Friday, April 25, 2014

Mobile Penetration reaches 76.8% and Internet Penetration reaches 30.70%

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The monthly data collected till the date of February, 2014 released by NTA shows an increase of 0.96% in telephone users in Nepal compared to the figure of January 2014. Telephone users have increased from 85.86% to 86.82%. The increment is due to 0.87 percent increase in mobile users and 0.09 percent increase in other telephone service users.

However, is this assumption real that the telephone is reaching out to the population who didn't have access to the service earlier? Or could it be due to the unreliability causes that people started switching and using dual phone services at the same time? So, this data cannot be completely accurate in terms of reaching out to the new users that we are talking about here. Somehow, the increment might contain a lot of new users. But it might also contain the users who are using more than one telephone services at a time.

No changes have been seen in the market shares of the telecom companies. NCell has 48% and NT has 44% of market shares. On the other hand, UTL and Smart Tel have 3% and 4% respectively.There has also been an increase of 0.92% in the internet penetration in Nepal from 29.78% on January 2014 to 30.70% as per February 2014. GPRS still leads the users’ choice of internet service with 7,681,392 users. NT’s CDMA comes second with 235,838 users. WiMax service from NT has total of 7,446 users. Previously, it had 6,790 users. NT leads with 50% of the entire market share in internet, while Ncell has 48%. UTL and other ISPs have 1% of market shares each.

If we look at the recent data of 5 months, the mobile penetration has increased by 2.96% and internet users have been increased by 2.78% in Nepal. With the increase in the mobile penetration, there is an increase in utility of SMS services. This can create huge market not only for SMS service providers, but also for the new mobile marketing businesses.

The mobile penetration is increasing at a decreasing rate. The penetration of communication technologies is getting stronger in Nepal. With the introduction of new operators and service providers, there is a fierce competition in the market. However, Ncell still stands as the most popular brand because of the reliability of the service among its customers. With this level of increment in the technological market, there is a better chance for customers to benefit from price wars between the service providers. If price is the context, NT can be considered as a reliable brand for many customers in comparison to Ncell.

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