The government is working out formulate a merger and acquisition policy, allowing telecom companies to merge. The line ministry of the telecom sector, the Ministry of Information and Communications (MoIC) has said that the policy will come into effect within three months.
MoIC, unveiling its annual plan for the current fiscal year 2017/18 recently, said, “With objective to provide quality service by creating healthy competition environment in telecommunications sector, merger and acquisition related regulation will be taken approval and implemented within three months for a provision that allows operators provide service by merging with each other.”
Telecom regulator—Nepal Telecommunications Authority (NTA) — has prepared a draft of the merger and acquisition guideline, incorporating a provision to allow the telecom companies merger with each other or a telecom firm to acquire another. The policy targets to encourage telecom firms to merge and reduce the number of telecom firms operating in the country.
Currently, there are six telecom companies—Ncell, Nepal Telecom, Smart Telecom, United Telecom Limited, Nepal Satellite Telecom and STM Sanchar—are into operation. Among them, Ncell and Nepal Telecom are two big operators.
Below are the telecommunications related points incorporated in the action plan of MoIC for the current fiscal year 2017/18;
- Works to start within three months to prepare Information Super Highway by laying optical fiber in national highway and roads that connect district headquarters within two years and to fiber along with the Mid-Hill Highway.
- Works will be started by mid-September 2017 to extend internet service to municipalities, rural municipalities, ward offices, school (higher secondary level) and healthcare centers of 11 most affected districts from the earthquake except Kathmandu Valley. Under this, free internet facility will be provided in 23 municipalities and 283 ward offices under them, 85 rural municipalities and their 663 ward offices, 525 healthcare service centers and 826 higher secondary schools for two years.
- Internet service will be extended to municipalities, rural municipalities and ward offices, schools (higher secondary level) and 1110 locations of health care centers of eight districts—Rolpa, Rukum, Jajarkot, Kalikot, Dolpa, Jumla, Humla and Mugu—including that of Karnali. In these places, works have been initiated to start the installation of necessary equipment after mid-September 2017 and complete by mid-September 2018.
- Internet service will be extended through the optical fiber in 1205 locations of municipalities, rural municipalities and ward offices, schools (high secondary level) and healthcare centers of eight districts of Siraha, Saptari, Dhanusha, Mahottari, Sarlahi, Rautahat, Bara and Parsa of the Province No. 2. Works have been initiated to start equipment installation from Mangshir 2074 (Mid-November to Mid-December 2017) and complete by Kartik 2075 (Mid-November 2018).
- Nepal Telecom’s service will be expanded in Bachu and Bichhya of Bara District, where communications service has not reached as of now, within three months.
- Free Wi-Fi service (for a fixed time) will be provided within three months in Padma Kanya Campus under the Tribhuwan University for two years.
- With an objective to provide quality service by creating healthy competition environment in the telecommunications sector, merger and acquisition related regulation will be taken approval and implemented within three months for a provision that allows operators provide service by merging with each other.
- To discourage dual investments being made in the telecommunications sector and reduce telecommunication equipment imports, infrastructure sharing regulation will be formulated within a month to establish an independent infrastructure development company.
- In a bid to cover innovative technology evolving in the telecommunications sector and their use, diversify telecommunications service, expand and regulate, and make the service easily available and reliable, a draft of the Telecommunication Act 1997 will be prepared within three months by making time relevant changes.
- Free Wi-Fi service will be made available within few months in the premises of the Ministry of Communications and Information and Media Village located in Sinamangal where journalists frequently visit and as they have been using the internet more.
- Considering the contribution and needs of the journalists for the development of the nation, a provision will be introduced to provide 60% discount to journalists who use ADSL.
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