Beruflich Dokumente
Kultur Dokumente
strategy in Nepal
Submitted By:
Submitted To
At the
This is to certify that I have completed the Summer Project entitled “Study of
telecommunication services and their promotional strategies in Nepal’ under the
guidance of Mr. Vikash Jung Shahi (Coordinator) for the partial fulfillment of
requirement for the degree of Bachelor of Business Administration at the Faculty of
Management, Pokhara University. This is my original work and I have not submitted it
earlier elsewhere.
Signature: ……………………
This is to certify that the Summer Project entitled “Study of telecommunication services and
their promotional strategy in Nepal” is an academic work done by “ Keshav Raj Pandey”
Submitted in the partial fulfillment of the degree of Bachelor of Business Administration at
faculty of Management , Pokhara University under my guidance and supervision. To the best
of my knowledge, the information presented by her in the summer project report has not been
submitted earlier.
Name:
Date:
In-Charge of Research:
PW Date:
Acknowledgements
I would like to express my deepest appreciation to all those who provided me the
possibility to complete this report .A special gratitude I give to our supervisor, Mr
Vikash Jung Shahi whose contribution in stimulating suggestions and encouragement ,
helped me to coordinate my project especially in writing this report.
Furthermore I would like to acknowledge the administration and staff members of NTC
and Ncell Office who supported and helped me in gaining the information
Last but not least many thanks to Mr. Keshav Prasad Pathik Principal of Alpine
Management Collage for giving suggestion and guideline to prepare this report.
Thank You!
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background.......................................................................................1
1.2 Statement of problem........................................................................8
1.3 Objective of study.............................................................................8
1.4 Research Methodology.....................................................................8
1.4.1Sources of data collection...............................................................9
1.5 Population and sampling...................................................................9
1.6 Study Tools.......................................................................................9
1.7 Limitation of study............................................................................9
1.8 Literature Review............................................................................10
CHAPTER TWO................................................................................13
DATA PRESENTATION AND ANALYSIS
2.1 Data Presentation.............................................................................13
2.2 Data Analysis...................................................................................22
2.3 Major Findings.................................................................................22
CHAPTER THREE
SUMMARY AND CONCLUSION....................................................26
3.1 Summary.........................................................................................26
3.2 conclusion........................................................................................27
REFERENCES.............................................................................................29
APPENCICIES.....................................................................................30
LIST OF FIGURES
INTRODUCTION
Telecommunication services
Telecom services now include fixed-network services (data retail, Internet retail, voice
retail and wholesale) and mobile services. Fixed-data services includes all
dedicated/private line, packet and circuit-switched access services (for example, frame
relay, asynchronous transfer mode, IP, Integrated Services Digital Network, DSL,
multichannel multipoint distribution service [MMDS] and satellite) retail revenue. No
differentiation is made between the type of traffic or application carried by these
services. All types of transmissions non-voice data, image, video, fax, interactive
services and even voice can be carried by these services regardless of whether the
source format is analog or digital. All revenue reflects service provider annualized retail
revenue paid for by the business and residential end user of the service; no wholesale or
carrier-to-carrier revenue is included.
Fixed-voice services is another service that reflects retail voice service revenue for all
services that are sold as such to end users and includes the provision of local and long-
distance services related to voice (calling charges, line rental/subscription and
connection fees are included in this category), enhanced voice services, data and fax
transmission over the circuit-switched PSTN, and retail voice over IP revenue — paid
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for by the business and residential end user of the service; no wholesale or carrier-to-
carrier revenue is included.
Mobile telecom services generate income from mobile telephone calls and mobile data
usage (Short Message Service [SMS] and mobile data access) from all mobile operators
in that regional market.. Income from mobile telephone calling charges, mobile data
access, SMS charges, line rental/subscription and connection fees are included in this
category. Wholesale/carrier services are not included as a component of business IT
spending. Wholesale/carrier services reflect carrier revenue from carrier-to-carrier
service transactions. Telecommunications services are a global market worth over US$
1.5 trillion in revenue. Mobile services account for roughly 40 per cent of this, while
mobile subscribers worldwide currently outnumber the use of fixed telephone lines by
more than two to one. Over the past decade, the market has witnessed far-reaching
changes, with the introduction of competition into a sector that was once principally a
monopoly. There are large numbers of the players providing the telecommunication
services in recent days.
