43

Business Development Plan

of
Net Bolt
(A Wireless Broadband Data Service of Nepal Telecom) tedMotor ndai has eight different variants inNepal in upy 49% of the market share of the Nepal. e Nepal as far as teh ir op
Submitted to: Submitted by:
Ace Institute of ana!ement Anant Pra"as# alli"
In partial ful$llment of %BA %BA& 3
rd
Semester
Acknowledgement
This comprehensive Business Development Plan of a Net Bolt a !ireless "road"and data
service of Nepal Telecom is the partial fulfillment of eMB# of #ce $nstitute of Management
affiliated to Pokhara %niversity.
$ e&tend my sincere gratitude to all our course instructors of #$M and specially Mr. #shish
Ti!ari Mr. Bishal 'hrestha and Mr. Pradeep (a)opadhyay our course instructors*facilitators
for their valua"le guidance and advice on Business Development Plan !hich !ill have a great
importance in our professional life. $ !ould also like to thank them for giving me this
opportunity to apply the concept of "usiness development plan for a ne! "usiness and its
marketing operation financial as !ell as +( plan of ,ireless Broad"and Data 'ervice under
the "rand name of -Net Bolt.. $t has helped me to "e familiar !ith the general marketing
practices applied in real life scenario in Nepal as !ell as give me confidence ho! a ne!
"usiness plan "e done "efore starting the "usiness.
$ !ould also like to take this opportunity to e&press my special thanks to Mr. 'urendra Prasad
Thike DMD Business Department Mr. 'hiv Bhusan /al DMD $T Department and Mr.
Narendra Mahar)an 'r. 0ngineer Business Department of Nepal Telecom for their valua"le
contri"ution on providing me the relevant information.
$ !ould also like to give my sincere thank to all the classmates !ho helped me "y providing
their valua"le input and suggestions for completing BDP.
Thanking you all
'incerely
#nant Prakash Mallik
1anuary 2342
43
Table of Contents
1. EXECUTIVE SUMMARY..............................................................................5
2. INTRODUCTION........................................................................................7
. VISION! MISSION AND O"#ECTIVES............................................................$
3'( )ISI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' +
3', ISSI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' +
3'3 *B-%.TI)%'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' +
%. "USINESS DESCRI&TION...........................................................................'
4'( /%N%0A1'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 2
4', P0*-%.T S3A04''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 2
4'3 P0*D3.T D%S.0IPTI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''(,
5. MAR(ET RESEARC) AND ANA*YSIS.........................................................15
5'( 0%S%A0.6 %T6*D*1*/4'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''(5
5', *)%0A11 A07%T''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' (5
5'3 SIT3ATI*N ANA14SIS''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' (8
5'4 A07%T T0%ND''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' (8
5'5 B./ A07%T /0*WT69S6A0% ANA14SIS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''(2
5'8 /*)%0N%NT P*1I.4'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''(2
5': .*P%TIT*0 ANA14SIS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' (2
+. ENVIRONMENTA* ANA*YSIS....................................................................21
8'( A.0* %N)I0*N%NTA1 ANA14SIS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',(
8', SW*T ANA14SIS''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ,,
8'3 .*P%TITI)% ;A.T*0S'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ,4
7. O&ERATIONA* &*AN...............................................................................25
:'( S%0)I.% D%SI/N AND SP%.I;I.ATI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',5
:', <3A1IT4 ANA/%%NT''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ,8
:'3 IN)%NT*04 ANA/%%NT'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',:
:'4 P0*-%.T IP1%%NTATI*N S.6%D31%''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',:
$. MAR(ETIN, STRATE,IES AND MAR(ETIN, &*AN.....................................2$
+'( A07%T ;*0%.AST''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' ,+
+', STP *; N%T B*1T S%0)I.%'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',+
+'3 A07%TIN/ ST0AT%/I%S'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''',2
+'4 A07%TIN/ B3D/%T'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''33
+'5 7%4S T* S3..%SS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 33
+'8 A07%TIN/ .*NT0*1 %.6ANISS'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''33
'. OR,ANI-ATION AND MANA,EMENT &*AN................................................
2'( *0/ANI=ATI*N ST03.T30%''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''34
2', ANA/%%NT T%A'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''35
2'3 T%A %B%0S''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 35
2'4 STA;; .*P*SITI*N'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''35
1.. )UMAN RESOURCE &O*ICIES................................................................+
43
(>'( 0%.03IT%NT AND S%1%.TI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''38
(>', D%)%1*P%NT AND T0AININ/'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3:
(>'3 0%WA0D AND *TI)ATI*N''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3:
(>'4 60 ASS%SS%NT *; NT'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3:
(>'5 .*ND3.T AND .APABI1IT4'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''3+
11. /INANCIA* &*AN AND ANA*YSIS...........................................................$
(('( .APITA1 0%<3I0%%NT ;*0%.AST'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''32
((', 0%)%N3% ;*0%.AST''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 32
(('4 .AS6 B3D/%T ()ID% APP%NDI? (()''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4>
(('5 0%TAIN%D %A0NIN/ STAT%%NT ()ID% APP%NDI? (>')'''''''''''''''''''''''''''''''''''''''''''''''''4(
(('8 BA1AN.% S6%%T ()ID% APP%NDI? (,)''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4(
((': P0*;IT A0/IN 0ATI*'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''' 4(
(('+ 0%T30N *N ASS%TS''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4,
(('2 ;3ND ANA/%%NT'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''4,
12. CRITICA* RIS(S AND CONTIN,ENCIES..................................................%2
1. CONC*USION......................................................................................%
Appendix
#ppendi& 45 Market 6ro!th and 7ompetitor #nalysis
#ppendi& 25 7apacity Planning of Net Bolt 'ervice
#ppendi& 85 Tariff (ate #nalysis
#ppendi& 45 $ncome "y 'u"scription9Month !ise
#ppendi& :5 $ncome "y selling device
#ppendi& ;.a5 0&penditure
#ppendi& ;."5 Pre9<perating 0&penses
#ppendi& =5 >i&ed #ssets
#ppendi& ?5 Depreciation
#ppendi& 95 $ncome and e&penditure
#ppendi& 435 (etained earning
#ppendi& 445 7ash >lo!
#ppendi& 425 Balance 'heet
#ppendi& 485 0@uipment cost
#ppendi& 445 $T DepartmentAs structure
#ppendi& 4:5 $T%As M$' (eport
#ppendi& 4;5 Buality of 'ervice Benchmark
#ppendi& 4=5 Nepal TelecomAs #nnual (eport
43
1. Executive Summary
This is era of technology and Nepal is not the e&ception. Nepal has moved three places up
from the ranking of 48= in 233? to 484 in 2343 among 4:2 countries in the $nformation and
7ommunication Development $nde& C$D$D as pu"lished "y $nternational Telecommunication
%nion C$T%D. Nepal has e&perienced unprecedented mo"ile gro!th E has the potential to
repeat the same for "road"and data service. $T% notes in the release that !ireless "road"and
$nternet access remains the strongest gro!th sector in developing countries !ith mo"ile
"road"and gro!ing "y 4;3% "et!een 2339 and 2343. (ecent Nepal Telecom #uthority
CNT#DFs M$' report also sho!s the overall market gro!th of internet*data service is gro!ing
up more than dou"le every year in Nepal e.g. in 2339 2343 and 2344 it !as 2.:% :.?% and
44.4% respectively. Thus there is a tremendous gro!th in this segment of telecom "usiness in
Nepal.
$n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/
CNepal Telecom NTD %T/ N70// and $'Ps. #s of 44 Novem"er 2344 though there are 29 $'Ps
altogether in operation thorough out Nepal "ut their market share is )ust 4.;% C;4:32D. The ma)or
su"scri"er holder $'PFs are ,orldlinkC494:3D BroadlinkC4?;28D MercantileC9:3:D and 'u"isu
C;;:2D. 'imilarly %T/ also has )ust 2% market share and hence the ma)or data su"scri"ers are !ith
Nepal Telecom and N70// C'NP/D. 'imilarly it is found that the ma)or data*internet service medium
is !ireless Cappro&. 9;%D. Though there is a niche market for data service through ca"le modem and
optical fi"er "ut the market is very limited. 'o $ have focused on !ireless data service in this "usiness
plan. #nother region to select this "usiness plan is as per the B76 matri& analysis at present it is seen
that the ma)or data "usiness of NT is #D'/ service C7ash co!D. But "efore it goes to Dog state it !ill
"e very !ise to introduce anther ne! service like it !hich is !ireless "road"and data service
C,ima&*Net BoltD !ith more coverage9less time to deploy E more economic.
This "usiness plan is focusing on more advanced and efficient !ireless technology
called ,iM#H !ith "rand name given as et !olt". ,iMa& C,orld!ide $nteropera"ility
for Micro!ave #ccessD "road"and !ireless data services can give up to =: M"*s throughput
C"ased on 83 M+G of spectrum availa"ilityD. ,iMa& is already a matured standardiGed
technology as compared to /T0C/ong Term 0volutionD !hich can give up to 433 M"ps
throughput.
+ere is the description of this pro)ect in summary5
a# !rand ame$ et !olt
b# Tec%nology used$ &i'ax (&orldwide )nteroperability for 'icrowave Access#
wit% )EEE *+,.1-e standard (wit% mobility#
c# Spectrum (fre.uency#$ ,./ 012 !and (,./+ to ,.// i.e. /+ '12 already licensed to
T#
d# 'ax bandwidt% availability to a customer$ 34 'bps
43
e# !usiness 5lan$ / 5ackages to customer vi2 Silver$ ,4- 6bps (40!7mont%#8
0old$ 41, 6bps (1+0!7mont%# and 9iamond$ ,'bps (4+0!7mont%#
f# C5E (customer premises e.uipment# c%oice$ / types vi2. :utdoor8 )ndoor and
;S! < opened to t%e local market (for more c%oice#
g# 'ont%ly cost to customer$ Silver$ =s /++7mont%8 0old$ =s 4++7mont% and
9iamond$ =s 14++7mont% (w7o Tax#. Subscription c%arge>?ree.
%# C5E cost$ :utdoor>=s @8+++8 )ndoor>=s ,4++ and ;S!>=s 184++
i# 5roAect 9uration$ 4 years
A# Service launc% time$ Approx B mont%s
k# Subscriber Capacity$ 1++8+++ subscribers
l# Service area$ 6at%mandu valley8 5ok%ara valley8 C%itawan8 !iratnagar8
!irgunA8 !%aira%awa( including !utwal# and epalgunA.
,ith the companyFs vision to remain a market leader in $7T sector of the country !hile also
e&tending relia"le and cost effective services different marketing mi& has "een adopted in this
"usiness plan and the follo!ing competitive advantage has "een sought5

