Nepal Telecom profit growth rate slows down
KATHMANDU:
Nepal Telecom is fast loosing its ground as its profit growth has been shrinking every year.
“The growth rate of Nepal Telecom’s profit has limited to 2.96 per cent in the fiscal year 2010-11,” NT’s managing director Vishwanath Goel, informed in a press meet organised here in capital today.
Though the company succeed to expand its consumer base by 24 per cent, its profit rate could not match the rising customer base, he said, attributing reduced tariff of various services to slower profit growth rate.
Due to cut-throat competition among telecom service providers, he said that NT will not revise and reduce its current tariff in the current fiscal year.
Nepal Telecom contributed Rs 17.49 billion as revenue to the government coffer during the fiscal year 2010-11, he added. “Of total, it paid Rs 5.48 billion dividend, Rs 6.45 billion Value Added Tax and telecommunication service charge, Rs 1.54 billion income revenue and Rs 1.23 billion royalty to the government, Goel said, adding that the company’s consumer base has expanded to 67,89,000 till the end of fiscal year 2010-11.
Goel also accepted that the Quality of Service of Nepal Telecom has been affected due to outdated and old technology. “The company has failed to deliver the services in line with desired quality due to technological hindrances,” he said, adding that the company will be focused on Quality of Service in the current fiscal year by replacing the outdated technologies.
The company is also planning Convergent Real Time Billing and Customer Support to launch convergent billing system, he informed, saying that the company is also launching Costumer Contact Centre to provide facility to the consumers.
He further informed that the company is bringing in the new GSM technology with the capacity of 10,000,000 line GSM service having facilities of second generation (2G), third generation (3G) and LTE, according to him.
On the occasion, he also informed that the company is mulling to expand broadband data service with the capacity of 200,000 line based on Wi-Max technology. “It is expected to expand broadband data service into 3,915 village development committees (VDCs) by the end of 2012,” he said.
The net profit of NT has reached to 10.77 billion by the end of fiscal year 2010-11 compared to Rs 10.17 billion a fiscal year ago, NT said.
\"Nepal Telecom has been demanding to bring the strategic partner soon to enhance competency as its profit growth rate has been decreasing, Goel said, adding that the delay from the government has hit its plan of bringing new strategic partner.
The company is optimist that the government will take the issue seriously and allow the company to bring new strategic partner, he said.
The government holds a total of 91.40 per cent share of Nepal Telecom, whereas Citizen Investment Trust has 0.3 per cent share, general public has 3.83 per cent and its employees have 4.65 per cent share in the company as of the end of last fiscal year, according to the company.
Shareholders to get less dividend
Lower profit growth means the share holders might get less dividend of Nepal Telecom. Though the company had distributed 40 per cent cash dividend in the last fiscal year, it seems the NT could not be able to give more dividend this time, NT source said. However, NT spokesperson Surendra Prasad Thike said that it is too early to predict whether dividend will be reduced or not. “It is up to the government and AGM to decide the dividend,” he added.
Source: THT
Nepal Telecom is fast loosing its ground as its profit growth has been shrinking every year.
“The growth rate of Nepal Telecom’s profit has limited to 2.96 per cent in the fiscal year 2010-11,” NT’s managing director Vishwanath Goel, informed in a press meet organised here in capital today.
Though the company succeed to expand its consumer base by 24 per cent, its profit rate could not match the rising customer base, he said, attributing reduced tariff of various services to slower profit growth rate.
Due to cut-throat competition among telecom service providers, he said that NT will not revise and reduce its current tariff in the current fiscal year.
Nepal Telecom contributed Rs 17.49 billion as revenue to the government coffer during the fiscal year 2010-11, he added. “Of total, it paid Rs 5.48 billion dividend, Rs 6.45 billion Value Added Tax and telecommunication service charge, Rs 1.54 billion income revenue and Rs 1.23 billion royalty to the government, Goel said, adding that the company’s consumer base has expanded to 67,89,000 till the end of fiscal year 2010-11.
Goel also accepted that the Quality of Service of Nepal Telecom has been affected due to outdated and old technology. “The company has failed to deliver the services in line with desired quality due to technological hindrances,” he said, adding that the company will be focused on Quality of Service in the current fiscal year by replacing the outdated technologies.
The company is also planning Convergent Real Time Billing and Customer Support to launch convergent billing system, he informed, saying that the company is also launching Costumer Contact Centre to provide facility to the consumers.
He further informed that the company is bringing in the new GSM technology with the capacity of 10,000,000 line GSM service having facilities of second generation (2G), third generation (3G) and LTE, according to him.
On the occasion, he also informed that the company is mulling to expand broadband data service with the capacity of 200,000 line based on Wi-Max technology. “It is expected to expand broadband data service into 3,915 village development committees (VDCs) by the end of 2012,” he said.
The net profit of NT has reached to 10.77 billion by the end of fiscal year 2010-11 compared to Rs 10.17 billion a fiscal year ago, NT said.
\"Nepal Telecom has been demanding to bring the strategic partner soon to enhance competency as its profit growth rate has been decreasing, Goel said, adding that the delay from the government has hit its plan of bringing new strategic partner.
The company is optimist that the government will take the issue seriously and allow the company to bring new strategic partner, he said.
The government holds a total of 91.40 per cent share of Nepal Telecom, whereas Citizen Investment Trust has 0.3 per cent share, general public has 3.83 per cent and its employees have 4.65 per cent share in the company as of the end of last fiscal year, according to the company.
Shareholders to get less dividend
Lower profit growth means the share holders might get less dividend of Nepal Telecom. Though the company had distributed 40 per cent cash dividend in the last fiscal year, it seems the NT could not be able to give more dividend this time, NT source said. However, NT spokesperson Surendra Prasad Thike said that it is too early to predict whether dividend will be reduced or not. “It is up to the government and AGM to decide the dividend,” he added.
Source: THT