In Nepal, telecom service was formally provided mainly after the establishment of
MOHAN AKASHWANI in B.S. 2005. Later as per the plan formulated in the First
National Five year plan (20122017 BS); Telecommunication Department was
established in B.S. 2016. To modernize the telecommunications services and to expand
the services, during third five-year plan (2023-2028), Telecommunication Department
was converted into Telecommunications Development Board in B.S. 2026.After the
enactment of Communications Corporation Act 2028, it was formally established as
fully owned Government Corporation called Nepal Telecommunications Corporation in
B.S. 2032 for the purpose of providing telecommunications services to Nepalese
People. Nepal Telecommunications Authority (NTA) is the regulatory body of
telecommunications in the country. Today, there are two Today, there are two Major
telecommunication providers in Nepal, which have penetrated the market.
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Major telecommunication providers in Nepal:
NCELL
Ncell is a privately owned mobile network operator in Nepal. Ncell was the first
private company to operate public GSM services in Nepal, initially under Mero
Mobile brand which was re-branded to Ncell on 12 March 2010. Ncell broke the
monopoly held by the then statate owned, now public telecommunication company
Nepal Telecom. On 12 April 2016, Ncell has officially become a part of Axiata Group
Berhad, a Malaysian telecommunications group. The company is owned in 80% by
Axiata Group Berhad. Ncell is the largest ISP in Nepal with a subscriber base of more
than 13 million users. Ncell has a slogan of “Ncell With you, always.” Ncell had 10
million mobile subscribers in early 2013. The vision, mission and strategy of Ncell
are following:
Mission:
Vision:
Strategy:
Entertainment Messaging
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Bonus Packs MMS
PRBT
Balance Notify Me
My5
Missed Call
Notification
Ncell Kosheli
Ncell provide services relating to the devices like iphone, Ncell connect and to buy the
smart phone. Ncell has new technologies and thoughts that attract many customers
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across Nepal which leave behind other telecommunications in competitive market.
However, People across Nepal complain about the charges and taxes it takes. It
organizes several IT related programmes, Sport-tournaments and sale smart phones
being a carrier. It is continuously making effort on its promotional activities. It is very
good at advertising. Recently, the company has launches 4G technology all main main
cities of Nepal.
NTC:
Mission
Vision
Goal
The company was a monopoly until 2003, when the first private sector operator UTL
started providing basic telephony services. It is the sole provider of fixed line, ISDN
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and leased-line services in Nepal. With around 5,000 employees, NTC is one of the
largest corporations of Nepal. It has a total of 262 telephone exchanges in various part
of the country serving 603,291 PSTN lines, more than 5 million GSM cellular phones
and more than a million CDMA phone line as of July 2011. According to recent data,
there are about 10 million users of Nepal Telecom including all those of fixed
landline, GSM mobile, CDMA and internet service. NTC has starred SIP telephony
service for the Nepalese lying beyond the country to call Nepal from round the world
in its own tariff through internet.
Nepal Telecom is the key market player as it holds about 60.30% of totals no. mobile
phones and 91 % of total no of Fixed Telephones. It has 221 Public Switch Telephone
Network (PSTN) exchanges in 72 districts and has covered all 2915 VDC with Basic
Telephone service.