Cost leaders%ip
'ore speed < Cess interference (1igh Buality of 'erviceD
Ease of use
'ince NT is having its o!n infrastructure like to!er "uilding and +( resources those unused
resources !ill "e utiliGed for this pro)ect. Thus e&penditure has "een minimiGed. >or this pro)ect total
capital re@uirement is N(s. 93333333. This !ill "e invested "y the company itself from its reserve E
surplus fund of (s 82449:9942=. C"ased on audited "alance sheet of NT on #shadh 82 23;=D.
>rom the financial analysis it is seen that this pro)ect is very much feasi"le. During the 4
st
year itself it gives Net profit of =s 4*8+4*81*/. 'urplus amounts are transferred to head office
account for management decision to reinvest Ce.g. in pipeline pro)ects like 4crore 6'M
pro)et 2: /akh $P 7DM# Pro)ect etc.D
Nepal Telecom has gone a long !ay to understand the market it is trying to serveI good
solutions have "een identified. The company is very positive that it !ill "e recogniGed "y its
customers as a "rand name for high @uality "road"and internet service at the most
competitive price. >inally the company !ill contri"ute immensely in economic E $7T
gro!th of the nation "y promoting the use of fast internet.
43
,. )ntroduction
#ccording to definition "y $T% C$nternational Telecom %nionD and NT# CNepal Telecom
#uthorityD a Broadband Internet subscriber is someone !ho pays for high9speed access to
the pu"lic $nternet Ca T7P*$P connectionD. +igh speed access is defined as "eing e@ual to or
greater than ,4- kbit7s as the sum of the capacity in "oth directions. No! a day almost in
every sector of life $nternet is used !idely and the demand is gro!ing rapidly. $n Nepal
presently there are 8.= million internet su"scri"ers out of !hich 8.; million C9;%D are
!ireless internet su"scri"ers Csource !!!.nta.gov.npD.
/ike the international trend NepalFs data service market is also gro!ing rapidly. #ccording to
M$' report of NT# as of Jartik 23;? C44 Novem"er 2344D the internet penetration rate of Nepal is
44.39%. /ast year it !as )ust :.=9% during the same month i.e. the internet penetration rate has "een
more than dou"led )ust !ithin one year of time.
$n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/ CNepal
Telecom NTD %T/ N70// and $'Ps. #s of 44 Novem"er 2344 though there are 29 $'Ps altogether
in operation thorough out Nepal "ut their market share is )ust 4.;% C;4:32D. The ma)or su"scri"er
holder $'PFs are ,orldlinkC494:3D BroadlinkC4?;28D MercantileC9:3:D and 'u"isu C;;:2D.
'imilarly %T/ also has )ust 2% market share and hence the ma)or data su"scri"ers are !ith Nepal
Telecom and N70// C'NP/D. 'imilarly it is found that the ma)or data*internet service medium is
!ireless Cappro&. 9;%D. Though there is a niche market for data service through ca"le modem and
optical fi"er "ut the market is very limited. 'o $ have focused on !ireless data service in this "usiness
plan.
The present scenario of Data*$nternet market in Nepal is sho!n "elo!5
C'ource5 !!.nta.gov.npD
%nder this "usiness plan our target customers are people !ho are migrating to smart phones
people*office having laptop or P7 of different category. $t is pro)ected that "y 2348 #ndroid <.'.
shall "e the dominating operating system in Mo"ile market and !ith 'martphone "ecoming cheaper
more and more people in Nepal !ill "e having 'martphone in coming years. $n Nepal as internet is
accessed predominantly through mo"ile devices than from any other means and "ecause high speed
43
internet compliments 'martphone there !ill "e higher demand for !ireless data services C!i9fiD
!ithin 29 8 years. 'imilar is the case for computers. %ser siGe of 6P(' compared to "road"and
validates the need of a relia"le "road"and service in Nepal. Nepal is a mountainous country
and considering the cost of laying fi"er to home ,iM#H can greatly contri"ute to
"road"and penetration. (ecently NT# CNepal Telecom #uthorityD has given fre@uency license
to NT for ,iMa& operation. 'o ,iM#H C,orld!ide $nteropera"ility for Micr!oave
#ccessD a highly efficient technology has "een chosen for this pro)ect and the "rand name
has "een given as -et !olt..
This pro)ect Business Development Plan on -Net Bolt. 'ervice of Nepal Telecom has "een
prepared to learn a"out ho! "usiness development plans are developed and implemented in
real life scenario. By applying different management tools and techni@ues !hich !e learnt
during our 0MB# course $ tried to analyGe the Business development plan for the upcoming
NetBolt service of Nepal TelecomFs Broad"and ,ireless Data 'ervice a much gro!ing
market in Nepal as a u"i@uitous and any!here9any time to connect type of data*internet
service.
/. Dision8 'ission and :bAectives
/.1 Dision
-Kision of Nepal Telecom is to remain a market leader in $nformation and 7ommunication
Technology C$7TD sector of the country !hile also e&tending relia"le and cost effective
services to all..

The deployment of !ireless "road"and data services all over Nepal shall provide leverage to
$7T sector and shall provide many opportunities to people of Nepal. #s par !ith our
governmentFs vision as -mo"ile on every"odyFs hand and internet in every"odyFs home. $
think NT can reflect this thing also in itFs vision92348.
/., 'ission
LNepal Telecom as a progressive customer spirited and consumer responsive 0ntity is
committed to provide nation9!ide relia"le telecommunication service to serve as an impetus
to the social political and economic development of the 7ountryL.
/./ :bAective
To provide ,ireless Broad"and #ccess using ,iMa& $000 ?32.4;e or higher technology
in2.83M2.43 6+G "and to the ma)or cities like Jathmandu valley Pokhara Biratnagar
Birgun) Bhairaha!a Nepalgun) and Dhangadhi !ith minimum data rate of 2:; k"ps
do!nlink*uplink and Ma& data throughput of =: M"ps. $n second phase the net!ork is
envisaged to "e deployed in all KD7 and municipalities of Nepal.
To provide @uad9play services of voice data video and mo"ility !ith high relia"ility to
433333 su"scri"ers !ithin a year.
43
@. !usiness 9escription
@.1 0eneral
Nepal Telecom is a leading incum"ent telecommunications service provider in Nepal
and has "een providing !ireless data services like 86 6P(' and 7DM# 4H*0K9D< K'#T
services. The convenience of using internet services through mo"ile phone has gained large
popularity !ith su"scri"ers of !ireless data services crossing a figure of 8.; Million !ithin
this t!o and half years. This has esta"lished ,ireless data services as a distinguished service
rather than a value added service. This "usiness plan is focusing on more advanced and
efficient !ireless data services viG. ,iM#H !ith "rand name given as -Net Bolt..
,iMa& C,orld!ide $nteropera"ility for Micro!ave #ccessD "road"and !ireless data
services can give up to =: M"*s throughput C"ased on 83 M+G of spectrum availa"ilityD.
,iMa& is already a matured standardiGed technology as compared to /T0C/ong Term
0volutionD !hich can give up to 433 M"ps throughput.
@., 5roAect Summary
+ere is the description of this pro)ect in summary5
a# !rand ame$ et !olt
b# Tec%nology used$ &i'ax (&orldwide )nteroperability for 'icrowave Access#
wit% )EEE *+,.1-e standard (wit% mobility#
c# Spectrum (fre.uency#$ ,./ 012 !and (,./+ to ,.// i.e. /+ '12 already licensed to
T#
d# 'ax bandwidt% availability to a customer$ 34 'bps
e# !usiness 5lan$ / 5ackages to customer vi2 Silver$ ,4- 6bps (40!7mont%#8
0old$ 41, 6bps (1+0!7mont%# and 9iamond$ ,'bps (4+0!7mont%#
f# C5E (customer premises e.uipment# c%oice$ / types vi2. :utdoor8 )ndoor and
;S! < opened to t%e local market (for more c%oice#
g# 'ont%ly cost to customer$ Silver$ =s /++7mont%8 0old$ =s 4++7mont% and
9iamond$ =s 14++7mont% (w7o Tax#. Subscription c%arge>?ree.
%# C5E cost$ :utdoor>=s @8+++8 )ndoor>=s ,4++ and ;S!>=s 184++
i# 5roAect 9uration$ 4 years
A# Service launc% time$ Approx B mont%s
k# Subscriber Capacity$ 1++8+++ subscribers
43
l# Service are$ 6at%mandu valley8 5ok%ara valley8 C%itawan8 !iratnagar8
!irgunA8 !%aira%awa( including !utwal# and epalgunA.
m# Typical Coverage illustration$

