Rural Telecom Development Fund swells to Rs 5.63b
KATHMANDU, OCT 14 -
Telecom operators’ contribution to the Rural Telecommunication Development Fund (RTDF) had increased remarkably. With over 95 percent contribution from telecom companies, the government now has Rs 5.63 billion in the fund.
As per the government provision, all licencees — telecom operators, internet service providers and satellite phone service providers — have to contribute 2 percent of their total income to the fund annually. The fund is established for development, expansion and operation of telecom services to rural areas.
“A total of 920.16 million has been collected in the fund as of the last fiscal year and the size is on the rise,” said Purushottam Khanal, director at the Nepal Telecommunications Authority (NTA). He said they were expecting contributions of around Rs 1.25 billion in the current fiscal year, especially due to increasing income of GSM mobile service providers.
As of last fiscal year, the number of telecom service subscribers increased to 17.28 million and the penetration rate touched 64.91 percent. Of the total subscribers, 57.60 percent are mobile users. A study carried out by NTA last year in four major cities — Kathmandu, Pokhara, Bitatnagar and Nepalgunj — had said mobile users spend normally Rs 400-Rs 1,000 a month.
The amount contributed by the licencees in the fund in last fiscal year is an increase by 31.76 percent compared to the previous year’s contribution, as per the NTA Annual Report 2012-13. A total of Rs 698.35 million was added to the fund in 2010-11, with telecom operators’ contribution accounting for over 95.
From the fund, NTA has provided Rs 265.60 million to Nepal Telecom as of last fiscal year for extending telecom service in rural areas. Similarly, Rs 2.69 million was given to Subisu Cable Net for setting up five telecentres or Common Service Centres in five village development committees — Gilung, Baglungpani, Khudi, Bhorletar and Chakrathirtha — Lamjung district.
NTA has long been planning to utilise the fund’s resources for establishing optical fibre link in all 75 districts to provide broadband internet and other telecom services at affordable rates.
The authority says they will have to lay 4,928km optical fibre by avoiding the fibre connection already established by Nepal Telecom for nationwide fibre connection and develop the network as an alternative superhighway.
Likewise, ‘Connect a School’, ‘Connect a Community’ and telecom tower sharing are also the areas where the government plans to use the RTDF money.
Source: The Kathmandu Post