Basic telephone,
Internet PSTN Service
Mobile telephone
ADSL
Local calls
International Telegram
Domestic Telex
International Telex
Leased Lines
Pay Phone
HCD Service
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Prepaid PSTN Bills in the Internet
Web SMS
E-mail Aler
Following the entry of Ncell (previously called Mero Mobile) into Nepal's
telecommunications industry in 2005, it is no longer the only provider of GSM mobile
service. Due to the rise of the internet and technology, market of the Ncell VS NTC is
becoming really challenging and competitive. They are mainly focusing on the need
of the today people, to become better among. Both of them are trying to prove that
either Ncell is better than NTC or vice versa. The various facilities that are provided
by both makes them better and distinguish. There is strong competition between Ncell
and NTC. There are hundreds of facilities that are provided by both the
telecommunication provider. This research aims to compare the promotional strategy
of both the competing telecom provider and evaluate either NTC or Ncell use
effective promotional mechanism to attract the large number of customers.
The first step in preparation of this report is to design the framework of the research.
The task begins with the collection of necessary data and information concerning the
study. The data and information collected has been studied carefully and presented
them systematically and get them analyzed so as to meet the objective of the report. All
data provided has been thoroughly studied and then search design was planned. The
problem is identified and data are collected as per the research framework. The
collected data are further analyzed to come up with the valid conclusion.
Primary data:
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The data collected for the very first time by filling up the questionnaire Google docs,
interview with the staff of Nepal telecom and Ncell. Questionnaire survey is conducted
to know the choice of general public for NTC or Ncell and also to compare either Ncell
or NTC uses best promotional strategy.
Secondary data:
The data were collected from various booklets, pamphlets, magazines and websites
and reports submitted by seniors and colleagues.
For this study we conducted survey on 50 people. Out of 50, we got responds from29
people.
Some of the information was extracted from the website, magazines so that
data may not be accurate and updated.
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1.8Literature review
In the present competitive scenario, Nepal Telecom is the only service provider that has
been providing rich and quality network services at affordable price throughout the
country. NT serves over 45 percent of voice customers and over 57 percent of the total
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data users across the country. This growth in market share has been possible even in the
presence of stiff competition with other telecom operators and the ISPs. As the
incumbent operator, Nepal Telecom is concentrating its efforts to expand service
coverage in remote areas of the country and reach the under-served population. In the
FY 2012/13, the customer-base had grown by 1
8.30 percent than that in the year earlier to reach 9.17 million. In comparison to this,
customer base has grown by 18.83 From the Desk of Managing Director percent to
reach 10.9 million in the FY 2013/14. Similarly, the Internet customer base has grown
by 1.42 million than that of the previous year and has exceeded 4.7 million in the FY
2013/14.
The managing director of Nepal Telecom, Buddhi Prasad Acharya told that “We want
Nepal Telecommunication to respond on our request so that we can work for 4G in
Nepal right way.” He furthermore added “We cannot procure technology as fast as
private sector can and we have to compete private sectors which have great impact for
making our service full of good quality”. It has been more than one year since Nepal
Telecom has drafted an application for the approval to launch 4G in Nepal. Besides
increasing the quality of services, NTC is also increasing its efforts on the promotion
activities.
Corporate Communication Director of Ncell Sanju Koirala says, “We believe in living
in the heart of Nepalese people. We continue make efforts to provide better services to
our customers with the effective communication. Ncell is with you always”. Ncell has
new technologies and thoughts that attract many customers across Nepal which leave
behind other telecommunications in competitive market. People across Nepal complain
about the charges and taxes it takes. It organizes several IT related programmes, Sport-
tournaments and sale smart phones being a carrier. Recently, the company announced
that it will be launching 4G technology in the near future.
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Ncell is continuously making effort to provide better services to the wider Nepalese
customers. It is spending millions of rupees on the promotion of its services. Erim
Taylanlar, CEO of Ncell says that the slogan “Ncell With you, always’, has created the
sense of belongingness to the Nepalese people. Ncell is continuously making effort to
promote its services in Nepalese market. There is revelry between Ncell and NTC to
serve the Nepalese society. However, the main concern is if they are fulfilling all the
services to the customers as per their claim during their promotion.