n# 9imensioning met%odology$
+ere o"serving the market scenario of geometric gro!th rate Cmore than dou"le
gro!th annually9source5 !!!.nta.gov.npD it has "een assumed that to tap 4%
penetration during 4
st
year !ill not "e a pro"lem !ith our premium service Cmore
"and!idth at lo! cost and high @ualityD. >or the 2
nd
year it has "een assumed as
4.:% and in the su"se@uent 8 years it has "een assumed as 2% penetration.
Because a saturation level may "e e&perienced or ane! efficient Technology may
appear in the market. $n order to protect from threat of ne! comers !ith ne!
technologies the e@uipments are chosen such that it can "e upgraded to upcoming
/T0 C!ith 433 M"*s throughputD !ithout changing any hard!are Cavaila"le in the
market !ith soft!are up gradationD. %sing this dimension methodology appro&
433333 potential su"scri"ers are coming in the ne&t : years C432=4?D. The silver
su"scri"er Clo! volume userD gold su"scri"er Cmedium volume userD and
diamond su"scri"er Chigh volume userD has "een assumed as ?3% 4:% and :%
respectively.
43
No! to calculate the num"er of B' CBase 'tation 'erving nodeD re@uired average
contention ration Cshared "and!idthD has "een assumed as 45?. The market trend
is 454; to 4543. +ence it is "etter than others. 'imilarly in order to penetrate in
more service area than other competitors more than re@uired num"er of B' has
"een planned Ce.g. re@uired is =2 "ut planned is 433D "ased on market analysis
CPlease refer to #nne& 2 E DiagramD. 233 ,i9>i #P C#ccess PointsD also have
"een provisioned for u"i@uitous ,i9>i coverage in the service area for the general
,i9>i users C!ithout "uying any 7P0D
To set the tariff first of financial calculation has "een carried out. 'ince NT has its
o!n infrastructures like Building To!er Po!er e@uipments etc. and enough
manpo!er those !ill also "e shared for this pro)ect. 'o investment for those things
is not necessary. No! "ased on market price analysis Cplease refer #ppendi& 8D a
very competitive price has "een set !hich is less than other competitors "ut !ith
more usages "and!idth and more speed Cmore value to customerD.
$n order to give more choices of 7P0 Ccustomer premises e@uipmentsD it has "een
provisioned for )ust 43% for the 4
st
year su"scri"ers during pro)ect launch time.
(est !ill "e opened to the market. # su"scri"er can "uy it from local market and
configure it remotely Cusing <T# over the air provisionD. To give more choices as
per their need three types of 7P0 has "een provisioned viG. <utdoor Cfor remote
site more "and!idthD $ndoorC for more "and!idth '<+< useD and %'B Cfor
normal su"scri"ers !ith P7*Mo"ile setD type. +ere <utdoor $ndoor and %'B
7P0s have "een assumed as 23% 83% and :3% respectively.
The reason to choose ,iMa& is not only due to technical reason "ut also it is a
cost effective solution. +ere is a market research finding !hich sho!s ,iMa& is
more cost effective solution than other means of "road"and data service5
@./ 5roduct description
,iM#H is a last mile "road"and !ireless access CB,#D alternative to ca"le modem service
#D'/*Dialup 04 lease line or other internet service. The systemFs architecture is similar to
43
6'M or 7DM# net!ork i.d. there is a core e@uipment to handle "ase station Cnear the
customers house put on the to!erD "ase station CB'D to provide !ireless "road"and service
to the customer and 7P0*,i>i #P Cto connect !ith su"scri"erFs P7*/aptop Mo"ile setD.
%sing this !ireless service depending on the service providers fre@uency license a su"scri"er
can get more "and!idth for internet*data service for the application of data voice video !ith
mo"ility C@uad playD. >or e&ample in this pro)ect NT has recently got license of 83 M+G
!ith this spectrum it can provide up to =: M"ps at each B' siteFs coverage area. $000
C$nstitute of 0lectrical and 0lectronics 0ngineersD defines all the protocols Cconnectivity
rulesD for this system. NT !ill "ring the latest ?32.4;e C!ith mo"ilityD standardsF e@uipment
under this pro)ect to delight our customer i.e. customer can en)oy roaming of internet service
during their move on the car.
+ere is a net!ork structure of ,iMa& service5
''N 'u"scri"er 'tation*7ustomer premises e@uipment e.g. /aptop Mo"ile etc.
B'N Base 'tation Cmounted on a Pole*To!er near the vicinity of su"scri"ersD
+ere customerFs 7P0*'' are connected to service provider through !ireless
connection to B' "ut B' are connect to a central #'NC#ccess 'ervice Net!orkD
gate!ay through micro!ave radio or optical fi"er or D'/ line. The #'N gate !ay is
connected to the central 7'N C7onnectivity 'ervice Net!orkD (outer. %sually for a
small*medium net!ork #'N gate!ay and 7'N router resides in a same
place*"uilding. The 7'N router is then connected to the e&ternal internet !orld
trough fire!all Cfor net!ork protectionD. Billing system <peration and Maintenance
C<#MD system and other central units are also connected to 7'N router. %sually
there are many B' Cas per coverage and capacity planningD "ut a single #'N gate!ay
and 7'N router.
,iMa& has the potential to impact all forms of telecommunication. Belo! is the
illustrations ho! it !orks and for !hat application it can "e used5
43
+ere are the illustration of the components of a ,iMa& system5
43
&i'ax !ase Station (!S# &i'ax Antenna System
&i'ax C5Es$
<utdoor 7P0 $ndoor 7P0 +andheld 7P0
43
4. 'arket =esearc% and Analysis
Market research analysis !ill help the company to define its target market. $t !ill help to
understand the people !ho might "e interested in "uying the product and the competitors in
the market.
4.1 =esearc% 'et%odology
>or this pro)ect $ have collected materials from Nepal TelecomFs M$' reports*#nnual (eport
Nepal Telecom #uthority CNT#DFs M$' report $T%Fs (eport ma)or competitors like N70//
%T/ E $'PFs like ,orldlink Broadlink Mercantile etcFs !e"siteFs information 7omputer
#ssociation of NepalC7#NDFs !e"site information C!!!.can.org.npD $nternet 'ervice
ProviderFs #ssociation of Nepal C$'P#NDFs !e"site informationC!!!.ispan.net.npD and had
intervie! sessions !ith NTFs "usiness departmentFs DMD and senior staff. $ have also
conducted a small survey of data users of Nepal Telecom.
4., :verall market
Nepal has moved three places up from the ranking of 48= in 233? to 484 in 2343 among 4:2
countries in the $nformation and 7ommunication Development $nde& C$D$D that is pu"lished
"y $nternational Telecommunication %nion
C$T%D. Nepal has e&perienced unprecedented
mo"ile gro!th E has the potential to repeat
the same for "road"and. $T% notes in the
release that !ireless "road"and $nternet
access remains the strongest gro!th sector in
developing countries !ith mo"ile "road"and
gro!ing "y 4;3% "et!een 2339 and 2343.
NT#Fs M$' sho!s the overall market gro!th
of internet*data service is gro!ing up more than
dou"le every year e.g. in 2339 2343 and
2344 it !as 2.:% :.?% and 44.4%
respectively. Thus there is a tremendous
gro!th in this segment of telecom "usiness.
$n Nepal currently there are 8:O $'Ps "ut only :9; $'Ps actively contri"uting to the
"road"and penetration. The technology used are5 dial up #D'/ 7a"le Modem radio link
C!i fiD 6P('0D607DM# 4& 7DM# 4& 0KD< 86 C,7DM#D 04 /eased lines etc. Jey
reasons for lo! penetration are lack of !ire line infrastructure Cstill :3% of the Nepal is
facing issues !ith connectivityD issues related to the cost of laying ca"le infrastructure and
very less investment in infrastructure upgrade. Nepal is a mountainous country and
considering the cost of laying fi"er to home !ireless "road"and data service o"viously can
43
greatly contri"ute to "road"and penetration. %ser siGe of 6P(' compared to "road"and
validates the need of a relia"le "road"and service in Nepal yearly gro!th of #D'/ is a"out
439% !here as for data service including 6P(' is 43=%.
4./ Situation Analysis
