Rising competition‚ cost hurt Nepal Telecom´s profit growth
KATHMANDU, May 3:
Apart from political bickering, increasing competition among telecom service providers, operational cost and delay in decision making process hurt profit growth of Nepal Telecom,” according to secretary at Ministry of Information and Communication and chairman of the company Sushil Ghimire.
The public enterprises have to follow Public Procurement Act that delays the procurement, he said, addressing today third annual general meeting of Nepal Telecom that has seen only six per cent growth in its profit last fiscal year 2009-10 compared to a fiscal year ago. “Nepal Telecom’s profit growth has been decreasing every successive year,” he added. “It is not an encouraging sign at all.”
The company is expecting profit growth to increase by 12.26 this fiscal year, however, the shareholders are not much optimistic about it.
“It cannot make profit only from voice services in the days to come,” Ghimire said, adding that the telecom is fast loosing its ground due to competition.
“To survive the competition, Nepal Telecom has floated an idea of investment diversification,” he added. Nepal Telecom is registering a subsidiary company to make it easier for investment in hydropower sector, he said, adding that it is investing Rs 600 million worth share and providing Rs 6 billion worth loan for Upper Tamakoshi hydropower.
“Nepal Telecom is also investing on Trishuli 3B project, he said.
Lately the telecom service provider is searching for the strategic partner. “But the plan is gathering dust at the Finance Ministry,” Ghimire said, suggesting the staff to develop corporate culture.
Nepal Telecom’s operational cost has increased significantly — Rs 1.85 billion on staff, Rs 2.07 billion on maintenance and Rs 1.04 billion on administrative cost — during the fiscal year 2009-10, according to its audit report.
Interestingly, it has decided to provide both bonus and incentives to its staff.
Source: THT
Apart from political bickering, increasing competition among telecom service providers, operational cost and delay in decision making process hurt profit growth of Nepal Telecom,” according to secretary at Ministry of Information and Communication and chairman of the company Sushil Ghimire.
The public enterprises have to follow Public Procurement Act that delays the procurement, he said, addressing today third annual general meeting of Nepal Telecom that has seen only six per cent growth in its profit last fiscal year 2009-10 compared to a fiscal year ago. “Nepal Telecom’s profit growth has been decreasing every successive year,” he added. “It is not an encouraging sign at all.”
The company is expecting profit growth to increase by 12.26 this fiscal year, however, the shareholders are not much optimistic about it.
“It cannot make profit only from voice services in the days to come,” Ghimire said, adding that the telecom is fast loosing its ground due to competition.
“To survive the competition, Nepal Telecom has floated an idea of investment diversification,” he added. Nepal Telecom is registering a subsidiary company to make it easier for investment in hydropower sector, he said, adding that it is investing Rs 600 million worth share and providing Rs 6 billion worth loan for Upper Tamakoshi hydropower.
“Nepal Telecom is also investing on Trishuli 3B project, he said.
Lately the telecom service provider is searching for the strategic partner. “But the plan is gathering dust at the Finance Ministry,” Ghimire said, suggesting the staff to develop corporate culture.
Nepal Telecom’s operational cost has increased significantly — Rs 1.85 billion on staff, Rs 2.07 billion on maintenance and Rs 1.04 billion on administrative cost — during the fiscal year 2009-10, according to its audit report.
Interestingly, it has decided to provide both bonus and incentives to its staff.
Source: THT
