Ncell posts 122 percent growth in revenue
KATHMANDU, JAN 26 -
Ncell has posted a 122 percent growth in revenue in fiscal 2010-11 in line with its fast expanding subscriber base.
The telecom operator’s income soared to Rs 17.53 billion, up from Rs 7.89 billion in fiscal 2009-10, according to the Nepal Telecommunications Authority (NTA). Last year, it added 2.7 million new users to its network.
The phenominal growth in revenue has been attributed to its aggressive marketing, re-branding exercise, launch of new services and infrastructure expansion.
Ncell is Nepal’s largest mobile service provider in terms of subscriber base and second largest in terms of revenue after Nepal Telecom (NT). With NT’s revenue growth slowing down, Ncell is likely to overtake the state-owned telecom giant as the largest revenue earner within a couple of years. This month, Ncell’s subscriber base surpassed the 7-million mark.
Ncell accounted for 38.64 percent of the total revenue in the telecom sector—up from 22.95 percent in 2009-10. Meanwhile, NT’s share in total telecom revenue declined to 58.20 percent from 72.88 percent for the corresponding period. NT earned Rs 26.40 billion in 2010-11 compared to Rs 25.05 billion in the previous year and added 1.27 million new subscribers.
Seeing its market share shrinking under Ncell’s onslaught, the state-owned company has speeded up work to add 10 million GSM lines. It GSM mega project received the go-ahead from the Commission for Investigation of Abuse of Authority (CIAA) recently. In mid-December 2011, the anti-graft body had directed the company to put on hold the tender process on suspicion of irregularities.
According to the NTA, the total income of the telecom sector grew 31.98 percent after a tremendous growth in the number of mobile users in the last fiscal year. Nepal’s telecom revenue surged to Rs 45.36 billion from Rs 34.37 billion in fiscal 2009-10.
Six telecom operators had added 4.23 million new subscribers during the last fiscal year. United Telecom Limited (UTL), the country’s third largest telecom operator, saw its revenue fall to Rs 1.16 billion from Rs 1.22 billion of 2009-10 despite a double-digit growth in its subscriber base. STM Telecom’s earnings also declined to Rs 122.6 million from Rs 164.9 million, while Nepal Satellite Telecom earned Rs 75 million in 2010-11, up from last year’s Rs 32.52 million.
Posting an excellent growth, Smart Telecom’s earnings increased to Rs 59.09 million in 2010-11. The figure was at Rs 0.56 million in 2009-10, the first year of its service operation.
The six operators paid a total of Rs 1.81 billion, equivalent to 4 percent of their total income, in royalties to the government in the last fiscal year, according to the NTA. Likewise, the operators have contributed Rs 907.30 million to the Rural Telecommunications Development Fund as required by the telecom law.
Income of telecom operators in the last three fiscal years
Operators 2010-11 2009-10 2008-09
Nepal Telecom Rs 26.40 b Rs 25.05 b Rs 20.48 b
Ncell Rs 17.53 b Rs 7.89 b Rs 5.66 b
UTL Rs 1.16 b Rs 1.22 b Rs 765.14 m
STM Telecom Rs 122.6 m Rs 164.9 m Rs 295.71 m
Nepal Satellite Rs 75 m Rs 32.52 m —
Smart Telecom Rs 59.09 m Rs 0.56 m —
Source: Kantipur