Situation analysis of wireless data service at a glance
4. Product /ife 7ycle 'tage 6ro!th stage
2. 6ro!th rate $ncreasing CP433%D
8. Predicta"ility of gro!th potential Potential !ell9defined competition specialiGed to
satisfy needs of specific segments.
4. Product line proliferation >ast proliferation
:. Num"er of competitors Many competitors e&ists "ut Ma)or 4
;. Market share distri"ution %neven pattern of share distri"ution
=. 7ustomer sta"ility ,ell9developed "uying patterns !ith customer
loyalty. 7ompetitors understand purchase
dynamics and it is difficult for ne! service
providers to !in over accounts.
?. 0ase of entry Difficult. Market leaders esta"lished.
9. Technology # thrust to rene! the industry adopting modern
telecom technology.
4.@ 'arket Trend
/ike the international trend NepalFs data service market is also gro!ing rapidly. #s of Novem"er
2344 the internet penetration rate of Nepal is 44.39%. /ast year it !as )ust :.=9% during the same
month i.e. the internet penetration rate has "een more than dou"led )ust !ithin one year of time.
$n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/ CNepal
TelecomD %T/ N70// and $'Ps. #s of 44 1uly 2344 though there are 2? $'Ps altogethers in
operation thorough out Nepal "ut their market share is )ust 2% C:2:2=D. The ma)or su"scri"er holder
$'PFs are ,orldlinkC49.9JD BroadlinkC44.?JD and MercantileC9.:JD. 'imilarly %T/ also has )ust 2%
market share and hence the ma)or data su"scri"ers are !ith Nepal Telecom and N70//. 'imilarly it
is found that the ma)or data*internet service medium is !ireless Cappro&. 9;%D. Though there is a
niche market for data service through ca"le modem and optical fi"er "ut the market is very limited. 'o
$ have chosen !ireless data service in this marketing plan.
Nepalese people are facing pro"lem !ith either slo! speed data rate or !ith high cost of internet
usage. Num"ers of laptops and computers sold in the market have increased "y more than 2:333 "ut
due to lack of proper marketing and limited resources there is not much usage of internet "and!idth.
43
$n Nepal as internet is accessed predominantly through mo"ile devices than from any other means
and "ecause high speed internet compliments 'martphone there !ill "e higher demand for !ireless
data services !ithin 29 8 years. This demand for the !ireless data services shall "e augmented "y
glo"al trend to!ards data services and availa"ility of smartphones at cheaper price.
The present scenario of Data*$nternet market in Nepal is sho!n "elo!5
'u"scri"ers volume of Data services in Nepal C'ource5 !!.nta.gov.npD
43
#s per the annual report C233992343D of NT it is seen that Nepalese people are hungry for
"and!idth and ready to pay more. +ere is the scenario5
4.4 !C0 'arket 0rowt%>S%are Analysis
+ere is the B76 6ro!th9'hare Matri& analysis of Nepal TelecomFs Data*$nternet 'ervice.
43
Thus it is seen that the ma)or data "usiness of NT is #D'/ service C7ash co!D. But "efore it goes to
Dog state it is !ise to introduce anther ne! service like it !hich is !ireless "road"and data service
C,ima&*Net BoltD !ith more coverage9less time to deploy E more economic.
4.- 0overnment 5olicy
6overnment of Nepal has policy to "uild "road"and infrastructure in all =: districts. 6overnment has
already announced to provide internet in every house and mo"ile service to all the people. >or this
NT# has already called a tender to "uild optical fi"er net!ork to district head @uarters. (ecently NT#
has given license of ,iMa& to Nepal Telecom !ith 83M+G "and!idth in 2.86+G "and. $t !ill also
give license to other t!o Cone from telecom operator and other from $'PD very soon. Thus there is a
favora"le situation to "uild !ireless "road"and data service in Nepal.
4.3 Competitor Analysis
$n the Nepalese $7T market presently there are four ma)or players in the market viG ND7/ CNepal
TelecomD %T/ N70// and $'Ps. #s of 44 1uly 2344 though there are 2? $'Ps altogether in
operation thorough out Nepal "ut their market share is )ust 2% C:2:2=D. The ma)or su"scri"er holder
$'PFs are ,orldlinkC49.9JD BroadlinkC44.?JD and MercantileC9.:JD. 'imilarly %T/ also has )ust 2%
market share and hence the ma)or data su"scri"ers are !ith Nepal Telecom and N70//. 'imilarly it
is found that the ma)or data*internet service medium is !ireless Cappro&. 9;%D. Though there is a
niche market for data service through ca"le modem and optical fi"er "ut the market is very limited.
The main competition for NT high speed data services is from N70//Fs Data connect services. #s per
Nepal Telecommunications #uthority CNT#D data the data su"scri"ers of N70// are around 2.2
million !hich is almost ==% more than NTFs data su"scri"ers. People feel more speed in NcellFs data
connect than NTFs data service. But the tariff of data connection of N70// varies depending on the
package E on an average it is (s 2.3*MB !hile that of NT is flat (s 4.3 *MB. Thus the data tariff of
N7ell is almost t!ice that of NT data tariff. +o!ever N70// has only provided data connectivity in
4: cities in Nepal !hile plan of NT is to deploy it all over the Nepal. Moreover NT has a potential to
43
get more market share of data service segment as NT can get lo!er economics of scale due to e&isting
transmission "ack"one all over Nepal.
+ere is the 'trength and ,eakness analysis of the ma)or competitors$
S.o. Service 5rovider Strengt% &eakness
4 N7ell +igher !ireless
data rate
'upport from
$nternational
group
CTeleasoneraD
6ood am"ience
at customer
care centre
More P<'
Cpoint of salesD
More num"er
of !ireless data
su"scri"er
No license of
,iMa& or /T0
C46D
7overage in
less districts
Dependent on
parent
organiGation
2 %T/ <!n optical
fi"er link !ith
$ndia
'upport of Tata
group
More fre@uency
availa"le
Kery less
coverage area
Kery less
gro!th rate
Poor service
/ess fre@uency
availa"le for
high data
service C0K9
D<D
Dependent on
only 7DM#
technology
Cdying outD
8 ,orldlink More
su"scri"er
strength
/ong
e&perience of
$'P
(each in 44
districts
+igh cost
/ess
infrastructure
No fre@uency
license in
licensed "and
like ,iMa&.
4 Mercantile Moderate
su"scri"er
strength
/ong
e&perience of
+igh cost
/ess
infrastructure
No fre@uency
license in
43
$'P licensed "and
like ,iMa&.
More
interference
>ocused more
in Jathmandu
valley
: Broadlink More
su"scri"er
strength
(each in 24
places
+igh cost
/ess
infrastructure
No fre@uency
license in
licensed "and
like ,iMa&.
/ess coverage
in !estern
regions
-. Environmental Analysis
0nvironmental analysis is the study of company environment to pinpoint environmental
factors that can significantly influence its operations. This !ill help to understand !hat is
happening "oth inside and outside the company and to develop its strategies.
-.1 'acro Environmental Analysis
-.1.1 5olitical>legal
Though government of Nepal has put development of $7T and development of infrastructure
for internet access to every household in its development plan "ut there is no clear cut policy
for its actual implementation. $mplementation of $T park at Dhulikhel concrete 7y"er la! etc
are fe! e&amples of failure of government policy. Due to political insta"ility and
unavaila"ility of effective la!s $7T sector of Nepal has not "een flourished to its large e&tent.
#s the government changes fre@uently its policy also gets changed. #s far as "road"and data
service is concerned government is still not clear !hether voice over $P CKo$PD should "e
allo!ed. $t took almost : years for government to give license for ,iMa& to NT and license
to other t!o operators is still pending Cauction "ased on "eauty contestD. Being the incum"ent
operator like B'N/ in $ndia Nepal Telecom got opportunity to "ecome early "ird for ,iMa&
service in Nepal. This is a good advantage for NT "ut it is still in dilemma !hether ne&t
