NT switching to IP-based landline service within three years

KATHMANDU, July 16:

Nepal Telecom (NT) will start replacing all its Public Switched Telephone Network (PSTN) to Internet Protocol (IP)-based PSTN service from the fiscal year 2014/15 to provide modern telecommunication service to its subscribers and increase fixed line subscribers.

At present, NT has 650,000 fixed line subscribers. The state-owned telecom operator plans to provide the new service within three years. With the launch of the new service, it aims to increase the number of fixed line subscribers to 1 million.

Under IP-based PSTN service, users will get voice, high speed data and cable television all through a single cable.

NT´s revenue from land line has been decreasing in recent years. Currently, the average revenue per user (ARPU) of land line stands at Rs 450 per line per month.

Buddhi Prasad Acharya, officiating managing director of NT, said the new service is aimed at increasing NT´s subscriber base as well as revenue.

NT is inviting global tender within a month to replace existing fixed line throughout the country with the new IP-based service.

“The tenure of the vendor which has been providing service to us has ended. And it has notified to us that it won´t be able to provide service from 2015,” Acharya said, adding, “As the switches are old and are in need of replacement, we felt it is the right time to migrate to the new technology.”

According to Acharya, it will take three years to replace existing PSTN network with the IP-based network.

Once the fixed line is switched to IP-based PSTN service, NT officials say they will be able to provide data speed of up to 20 Mpbs.

NT officials say they would work on the price of data and cable TV service once the tender is opened. To provide cable TV service, NT is preparing to enter into a partnership with cable service providers as it does not have the license to provide cable TV service.

“Once the IP-based PSTN service begins, our subscribers do not have to go through the ordeal of taking service from different operators for telephone, Internet and cable TV service,” Acharya said, adding, “Also Internet cost of individuals will decrease as Internet can be shared and used in different devices.”

With mobile phone becoming increasingly popular, many people do not prefer landline these days. But NT officials are hopeful that launch of IP-based PSTN service will change the scenario. “As the new service provides telephone, Internet and cable TV service in a single package, we are hopeful that people will be interested to get fixed lines in their homes,” added Acharya.

Source: Republica