 districts, CDMA- on appropriate technologies. In line with this effort, EVDO service in 62 districts, WiMAX (Worldwide selection process to hire a Marketing Consultant is Interoperability for Microwave Access) service in 72 also progressing. Marketing concepts that are new, districts and the Wi-Fi Hotspots targeting crowded attractive and convincing are always important in public places like tourist centers, universities, parks, any competitive market, and Nepal Telecom is trying hospitals are available in 220 locations of 43 districts its best to provide such aspects to its customers and of the country. the prospective customers. The ambitious project of CRTB & CS (Convergent On the financial front, in comparison to that of the Real Time Billing & Customer Support) would previous year, FY 2069/70 has recorded a growth converge most of the services under Nepal Telecom in its total revenue by 4.22% to Rs. 38.85 billion. In umbrella. Billing, customer care, facility modification the same FY, the Net-Profit-before-tax is Rs. 15.13 and other services under IP-CDMA are already being billion, and the Net-Profit-after-tax stands at Rs. implemented through CRTB&CS system in IP-CDMA. 11.29 billion. Especially due to a huge out-payment After complete customer data migration of GSM on license fees in this FY 2069/70 that were not paid system, CRM (Customer Relationship Management) in previous years due to lack of clarity, the Earnings- of both the CDMA and GSM services would be Per-Share (EPS) of the company has slightly dipped possible through CRTB&CS system. to Rs. 75.33 from Rs. 77.73 of the previous year. However, the Book-Value-per-share has still grown Another interesting service that Nepal Telecom is from Rs. 330.19 of the previous year to Rs. 357.57 in going to launch in near future is the UCS (Unified this FY 2069/70. Communication System). This service will be available as a VAS, and will allow integrated voice, data, and Nepal Telecom has been awarded by the video services apart from social networking services. Government of Nepal for paying the highest income tax in the year 2069/70. The overall strong financial Until a decade back, life used to be simpler. condition and strong cash flow has resulted into Concerning telephone service, there were no other assurances for professional growth in the future. The options, but to visit a nearby telephone office for management and employees have been sincerely payment of dues, line complaints, subscription of engaged in enhancing shareholder’s value, and new services, etc. Now, apart from the option of positively impacting social and economic activities visiting nearby offices, Nepal Telecom’s customers in the country. have the convenience of subscribing some of the new services via their mobile handsets and re- A major breakthrough is expected in the present charging their subscribed services via numerous somewhat-monopolistic & process-oriented means like recharge cards available in neighborhood working style of the company to a competitive & groceries, MPOS machines in shops, ATMs in outlets result-oriented working style after the introduction of commercial banks, KIOSK terminals in super- of Strategic Partner. The selection process for a markets, and even via online banking services. Consultant is almost at the final stages, and then the selection process for the actual Strategic Partner will Nepal Telecom having a huge portfolio of begin. 2 2012/13 Annual Report Nepal Telecom It is indeed a pleasure to reiterate here that At this moment, it is our satisfaction to share with investment diversification efforts of Nepal Telecom you that Nepal and the Nepalese are steadily under agreement with Nepal Electricity Authority following the global trend, and Nepal Telecom is for Upper Tamakoshi Hydroelectricity Project and proud to be blessed with favor and good-will of its Trishuli-III-B Hydroelectricity Project are undergoing customers, national/international business partners satisfactorily. Now it is time to seriously consider and the general public! We take this opportunity investments in some subsidiaries that support to extend gratitude to the Government of Nepal, Nepal Telecom directly and the telecommunications government entities, Nepal Stock Exchange Ltd., fraternity in general. As such, processes have Nepal Telecommunications Authority, Office of started to prepare documents for establishing the Company Registrar, national and international an IT-subsidiary company and an Infrastructure agencies including humanitarian agencies for their Development company. trust and support to Nepal Telecom. Nepal Telecom has been performing not merely as a Nepal Telecom and its services have become a part service provider, but as a responsible entity to impart of the Nepalese lifestyle, and we are determined knowledge on global trends revolving around the to serve Nepal and the Nepalese in all aspects of power of ICT, and putting in its best effort to make the their lifestyles through accessible, affordable and services accessible, affordable and dependable. This dependable telecommunications services. is expected to result into capacity enhancement of the general public, economic prosperity and overall Let me congratulate all of you for being part of national development. Nepal Telecom’s efforts have this achievement. been enabling the general public and providing means for the communities and the government to Thank You! communicate directly with each other, and Nepal Telecom has been successfully proving its worth as a motivator for socio-economic transformation. Suman Prasad Sharma Chairman 2012/13 3 Annual Report Nepal Telecom OUR VISION “Our vision is to remain a market leader in information and technology sector in the country while also extending reliable and cost effective services to all.” 4 2012/13 Annual Report Nepal Telecom OUR MISSION “Nepal Telecom, as a progressive, customer spirited and consumer responsive entity, is committed to provide nation-wide reliable telecommunication services to serve as an impetus to the social, political
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