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CHAPTER TWO
For this research 50 people were requested to fill up the questionnaire Out of 50
people we got responds from 29. Among 29 people who responded 3 people were
aged 30- 40 years of age while the other responded aged 20-28 years.
Ncell 40%
NTC 60%
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Allows calling and receiving call immediately
Ntc Ncell
40.00%
60.00%
This depicts that out of 29 respondents, 40 % think that Ncell allows calling or
receiving call immediately and 60% think that NTC allows calling or receiving call
immediately.
NTC 57.1%
Ncell 48.3%
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voice clear quality
ncell NTC
48.30%
51.70%
The figure shows that out of 29 respondents, 57.1 % feel like NTC has a more clear
voice quality that Ncell, while 48.3 % feel that Ncell has more clear voice quality
than NTC.
NTC 62.1%
Ncell 37.9%
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Roaming services
NTC Ncell 4th Qtr
37.90%
62.10%
The figure illustrates that out of 29 respondents 62.1% would like to carry NTC while
going out of valley while only 37.9% would prefer to carry Ncell.
NTC 39.3%
Ncell 60.7%
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Send and receive SMS timely
NTC Ncell
39.30%
60.70%
The figure display that out of 28 respondents, 60.7% thinks that Ncell allows allowing and
sending SMS instantly while 39.3% thinks that NTC allows sending and receiving SMS
instantly.
NTC 92.9%
Ncell 7.1%
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overall low phone tarif
NTC Ncell
22.50%
77.50%
The figure above depicts that out of 28 respondents only 7.1% of population believes that
NCell adds upon no hidden costs while the remaining majority i.e. 92.9% believes that NTC
allows overall low tariff with no hidden costs involved.
NTC 58.6%
Ncell 41.4%
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More satisfaction through service
Ncell NTC
41.40%
58.60%
The figure above displays that NTC brings over more satisfaction among people that
Ncell. Out of 29 respondents 58.6% are found to be satisfied through the services of
NTC and 41.4% of respondents are satisfied with the services of Ncell.
NTC 32.1%
Ncell 67.9%
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Sales
NTC
Ncell
The figure shows that out of 28 respondents, 67.9% believes that Ncell provides good
internet services while only 32.1% believes that NTC provides good internet services.
NTC 28.6%
Ncell 71.4%
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Sales
Ncell NTC
28.07%
71.93%
The figure above depicts that out of 28 respondents only 28.6 % finds NTC recharge
and sim card easily while 71.4% finds Ncell’s recharge card and sim card easily.
NTC 44.8%
Ncell 55.2%
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Relaible service
Ncell
NTC
The figure above shows that out of 29 respondents, there is not much variation is
relying highly reliable while 44.8% of respondents believes Ncell service is highly
reliable.
NTC 31%
Ncell 69%
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This was the open end question and 29 people responded to it. Among the respondent
69% of them thought that Ncell was using the promotional strategies that NTC due a
number of reasons.
2.2.1 Ncell
During our secondary study we found that the Ncell is following several promotion
strategy. Some of the major strategies are following:
The sole sponsor of the Festival, Ncell, the leading telecommunication company in
Nepal, reaffirms its commitment to the slogan 'Here for Nepal' by continuing its
financial support towards the promotion of Nepali literature. The organizer of the
Festival, The Bookworm Foundation hopes that by bringing writers and readers
together in one forum for literary conversations, the Festival will help broaden the
scope and quality of Nepali literature. The Festival will have panel discussions, poetry
recitals and book launch and signings, and much more. Lovers of literature will get a
chance to rub their shoulders with the national and international literary stars, engage in
racy dialogues, and grab a book and get it signed by their favourite writers.
Ncell has announced reduced fares while calling to India from its network. All calls to
India will now cost only Rs. 2.99 per minute compared to the previous rate of Rs. 6.
(Without tax) with the pulse for the call 60 seconds. The rate will be same for peak
hours and off hours.
Ncell claim to provide the cheapest, fastest and the most reliable gateway for bulk
SMSs. They even guarantee the lowest price and user satisfaction.