government !ill also follo! the same policy 7ivil Procurement inspection authority and
7$## allo! the spectrum fee charged to NT etc. !ithout giving 86*46 license.
43
-.1., Economic
0conomy is a ma)or factor !hich affects the "usiness of internet service. #s the national
economy gets improved internet users num"er also get increased. Based on $T% and $M>Fs
report it has "een noticed that though Nepal is a least developed country "ut it seen that as the
6DP % increases Ce.g. %'Q 8== to %'Q :22 during 233=92343D NepalFs internet users also
got increased C249433 to ;2:?33 i.e. more than dou"leD. This is a positive sign for
investment.
-.1./ Socio>cultural
The population of Nepal has "een increasing at a steady up!ard level in recent years. #s per
the census data C!!!.c"s.gov.npD in 2334 the population !as consisting of 28.4 million and
in 2344 this num"er has increased to 2;.; million. $n terms of population density in 2344 the
density has "een noticed as 4?4 people*km
2
up from )ust 4:= people*km
2
in 2334. The degree
of ur"aniGation also has "een increased from 48.9% to 4=% of population during the decade.
'imilarly the population of age group 4:9:9 has "een increased to :4.2% from :2.?% during
that period. #s the ur"an population increases as the youth population increases it tends to
create additional demand for ne! technology ne! computer ne! mo"ile sets and ne!
applications. This !ill generate more "and!idth for internet service like surfing social
net!ork sites listening online music gaming e"anking etc. Thus for !ireless "road"and
service there is a very good scope.
-.1.@ Tec%nological
The diffusion of technology innovation in Nepal has dramatically increased in recent years.
These changes can "e clearly seen in the $T sector. # very easy !ay to see the increase in $T
technology is the storage space availa"le in the market. >rom flash drive to hard disk the
storage space at minimum is at 2 giga"yte and this had replaced the use of 7D9(<M that can
only store =33MB. Peoples started using latest apps latest smart phone latest mo"ile etc.
This sho!s Nepalese people are sensitive to the technology !hich is very positive for this
pro)ect.
-., S&:T Analysis
',<T stands for strengths !eaknesses opportunities and threats. 'trengths and !eaknesses
are internal factors. <pportunities and threats are e&ternal factors. ',<T analysis helps in
auditing the company and its environment.
)nternal ?actors Strengt%s
+uge infrastructure
7ore competencies in $7T
+igh degree of $ndustrial
&eaknesses
Bureaucracy
,ork culture
43
External ?actors
e&perience and insight
'trong financial condition
'trong "rand name
#n attractive customer "ase
0conomies of scale
'uperior intellectual capital
Product innovation
capa"ilities
,ide geographical
coverage
%nionism
Monopolistic attitude
(esistance to change
/ack of harmony among
staffs
,eak customer care
Pro)ect Delays
'lo! decision making
/o! coordination among
various departments
:pportunities
6ro!ing market siGe
$ncrease in purchasing po!er
(ising "uyersF demand
(apid technological changes
'erving additional market
segments
S:$ 'axi E 'ax
Provide communication
services "ased on latest
technology.
$ncreased investment in
further esta"lishment of
infrastructure like optical
fi"er etc.
(apid deployment of BT's
to further increase the
reach.
Ne! services can "e
deployed at once in large
scale all over the country.
<pportunity to deploy
various value added
services such as data
mining etc.
&:$ 'ini E 'ax
Modified role of +(
department to "ecome
employee champion and
reduce the influence of
unionism.
Training and
Development programs
to change !ork culture
employee attitude and
make employees
concerned a"out
customers to capture
value in return. #lso to
prepare employees for
change programs.
T%reats
$ncreasing competition
7onsumer a!areness regarding
service @uality
6overnment intervention
>e! more operators to start
services
6ro!ing "argaining po!er of
customersF
ST$ 'axi E 'in
>ull utiliGation of the
infrastructure and capital
"ase to install state9of9the9
art technology and "eat
competitors in terms of
service @uality service
variety and geographical
coverage.
7onstantly "ring in
innovations
&T$ 'ini E 'in
0sta"lishment of full
functioning customer
care unit in all regional
offices.
Provide services "ased
on !hat customers !ant
not )ust !hat the
company has.
43
-./ Competitive factors
The ma)or competitive advantages of the product are as follo!s5
Cower cost
By follo!ing cost leaders%ip strategy !e !ill "e competing !ith competitorsF product on
price. #s NT has its o!n "ig resources of infrastructure like "uilding to!er M, (adio
<ptical fi"re infrastructures and "ig resource of technical man po!er it !ill "e reflected in
the reduced cost of data usage charge. >or e&ample )ust (s 4:33 for high speed internet C2
M"psD !ith :3 6B monthly data usage E !ithout any su"scription charge is the lo!est tariff
rate availa"le in the market. 'imilarly the su"sidiGed rate of 7P0 is also lo!est among the
competitors.
%sing this system in future NT can offer '$P phones to offer local and international voice
call at very lo! rate CK<$PD.
'ore speed < Cess interference
(ecently NT has got license of 83 M+G for the operation of ,iMa& service throughout the country.
%sing ,iMa& technology NT can offer ma&imum of =: M"ps throughput and also using M$M<
CMulti $nput Multi <utputD technology interference can "e minimiGed to a great e&tent. Till date this is
the ma&imum !ireless speed a user can get C/T0 !hich can give 433 M"ps has not "een licensed
yetD. Thus NT has competitive advantage than other players in the market.
Ease of use
7P0s for this service are plug E play type and hence very easy to use Ce&cept outdoor 7P0
!hich needs to "e mounted on a structure !ith /<'D. Moreover $ntel is developing ,iMa&
chipset in the /aptops. $f this gets finaliGed "y the end of this year then the customers donFt
need any 7P0 to en)oy the "road"and service in their laptops )ust s!itch it on and en)oy
surfing. No need to "uy any %'B dongle*7P0.
0ven for payment*recharge it is very easy. $n addition to various P<' "anks and e9payment if
the su"scri"er is NTFs su"scri"er of any kind of service they can pay it !ith the same "ill
using upcoming 7(TB C7ustomer (eal Time BillingD system.
?uture 5roof
43
No! a day ,iMa& e@uipments in the market can "e upgraded to /T0 through minor soft!are license.
+ence it is future proof no need of much additional investment in future and can offer 433 M"ps
throughput in future Cif NT# opens the /T0 licenseD.
3. :perational 5lan
3.1 Service 9esign and Specification
The main o")ective of this pro)ect is to provide the customer a high speed C"road"andD !ireless
internet service at very lo! cost "ut !ith high performance. #ccording to the customer segments
three category has "een classified viG 'ilver Clo!D 6oldCMediumD and Diamond C+ighD. +ere is
the service design for those services5
'ilver Package5 2:; J"ps average throughput !ith monthly usage of : 6B
6old Package5 :42 J"ps average throughput !ith monthly usage of 43 6B
Diamond Package5 2 M"ps average throughput !ith monthly usage of :3 6B
'ervice area5 = ma)or cities viG Jathmandu valley 7hit!an Pokhara Biratnagar Birgun)
Bhairaha!a*But!al and Nepalgun)
Targeted customer capacity5 #ppro& 433333 Cover su"scription !ill not "e doneD if
demands shoots up more Base 'tation CB'D and other resources !ill "e added gradually.
7ustomer Premises e@uipments C7P0D5 During pro)ect launch time "y NT C$ndoor
<utdoor and %'B typeD and after that period availa"le in local market.
#ll su"scri"ers prepaid type
Payment through Banks eBanking NTFs counter and P<' of 6'M*7DM#
7ustomer support5 24&= +r
Managed service C8
rd
party solutionD for <peration E Maintenance 7ustomer care and
"usiness promotion.
Karious promotional schemes !ill "e launched.

