Internet bandwidth cost down‚ consumption up
KATHMANDU:
Even as there has been significant rise in internet users, the cost to Nepali internet service providers (ISPs) for internet bandwidth has declined. Nepal Telecommunications Authority (NTA) said service providers spent Rs 2.39 billion as bandwidth fees in the last fiscal year.
The internet bandwidth charge paid to international companies providing bandwidth service is nearly eight per cent less compared with Rs 2.59 billion of the previous fiscal year 2012-13.
NTA officials said that the fall in price of internet bandwidth cost globally contributed to the decline in the bandwidth expenses for Nepali companies too.
According to NTA, the amount paid for bandwidth is based on the foreign exchange facility recommended to telecom companies and network service providers (NSPs) that sell internet bandwidth to ISPs. Nepal Rastra Bank gives the exchange facility to NTA licensees upon receiving recommendation from NTA via the Ministry of Information and Communications.
ISPs buy bandwidth from NSPs and provide service to customers, dividing the internet bandwidth they bought. Service providers’ gradual switch from costly satellite connection to optical fibre is also attributed to the reduction in bandwidth costs.
Binay Bohara, president of Internet Service Providers Association, Nepal said that though the cost has declined, the consumption of internet bandwidth in the country has been increasing rapidly. “Internet consumption has almost doubled and the speed of data connectivity has gone up as well,” he added.
Internet consumption is in increasing trend due to multiple reasons such as boom in mobile data users, increasing use of smartphones and video streaming, among others.
Similarly, owing to reduction in bandwidth fee and market competition, internet connection charges have been declining. NTA data shows that total number of users of data service reached close to nine million by last fiscal year, up from 6.91 million in the previous fiscal year-end.
According to NTA, two telecom companies — Ncell and Nepal Telecom — which are also the licensees of ISP spent Rs 1.18 billion and Rs 992.5 million, respectively, on bandwidth during the last fiscal year. Communications and Communicate paid Rs 69.36 million as bandwidth cost, Nepal Satellite Telecom 40.6 million and Mercantile Communication Rs 28.96 million.
NTA officials said that the bandwidth consumption is expected to grow more from current fiscal year with telecom companies and other ISPs competing to provide high speed internet service at cheaper rates. Customers have multiple choices for data service, ranging from GPRS and high speed lease line service to 3G mobile data service.
Source: THT
