Kathmandu, March 2:

Nepal Telecommunications Authority (NTA) is all set to issue an operating licence for a new telecom operator with a focus at distributing telephones in rural parts of the country.

It has already issued a letter of intent for the new provider for basic telephony services in rural parts, where other operators have yet to reach, Ananda Raj Khanal, director at the NTA said. “The new rural telecom service licence is aimed at providing basic telephone services in the unserved VDCs,” he said without giving any details.

NTA, the telecom regulator, has recently issued a licence to provide basic telephony services in the Mid and Far Western regions to a Nepal-Pak-Bangladesh joint venture — Nepal Satellite Telecom Pvt Ltd that will start its operations from the Mid-Western and will be allowed to expand its services to other parts of the country later, he said.

Making a presentation on completion of its 10 years, he said that the number of various telecommunication service providers has increased significantly over the past decade.

The number of basic telecom service providers currently stands at four; two cellular

mobile operators, 35 internet service providers (ISP), seven VSAT network providers, 110 VSAT service users, one video conferencing, three GMPCS, one each in rural telecom

service and local data network and eight limited mobility service providers.

According to NTA, the total number of various telecom

service users including basic telephone, cellular mobile, wireless in local loop and GMPCS satellite phones, has already crossed 2.72 million as of October 17, 2007.

“The number of Internet users stands at 67,419. “The growth trend has been overwhelming, as tele-density or penetration rate has gone up to 10.13 per cent from a mere 0.8 per cent, 10 years ago,” Khanal said.

Although the growth in number and volume is quite satisfactory, he expressed that the increasing gap between rural and urban areas and deteriorating quality of service have often hurt the consumers.

“Despite repeated request and directives, the operators, particularly the state-owned cellular mobile phone provider has yet to enhance its quality of services,” he added.

In the new development front, he informed that the licences for three operators to start internet telephone services have been already approved, while a taskforce has been set up for the effective mobilisation of the Rural Telecom Development Fund. The fund has over Rs 750 million unutilised for several years.