3., Fuality 'anagement
Buality management is the "iggest challenge for any internet service provider in Nepal. #s
per a survey carried out "y me Cduring 1anuary 2344D the ma)or unmet needs of NT are poor
43
customer care service and Buality related issues. 'o for this pro)ect those unmet needs !ill "e
addressed. +ere are the ma)or steps that NT !ill carry out for "etter @uality of service CBo'D5
4. Net!ork Performance5 $n order to provide +igh @uality of net!ork performance these
things !ill "e carried out
a. More num"er of B' C e.g. appro& B' re@uired during 4
st
year is 8: "ut :3 B'
has "een provisionedD.
". #verage contention ratio C"and!idth sharing ratioD in the Nepales $7T market
is 454; to 4543 "ut for this pro)ect 45? has "een considered i.e. less congestion.
%sing e&isting optical fi"re link !ith $ndia and 7hina enough international
"and!idth !ith redundancy !ill "e provisioned C#ppro& 4 6"ps estimatedD.
c. Net!ork operation maintenance and regular net!ork optimiGation !ill "e
carried out "y an internationally reno!ned company CoutsourcedD to meet the
set "enchmark C Please refer #pendi& 4=D.
2. 'ervice #ctivation Time5 %sing NTFs !e" portal the service activation !ill "e done
immediately Cas soon as the customer pays the "illD.
8. Node unavaila"ility5 %sing managed service i.e. third party maintenance service and
having dual po!er "ackup the do!ntime !ill "e minimiGed.
4. Throughput5 By using ,iMa& technology Chaving =:M"ps throughput at each B'D
optimiGed net!ork and less contention ratio Clocal 45? international 454D ma&imum
throughput as compared to other service providers !ill "e provided.
:. 7ustomer care5 24&= customer care units !ill "e esta"lished. To make more efficient
and customer friendly for this service also a third party solution !ill "e utiliGed like
e&isting 49= and 449? service.
;. Billing complains5 ,iMa& is very secure system and since all the su"scri"ers are
prepaid type there !ill not "e any detail "illing. 0ven if there is any complain a"out
the amount deducted it !ill "e settled as soon as possi"le !ith high priority.
=. 7ustomer perception 5 "y using a"ove factors high performance highly relia"le and
!ith high availa"ility service !ill "e provided to the customers and hence it !ill help
NT to reposition its "road"and data service CNet BoltD.