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Ncell purple festival was mainly aimed at maintaining good relations with the
customers through the entertainment loaded event. Whenever the customers
remembered the event they would also remember Ncell.
Promotion is for the prepaid voice subscribers of Ncell Private Limited ("Ncell"). The
participants will be provided with registration of one code number for every recharge
of multiple Rs.100. The received code numbers are eligible only for the particular
week which gives chance to win 1 car for 1 winner, 5 tola gold for 1 winner and 1 bike
for 1 winner. Bonus balance of Rs. 100 given to 5000 customers will be valid for 7
days from the date of addition of bonus.
8. Ncell Gaun
It has painted the roofs of houses in Manakamana (which can be seen from cable car
and that place is also called as Ncell Gaun by local peoples).
9. Flash moves
A group of people dance who belongs to Ncell, illustrating a cause, in the public area.
2.2.2 NTC
NTC is also spending its resources on the promotion of its services. During our study
we found that NTC is conducting following promotion strategy that has got the light
of importance:
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3. Nepal telecom corporate futsal league
4. Dashain, Tihar and Chat offer
5. Football sponsorship with Nepal Police
6. Prabhatpheri
7. International telecommunication day( night data package) on 2073-2-3
8. SLC sim offer
9. +2 sim offer
CHAPTER THREE
SUMMARY AND CONCLUSION
3.1 Summary
This report is prepared for the purpose of fulfilment of the partial requirement of the
degree of bachelor in business administration. The project is typically based on the
subject “Study of Telecommunication Services on Their Promotional Strategy”
(Comparative study of NCELL & NTC).
The theoretical factors of a components of the subject area this research report is
basically targeted to the real world practices. This study compares the two biggest
telecommunication services in Nepal in term s of satisfaction among the people through
their services and best promotional policies they use to promote their brand.
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NTC & NCELL are sort of competitors in Nepal, NCELL work very hard on their
promotional activities but NTC does not work much, hence it would be good if NTC to
make a little more efforts for its promotion.
NCELL does many activities that touches the heart of people and compel to them to use
NCELL. In the present competitive scenario, Nepal Telecom is the only service
provider that has been providing rich and quality network services at affordable price
throughout the country.
NT serves over 45 percent of voice customers and over 57 percent of the total data
users across the country. This growth in market share has been possible even in the
presence of stiff competition with other telecom operators and the ISPs. As the
incumbent operator, Nepal Telecom is concentrating its efforts to expand service
coverage in remote areas of the country and reach the under-served population.
3.2 Conclusion
Moreover, Ncell does many of the things that would attract more audience and
compel people to use their services through different innovative ideas and offers.
Ncell believes in continuous research activities so that it could address the recent need
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sof the people. This study shows that NTC does not work even half for such activities
unlike the Ncell does.
This study further helps to draw several conclusion regarding the comparison between
NTC and Ncell in terms of satisfaction through service, internet facilities, roaming
facilities, instant text replying, instant receiving and calling and so on.
This study is an inspirational case study which compares the two biggest
telecommunication services in Nepal in terms of the satisfaction among people
through their services and the best promotional policies they use to promote their
brand. This study can be helpful for the further research activities in the
telecommunication field.
NTC and Ncell are sort of competitors in Nepal, Ncell works very hard on
promotional activities but NTC does not work much, hence it would be good if
NTC could make a little more efforts for its promotion.
Ncell does many activities that touches the heart of people and compel them to
use Ncell, but the only factor that pulls them down is the cost factors, hence
Ncell could capture high market share if it could lower its cost of services.
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References:
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Appendices:
How many times do you receive call in a day ?
a. 1 b. 2 c. 5 d. More than
five
Which service do you prefer more ?
a. NTC b. Ncell c. Both d. Any other
Are you satisfy with the internet service of NTC ?
a. Fully agree b. Agree c. Neutral d. Disagree
e. Fully disagree
e. Fully disagree
e. Fully disagree
e. Fully disagreez
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