3./ )nventory management
>or this "usiness no need to keep any inventory. $n ordered to give more choices to the
customers the customer premises e@uipments C7P0D are ordered in 4
st
year only. That is also
)ust for 43% of the su"scri"ers during pro)ect launching time C)ust9in9time 1$TD. 'o no need
to do inventory management.
43
3.@ 5roAect )mplementation Sc%edule
43
*. 'arketing strategies and 'arketing 5lan
*.1 'arket forecast
#s sho!n a"ove there are plenty of resources Csecondary dataD !hich indicates that there are
tremendous opportunities for !ireless "road"and data service in Nepal. ,hether it is
improvement from 48= to 484 in $T%Fs $D$ inde& or :.?% to 44.4% increase Cmore than
dou"le gro!hthD of internet*data service penetration during last year all indicates the
favora"le condition for data service in Nepal. 'pecially the figure -9;%. of market share of
!ireless data service in Nepalese data market segment proves the rapid demand of !ireless
"road"and data serive in Nepal. Jeeping this scenario in my mind $Fve chosen !ireless data
servie "randed as NetBolt service C,iMa&D for this BDP.
Based on a"ove more than 433% gro!th rate of data service in Neapl it has "een envisaged
that to occupy 4% penetration under this pro)ect !ill "e @uite on safe side for this "usiness
plan. $t has "een envisaged that the gro!th rate !ill keep on increasing at least for ne&t three
years Cunntill it reaches to itFs saturation stageD. 'o for this pro)ect $Fve assumed to serve 4%
of total population in the 4
st
year 4.:% in 2
nd
year then 2.% in su"se@uent 8 years
C assuming that ne! innovative technologies may appear in the market during that periodD.
Jeeping up coming technologies in mind $Fve propsed to ugpgrade the e@uipmetns to /T0
Cupcoming technology !ith higher data rate 433M"psD "y the end of third year so that NT
can retain itFs su"scri"ers.
,ith communications services moving from voice only services to fundamentally data dominated
services Buick development of smartphones !ith diminishing price many gadgets !ith !ifi
$ntelFs (ED on integrating ,iMa& chipset in every laptop scenario of -More data rate more
#(P% Caverage revenue per unitD. in NTFs net!ork etc. are supporting factors for this market
forecast.
*., ST5 of et !olt Service
*.,.1 Segmentation$
'egmentation is done to kno! !ho are the "iggest customers the most profita"le ones and
the most attractive ones. The varia"les considered for segmentation are5
6eographic /ocation5 Jathmandau valley Pokhara valley 7hit!an Biratnagar
Birgun) Bhaira!a Cincluding But!alD and Nepalgun).
Psychographics
'ocial class5 for medium and high income group
/ife style5 energetic having either P7 /aptop 'martphone or any gadget !ith
,i>i
43
Behavioral
%ser status5 literate re@uires internet*intranet
%ser rates5 (egular and occasional users Ce.g. touristsD
Price sensitivity
Price and Buality sensitive
Different re@uirements C+igh*Medium*/o! volume usersD
*.,., Target 'arkets
>ollo!ing market segments are "eing targeted for this Net Bolt service5
4. 'tudents CO2 and universityD
2. 7orporate users
8. +ospitals 'chools and N6<*$N6<
4. Tourists
:. $nternet 7afes
;. +otels
*.,./ 5ositioning
NT !ill position its "road"and !ireless data service as a fast relia"le u"i@uitous and cost effective
service !hich is availa"le to all ma)or cities. This positioning !ill "e achieved through its industry
e&perience highly skilled !orkforce ne! industry9standard !ireless technologies and currently
e&isting strong infrastructure all over the country. This !ill "e achieved through highly transparent
tariff policies that NT has "een practicing for a long time for all its services. $n addition
implementation of highly customiGa"le and fle&i"le "illing system C7(TBD !hich is in the pipeline
shall help in positioning the high speed data services. /ast "ut not the least customer care for after
sales services !ill "e made highly effective and efficient "y training the e&isting !orkforce of NT as
!ell as using outsourced customer care services.
*./ 'arketing Strategies
The o")ective of NTFs high speed !ireless data services is to position itself as a market leader in
!ireless data services in Nepal. The marketing strategy !ill "e to make its users a!are of high speed
!ireless data services. #lso efforts !ill "e made to persuade customers that this service is relia"le
fast and cost effective. This message !ill "e communicated through variety of methods. >irst the
various data services and various options Cpackages and tariffD !ill "e clearly indicated in NTFs
!e"site. Ne&t this !ill "e communicated through advertisements in various leading daily
ne!spapers magaGines etc. #lso this !ill "e e&hi"ited in various hoarding "oards in strategic
locations in all = cities under this pro)ect. $n addition NT !ill demonstrate its !ireless data services
in various e&hi"itions and e&pos. NT !ill also demonstrate its data services in its customer care center
and various other pu"lic places such as airport and "us stations "y sho!ing TK channels through
internet. NT !ill also print itFs add in pu"lic transport. #lso introductory discount offering !ill "e
made to all the data users. /ater on discount offers !ill "e provided to various segments such as
college users and university users during the time of starting of ne! academic year. #lso NT !ill
provide %'B dongles at discounted rate to its valued customer segments. NT !ill also provide pre9
paid data services cheaply to tourists and people on "usiness trip in Nepal at cost effective !ays. $n
general NT !ill utiliGe com"ination of marketing mi& as given "elo!5
43
*./.1 'arketing 'ix (35s#
# com"ination of marketing tools !ill "e used to satisfy customers and company o")ectives.
# proper market analysis has "een done to create a successful marketing mi&.
1. 5roduct
Jeeping in mind that "road"and data service is in gro!th stage here are the different
products that !ill "e offered to fit the customers need5
a# Services$ 1. Silver8 ,. 0old /. 9iamond
'ilver package !ill "e targeted for lo! volume users C#verage 2:; Jp"s speed and
monthly usage : 6BD 6old package !ill "e targeted for medium volume users C#verage
:42 Jp"s speed and monthly usage 43 6BD and Diamond package !ill "e targeted for
high volume users C#verage 2M"ps speed and monthly usage :3 6BD.
$f Nepal Telecom #uthority gives the license of /T0 NT can add 5latinum package !ith
84 M"ps speed and unlimited usage for its premium su"scri"ers.
b# Customer 5remises E.uipments (C5E#$ 1. :utdoor8 ,. )ndoor /. ;S!
$n order to cater different types of customers needs NT !ill offer variants of customer
premises e@uipment C7P0D viG <ut door 7P0 $ndoor 7P0 and %'B 7P0. <utdoor 7P0 !ill
"e for the "usiness houses and for the su"scri"er !ho are either far from the "ase station Cfar
end of coverage areaD or !ants to "uild "ackhaul link for their offices. $ndoor 7P0 is targeted
for the 'M0 Csmall and medium enterprisesD*'<+< Csmall office*home officeD !ho !ants
fast internet at different places of the "uilding instantly. 'imilarly %'B 7P0 is for any type of
su"scri"er either having lap top or desktop computer.
Beside this NT !ill also "uild ,i9>i hotspots at ma)or places in the coverage area so that the
customer can directly en)oy accessing "road"and internet through their laptop and mo"ile
handsets.
43
$n order to give more choices of products NT !ill also allo! the 7P0 product to the local
market through franchisers. 7ustomer !ill have various choices in the local market !hich
can "e configured to NTFs system through the provision of <T# C<ver the #irD system
!ithout "ringing the set to NTFs premises.
,. 5rice
Price of these "road"and data service has "een set lo!est as compared to other
competitors. No su"scription fee has "een charged "ut more "and!idth and more
monthly usage has "een offered. The cost of 7P0 also has "een kept lo!er than
competitors in su"sidiGed rate. +ere is a glimpse of tariff5
TGs
Tariff
Structure 'ont%ly ;sage
Speed
Silver
(40!#
0old
(1+0!# 9iamond(4+0!#
2:; J"ps 833.33 9 9
:42 J"ps 9 :33.33 9
2M"ps 9 9 4:33.33
7ost of %'B 7P0N (s 4:33 C!*o Ta&D
<verall since the price of this data service !ill "e much less than others customers
can "e easily attracted.
/. 5lace79istribution C%annel
$n addition to direct marketing through various NTFs counters and customer care
centers to minimiGe the !aiting time E provide @uick service to the customers
alternative channels like computer shops mo"ile phone shops colleges
hotels*restaurants airport counters "anks and e"anking system !ill "e utiliGed.
#lmost all departmental stores !ill also "e chosen for the sale of Net Bolt service.
People can "uy even 7P0s from local market and activate it through e"anking or
through franchises Cusing <T# systemD. People can recharge their account easily from
small shops !here NTFs recharge voucher is availa"le or through pin less MP<'
centers or through "anks*e9"anking service etc as per their convenience.
@. 5romotion
43
NT !ill adopt $ntegrated Marketing 7oncept C$M7D for advertising and promotion
e.g. advertisement in various leading daily ne!spapers various popular magaGines
TK advertisements +oarding "oard displays flyers made availa"le through various
NTFs customer care center "ill payment centers and other outlets such as hotels
restaurants "anks !ith !hom NT has agreement for collecting su"scri"er "ills
sponsorship programs for national foot"all team etc. $n addition to this NT !ill start a
ne! concept of #d as done in other countries i.e. #d on the pu"lic transport C"us
covered !ith "ig siGe adD. >or the innovative ad concepts NT !ill also hire
professional add agencies. $n order to promote this data service NT !ill also utiliGe
NTFs "ulk 'M'. NT !ill also utiliGe other promotional schemes such as early "ird
priGes e.g. first 433 su"scri"ers !ith free 43 6B data reply of first 433 'M' ads !ith
free : 6B data 2:% discounts to studentsCfree 2:% additional usageD additional 4
6B data service on every usage of :6B etc.
NT !ill also utiliGe personnel channels such as advocate channels and opinion leaders
for the promotion. NT !ill also do different sponsorship program under the name of
Net Bolt service for its promotion.
4. 5eople (employee#
NT !ill start internal marketing "y educating its internal staff a"out the "enefits of Net Bolt
service and ho! to convince its customers.
-. 5%ysical evidence
NT !ill provide good am"ience use smart looking sales persons at all customer care centers.
CNT is lacking in the customer care service as compared to competitors. But no! a
day it seems NT has realiGed the inherent comple&ity of data services re@uirements of
very efficient customer service !orkforce. $t has started outsourcing the customer care
service like 49= 449? etc.D. $n addition such customer services shall "e made
availa"le throughout the country !herever re@uired and for 24&= as far as possi"le.
3. 5rocess 'anagement
#t all touch points NT !ill take care its valua"le customers !ith enough information in
pleasant !ay. >or e&ample NT !ill provide leaflets !ith all details of Net Bolt service at P<'
like departmental stores hotel restaurants airport etc. $t !ill provide all the details of Net
Bolt service at its !e"site and help desks.
*.@ 'arketing budget
Before launching the pro)ect (s ;=:?333 !ill "e spent on Media CTK>M Ne!spapersD
+oarding "oards "uGG @uiG /ottery and 7'( etc. The same amount !ill also "e spent in the
4
st
year of service launch period. >rom the 2
nd
year on!ard each year 23% !ill "e increased
in marketing "udget e.g. (s 4;249233 in 2
nd
year (s 494;8343 in 8
rd
year and so on.
Please refer to #ppendi& ;.a for the details.
43
*.4 6eys to Success
The keys to success are providing error free lo! do!ntime high average speed throughput data
net!ork all over the country in afforda"le price "y ordinary su"scri"ers. NT should ensure that
optimiGation of mo"ile net!ork C"oth for data and voiceD is done periodically. $n addition NT should
also take care of customer satisfaction in completely ne! !ays. This means customers should "e
catered not only through conventional customer care centers "ut ne! medium such as internet !e"
pages "logs forums and social media such as face "ook pages should "e used for this purpose.
*.- 'arketing control mec%anisms
NT already has good e&posure in data services. +o!ever the high speed data connectivity is
some!hat different from lo! data rate service in that su"scri"erFs aspirations from high speed data
service are naturally higher. +ence services such as TK video portals video conferencing !hich
re@uires intensive data throughput must !ork seamlessly. To ensure this some of the critical issues
that NT should take care of are5
The data net!ork should "e closely monitored. This means to generate performance data and
analyGe them day to day so as to ensure that there is no surge in data users at any place or at any
point in time.
There should "e no congestions in data servers and other net!ork elements directly affecting the
data connectivity. NT shall make policies regarding operation and maintenance of any net!ork
elements so that least do!ntime is o"served in case of failure and optimiGe itFs net!ork regularly.
NT shall try its "est to ensure customer satisfaction. This includes proper training of customer
care staffs outsourcing proper information flo! and training of outsourced company employees
taking regular feed"ack from users etc. . >or e&ample doing 'M' Pole putting feed"ack "o&es
placed at all ma)or outlet tracking records of regular customers and contacting personally
"y sales persons for their feed"ack Cpersonal touchD and encouraging online feed"ack on
NTFs !e"site are some of the !ays.
B. :rgani2ation and 'anagement 5lan
>or this pro)ect of !ireless "road"and data service NT !ill follo! itFs present organiGation
structure and utiliGe its staff. ,ithout adding more staff for this pro)ect NT !ill opt to go for
the managed service "y third party. The "idder !ill operate and maintain the net!ork. More
point of sales CP<'D in the market !ill also minimiGe the NTFs sales counter staffing pro"lem.
The counter clerks !ho sell 6'M*7DM# !ill also sell the NetBolt service. #fter proper
training the e&isting support centre people !ill also handle this service. Beside this a third
party solution !ill also "e implemented.
B.1 :rgani2ation structure
The present organiGation structure at the corporate level is headed "y the Managing Director CMDD
!ho is also a mem"er of NT "oard. The MD is the 7hief 0&ecutive <fficer of NT. %nder MD there
are = Deputy Managing Directors CDMDD of /evel 44 in 7orporate office !ith the responsi"ilities of
Planning Business E 7hange Management Development <peration E Maintenance >inance
43
$nternal #udit and +uman (esource DevelopmentI ; Directors of /evel 44 in >ield <ffice !ho are
responsi"le for $T directorate P'TN 'ervice Directorate Mo"ile 'ervice directorate ,ireless 'ervice
Directorate 'atellite 'ervice Directorate and Telecom training centerI ; Directors of /evel 44 and
/evel 43 in (egional Directorates. The organisation structure of Nepal Telecom depicting different
departments is sho!n "elo!5

E5AC TECEC:'
!oard of 9irectors


'AA0)0 9)=ECT:=


C:=5:=ATE :??)CE ?)EC9 :??)CE =E0):AC 9)=ECT:=ATE

9'9 > ?inance < Company
Secretariat

9'9 > !usiness < C%ange
'anagement

9'9 > 9evelopment

9'9 > :peration < 'aint.

9'9 > 5lanning

9'9 > 1uman =esource 'gmt.

9'98 )nternal Audit

9irector
)T 9irectorate

9irector
Telecom Training Center

9irector
'obile Service 9irectorate

9irector
&ireless Service 9irectorate

9irector
Satellite Service 9irectorate

9irector
5ST Service 9irectorate

9irector > C=98 !irgunA

9irector > E=98
!iratnagar

9irector > 6=98 Sund%ara

9irector > &=98
!%aira%awa

9irector > '&=98
epalgunA

9irector > ?&=98
9%angadi
43
$n order to handle $7T related services NT has already formed an $T directorate in its
organiGation structure. The organogram of $T department is sho!n in #NN0H944.
B., 'anagement team
$T departmentFs director !ill take lead for this pro)ect. $T department provides nation!ide
internet and data services for fi&ed net!ork of NT and recently it has also started !ireless ,i9>i
pro)ect. This department is responsi"le for the generation of "ills for the P'TN customer. $t is also
maintains the internal computer net!ork of the organiGation $P address handling. ,ith the increase
in "usiness volume additional manpo!er involved in technical department as !ell as
marketing department !ill "e done.
B./ Team members
$t departments director is an $7T engineer holding MB# degree. 'imilarly Mangers of
development and operation Dpt managers all have masters degree in $7T. 'imilarly :3% of
the engineers are holding masters degree and developed skill through various trainings.
Basically all the staffs are very competent.
B.@ Staff composition
Present staff composition is sho!n "elo!5
43
1+. 1uman =esource 5olicies
+uman resource C+(D policies provide an organiGation !ith a mechanism to manage risk "y
staying up to date !ith current trends in employment standards and legislation. The policies
must "e framed in a manner that the companies vision E the human resource helping the
company to achieve it or !ork to!ards it are at all levels "enefited and at the same time not
deviated from their main o")ective.
1+.1 =ecruitment and selection
#ll the re@uired vacant posts are fulfilled "ased on follo!ing provisions are made in Jarmachari
Biniyama!ali 23;85
?or level 1 E , 5 #ll re@uired num"er of seats !ill "e called for free open competition.
?or level / E - 5 :3% of total re@uired num"er of seats !ill "e called for free open
competition and remaining :3% !ill "e secured for internal L>ile
Badhu!aL and internal e&amination
?or level 3 (Tec%nical# 5 =:% of vacant seats !ill "e called for free open competition and
2:% of the remaining seats !ill "e secured for internal L>ile
Badhu!aL and internal e&amination.
?or level 3 (on>tec%nical#5 433% of the remaining seats !ill "e secured for internal L>ile
Badhu!aL and internal e&amination.
?or Cevel * E 11 5 #ll vacant seats are secure for L>ile Badhu!aL and internal
e&amination.
(ecruitment secretariat then su"mits the details to the (ecruitment 7ommittee !hich comprise of the
follo!ing.
4. Managing Director R 7hairman
2. DMD +( 9 Mem"er
8. DMD Technical appointed "y MD 9 Mem"er
4. (ecruitment Manager R 6eneral 'ecretary
(ecruitment secretariat carries out the )o" vacancy advertisements as per the decisions for "oth
Cinternal*e&ternalD posts and instructs e&am section to conduct the selection procedures Ce&am
intervie!s internal competitionD
(ecruitment committee finaliGes and pu"lishes the result of successful candidates as per e&am or
internal performance evaluations and sends it to Personnel #dministration 'ection for appointment
and socialiGation Cinduction for ne!D and posting as per re@uirement.
1+., 9evelopment and training
#ll the technical staff as !ell as sales counter people !ill "e given training a"out NetBolt
service. # "udget for personal development of amount (s =33333 has "een allocated in 4
st
year and there !ill "e increment of 43% in each year. This training is aimed at providing the
43
kno!ledge a"out Net Bolt service >ault diagnosis Net!ork optimiGation and "usiness
development tactics.
1+./ =eward and motivation
NT has "een applying a 239429?9;3 grade techni@ue for performance appraisal. The score of 23 points
is a!arded "y the supervisor 42 points is a!arded "y a person a"ove the immediate supervisor and ?
points is a!arded "y the +( committee. The remaining ;3 is divided into three segments. >irst 24
points for the num"er of years !orked at NT second 23 for the geographical location !here the
person has !orked third 42 for the educational @ualification and final 4 points for the num"er of
years the person has !orked as an office in9charge at any office of NT all over Nepal. #s per the
"yla!s only Technical people can "e an office in9charge. +ence for non9technical the division of ;3
!ould "e 8?923942.
Based on financial performance NTFs staff used to get "onus and incentive as a motivation
remuneration. But it !as not "ased on performance appraisal of the individual staff. But since last
year a fund has "een allocated to re!ard and motivate fe! staff "ased on performance. 'o for this
service staffs have opportunity to get re!arded "ased on their performance. Beside this they used to
get a"road training promotion as a motivation factor.
1+.@ 1=' assessment of T
Based on a +(M assessment done "y a team Cincluding meD on 1anuary ? 2344 here is the
findings summary5
>rom the +( #ssessment matri& !e have analyGed the area of strength and !eakness of the Nepal
TelecomFs +(M >unction. Most of the indicators lie "et!een 2 and 8 !hich mean the overall
!orking area of this function is less than satisfactory. +o!ever further detail analysis of all those
functions need to "e done in order to assure the overall status of +( functions practiced in NT.
43
1+.4 Conduct and capability
NT has staff "yla!9 23;; CJarmachari Biniyama!ali923;;D !hich govern all the +(
activities. The company !ill put an effort to ensure that there is a strong management
frame!ork and key principles to support people at !ork. The purpose of the policy is to help
manager to deal effectively !ith staffs !hen their conduct performance falls "elo!
accepta"le standards.
11. ?inancial 5lan and Analysis
>inancial plan is essential for opening of any "usiness. The plan provides the pro)ected financial
status of the "usiness. The financial plan includes calculation of capital re@uirement revenue and
e&penditure forecast profita"ility pay"ack period cash flo! management return on investment
etc. Pre9operating e&penses for ; months and a five years pro)ected financial status is calculated to
understand the feasi"ility of the "usiness.
11.1 Capital =e.uirement ?orecast
9escription Amount
>i&ed #ssets
=984924:
Pre9operating 0&penses 434948?;
,orking 7apital
4?;899
Total Capital =e.uirement B+8+++8+++

Total capital re@uirement of N(s. 93333333 !ill "e invested "y the company itself from its
reserve E surplus fund of (s 82449:9942= Cas per audited "alance sheet of NT on #shadh 82
23;=D. Please see #nne& 4; for the details.
11., =evenue forecast
'ont% wise =evenue forecast from subscription (vide Appendix @.#
43
(evenue forecast from selling of 7P0 (vide Appendix 4#
4./ )ncome and Expenditure Statement (vide Appendix B#
43
11./ Cas% !udget (vide Appendix 11#
11.@ =etained Earning Statement (vide Appendix 1+.#
11.4 !alance S%eet (vide Appendix 1,#
11.- 5rofit 'argin =atio
43
Hear 1 Hear , Hear / Hear @ Hear 4
4:.92% ;2.=8% ;:.?4% ;:.=4% ;:.24%
The a"ove profit margin ratio indicates positive trend of the "usiness. #s the pro)ect is
utiliGing e&isting facilities "y adding some facilities !hich adds value to the planned pro)ect
has sho!n very good return "y the pro)ect. Market trend for loan is supposed to around 4;9
4?% interest rate the return in the first year itself is 4:.92% and hence the pro)ect seems
vital for the e&isting NT "usiness.
11.3 =eturn on Assets
Hear 1 Hear , Hear / Hear @ Hear 4
89.24% :4.33% 44.?8% 84.93% 24.42%
(eturn on assets is also positive during : years of services. +o!ever from 8rd year on!ard
the % is in the decreasing trends !hich indicates to plan for the investment in ne! pro)ect so
that assets could "e mo"iliGed rather than keeping idle.
11.* ?und 'anagement
#ny accumulated profit !ill "e transferred to reserve and surplus account periodically and surplus
cash "alance !ill "e transferred to NTFs head office account. Board of directors and NTFs
management !ill decide a"out itFs re9investment Ce.g. pipe line pro)ects like 4 crore 6'M 2:
/akh $P 7DM# pro)ect etc.D "onus incentive etc.
1,. Critical =isks and Contingencies
,iMa& is completely ne! technology in Nepal though there are some other technologies
availa"le in the market. People are not much satisfied !ith the @uality of 6'M net!ork of
NT. 'o people may have perception that this Net Bolt service may also "e the same. 'o the
company in the first hand need to reposition its "rand and create a!areness a"out the @uality
of the service and its various useful applications to its customers. 'imilarly other players may
play a game and try to delay NTFs pro)ect for service launching Cas in the case of 7DM#D.
43
$t has "een envisaged that market for Net Bolt service !ill depend on follo!ing ma)or
factors5
Price
Buality
#fter sales support
Ne! entrants !ith more competitive price and technology
NT !ill of course meet all those re@uirements !ith the strategies as e&plained a"ove "ut
incase there is any unavoida"le circumstance due to !hich NT canFt attract more su"scri"er
then in that case as a contingency plan $ have planned to use this net!ork as the "ackhaul link
for the upcoming and running pro)ects like 6'M and 7DM#. Being $P "ased net!ork it !ill
"e cost effective solution for Point to Multipoint link. No need to put many antennas on a
to!er and link set9up time !ill very less. By this our investment !ill "e @uite on safe side.
1/. Conclusion
Nepal Telecom has gone a long !ay to understand the market it is trying to serveI good
solutions have "een identified. The company is very positive that it !ill "e recogniGed "y its
customers as a "rand name for high @uality "road"and internet service at the most
competitive price. >inally the company is very positive that the "usiness "ill "ring profit as
predicted and !ill contri"ute immensely in economic E $7T gro!th of the nation "y
promoting the use of fast internet.
43